The bankruptcy filing lists assets and liabilities estimated between $1 billion and $10 billion. The company, which also owns Bergdorf Goodman and outlet brands such as Saks OFF 5TH, attributed its crisis to a combination of overwhelming debt and a broader downturn in luxury retail, where consumers increasingly shop directly with brands or online, trends highlighted in BBC business coverage of the situation.

Saks Global’s problems trace back to its 2024 acquisition of Neiman Marcus, a $2.65 billion deal financed largely with debt that rapidly strained the company’s balance sheet. Vendors began withholding inventory amid slow payments, leaving stores with thin assortments and further weakening sales.

Leadership has shifted amid the turmoil. Longtime CEO Marc Metrick stepped down earlier this month. Executive Chairman Richard Baker, who had briefly taken on the chief executive role after Metrick, also exited this week. They were replaced by Geoffroy van Raemdonck, the former CEO of Neiman Marcus, who now leads the company through its restructuring.

In a statement, Van Raemdonck said, “This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.”

Saks Global has secured roughly $1.75 billion in debtor-in-possession financing to keep stores open and operations running during restructuring. Major luxury brands, including Chanel and Gucci-owner Kering, are listed among the company’s largest unsecured creditors.