Legendary Luxury Retailer Saks Needs a New Start. It's Looking for 'Long-Term Potential'

Key Takeaways

• Saks Global Enterprises, which includes Neiman Marcus, Bergman Goodman, and its namesake brand, sought bankruptcy protection Wednesday.
• The retailer aims to keep stores open during the restructuring, and has appointed former Neiman Marcus CEO Geoffroy van Raemdonck to oversee the company during the transition.

One of America's most storied luxury names is looking for a fresh start.

Saks Global Enterprises—which includes Saks Fifth Avenue, the home goods specialist Horchow, and the discounters Saks Off 5th and Neiman Marcus Last Call—sought bankruptcy protection Wednesday and appointed a new leader to steer the company through a restructuring.

The Chapter 11 case comes after multiple attempts to turn around the luxury retailer, including the purchase of other high-end merchants such as Neiman Marcus and Bergman Goodman, and the liquidation of assets in a Canadian bankruptcy case. The company struggled to find its footing as the luxury segment cooled, despite a number of organizational changes. By one measure, Saks Global Enterprises ended the second quarter of 2025 with a $77 million loss and sales falling 13% year-over-year, Bloomberg reported.

The company's press release didn't offer many details on what might be next for the business, though it said it sought to "invest resources where it has the greatest long-term potential." Saks didn't respond to requests for additional comment in time for publication.

Why This News Matters to Investors

The bankruptcy filing comes amid a tough period for luxury brands. The so-called aspirational customers, who can't comfortably or routinely afford high-end items, have cut back on such spending.

The bankruptcy is the latest twist in more than a century of history. Saks Global Enterprises grew out of a department store that debuted in 1924 in what was then a residential part of Manhattan. The company expanded throughout the 1970s and 1980s, its name becoming synonymous with luxury goods. It began trading under the "SKS" ticker symbol in 1996.

Toronto-based Hudson's Bay Co. bought Saks in 2013 for some $2.9 billion. The deal, which HBC said it was financing with debt, combined Saks Fifth Avenue with Lord & Taylor under the leadership of Baker. He took the company private in 2020. The business expanded again in 2024, when it bought Neiman Marcus and Bergdorf Goodman for $2.7 billion. Software company Salesforce (CRM) and Amazon (AMZN) took a stake in the resulting conglomerate.

Saks soon had a bigger presence on Luxury Stores at Amazon, a section of the e-commerce platform that launched in 2020. Still, Luxury Stores struggled to become a shopping destination, Vogue Business said. By 2025, HBC filed for bankruptcy in Canada, paving the way for the liquidation of several stores and other property.

Geoffroy van Raemdonck, the prior head of Neiman Marcus, is replacing CEO Richard Baker, the release said.

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"We will navigate this process together with a continued focus on serving our customers and luxury brands," van Raemdonck said in a statement. "I look forward to serving as CEO and continuing to transform the Company so that Saks Global continues to play a central role in shaping the future of luxury retail."

Saks has between $1 billion and $10 billion in both assets and liabilities, according to paperwork filed in bankruptcy court. It secured $1.75 billion in financing commitments, which will be used to shore up its balance sheet and keep stores and websites operational, a company press release said.

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