Saks Global Enterprises, the parent company of the luxury stores Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, as well as the off-price stores Neiman Marcus Last Call and Saks Off 5th, officially filed for Chapter 11 bankruptcy in the Southern District of Texas on Tuesday (January 13) following months of speculation, Business Insider reports.

The filing states that the company owes millions to several of the biggest names in luxury fashion including $136 million to Chanel; $59 million to Kering, the parent company of Gucci; and $33 million to Capri Holdings, the parent company of Michael Kors. Saks Global Enterprises' potential bankruptcy was previously reported amid signs that its $2.7 billion deal to acquire Neiman Marcus in 2024, which was reportedly financed by $2.2 billion in high-interest bonds, left it facing financial struggles.

Last week, the Wall Street Journal reported that Saks Global Enterprises was closing in on a $1.25 billion bankruptcy financing package. A group of bondholders led by Bracebridge Capital and Pentwater Capital Management LP had reportedly proposed the debtor-in-possession-loan, which will be used by Saks Global Enterprises to fund its Chapter 11 bankruptcy proceedings, while the group is ultimately expected to take control of the company, the sources confirmed.

Saks Global's management team will reportedly be terminated as part of a stipulation of the bondholder-group loan agreement, one of the sources confirmed. Pacific Investment Management Company, a large bond fund that was a large owner of Neiman Marcus prior to its 2024 sale to Saks, has also reportedly submitted a competing offer to finance the business.

Saks Global Enterprises announced that Richard Baker, the company's executive chairman, would take over as CEO while also retaining his prior role in a press release shared amid bankruptcy speculation earlier this month.

"I look forward to continuing to work with our highly experienced management team, valued partners, and other stakeholders to secure a strong and stable future for our company. Across Saks Global, with our deep industry expertise, well-established relationships within the luxury sector, and talented employees, we will strengthen our position so that we can capitalize on the many opportunities we see for our company in the luxury market," Baker said.

The announcement followed multiple reports of the company facing potential bankruptcy. Saks Global Enterprises was reported to be facing more than $100 million debt payment due at the end of December, sources with knowledge of the situation confirmed to Bloomberg at the time.

Ragini Bhalla, head of brand and spokesperson for Creditsafe, also painted a gloomy picture of the company's financial situation in an email to TheStreet citing publicly available financial information.

“Saks Inc.’s Days Beyond Terms (DBT) data over the past twelve months reveals a persistent and troubling pattern of late payments that point to sustained cash flow distress. DBT measures how many days late a company pays its bills. Throughout the entire year, Saks’ DBT has hovered well above the industry average of 10-12 days, ranging from a low of 27 in November 2024 to a high of 41 in January 2025 and March 2025,” she wrote.

“This indicates that Saks has consistently taken nearly a month or more to pay its suppliers late,” Bhalla added.

Multiple sources with knowledge of the situation confirmed to Puck Media Company that Marc Metrick, the executive who oversaw Saks Global Enterprises' acquisition of Neiman Marcus Group, was expected to exit the company prior to the announced decision. Saks Global Enterprises has, however, publicly denied any bankruptcy concerns.

“We are making strong progress to reduce outstanding payments, invest in our transformation and drive improved performance," the company said in a statement to TheStreet. "It is important to note that a restructuring is not being contemplated. We have sufficient liquidity after raising $600 million in financing this summer from existing bondholders. At the same time, with inventory levels normalizing and the significant synergies from our integration, we expect performance to improve through the holiday season and into 2026."

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