Saks Faces Bankruptcy Decision with $100M Debt Payment Approaching Amid Ongoing Crisis
National Retail Federation President and CEO Matt Shay discusses holiday season sales expectations, buy now pay later trends and how retailers are handling the impact from tariffs on ‘Varney & Co.’
Saks could be the next department store to seek relief in bankruptcy court amid growing liquidity challenges.
Saks Global Enterprises, the parent corporation of Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman, is weighing a Chapter 11 bankruptcy filing as they contend with mounting debt, according to sources familiar with the matter reported by Bloomberg. This decision comes as the retailer faces a debt payment exceeding $100 million due at the end of December.
The company is exploring emergency financing options and may consider selling some of its assets to bolster cash reserves. However, filing for bankruptcy remains a last resort, according to insiders.
SAKS FIFTH AVENUE SHUTTING DOWN SAN FRANCISCO LOCATION AFTER NEARLY 45 YEARS
Recently, some Saks lenders engaged in confidential discussions to assess the company’s cash needs, including talks about a potential debtor-in-possession loan, a form of bankruptcy funding, as reported by various sources.
Pedestrians pass by Saks Fifth Avenue Department store in New York City. (Victor J. Blue/Getty Images / Getty Images)
Additionally, reports surfaced on Tuesday indicating that CEO Marc Metrick may be preparing to step down.
FOX Business reached out to Saks for comment.
SAKS OWNER TO BUY NEIMAN MARCUS — WITH HELP FROM AMAZON
Metrick took the helm in December 2024 when Saks Global finalized its $2.7 billion acquisition of Neiman Marcus Group. Under the terms of the deal, Saks Global added Neiman Marcus and Bergdorf Goodman to its portfolio and appointed Metrick to lead the Saks Global Operating Group, which includes Saks Fifth Avenue and Saks OFF 5TH.
Shoppers enter the Saks Fifth Avenue store on Fifth Avenue in New York. (Gabriela Bhaskar/Bloomberg via Getty Images / Getty Images)
At the time, Saks Global Executive Chairman Richard Baker stated that the deal “created an unparalleled multi-brand luxury portfolio with tremendous growth potential.”
SAKS OFF 5TH CLOSING STORES ACROSS MULTIPLE STATES
However, the company has been striving to alleviate financial pressures ever since. Over the past year, Saks has cut hundreds of jobs and shuttered stores and corporate offices. Notably, Saks Fifth Avenue, along with Saks OFF 5TH and Hudson’s Bay stores, has closed most of its locations in the Canadian market, according to Retail Insider.
Looking ahead, Saks plans to continue closing stores next year. For instance, it is already preparing to close certain Saks OFF 5TH stores starting in early 2026 as part of a broader effort to “optimize” its store presence.
An entrance to Saks Fifth Avenue inside the Galleria Tuesday. (James Nielsen/Houston Chronicle via Getty Images / Getty Images)
In September, reports indicated that Saks was exploring the sale of a minority stake, approximately 49%, in Bergdorf Goodman for around $1 billion. Sources familiar with the matter told The Wall Street Journal that there had been at least four potential bidders, with a possible deal emerging as early as next year.
National Retail Federation President and CEO Matt Shay discusses holiday season sales expectations, buy now pay later trends and how retailers are handling the impact from tariffs on ‘Varney & Co.’
Saks could be the next department store to seek relief in bankruptcy court amid growing liquidity challenges.
Saks Global Enterprises, the parent corporation of Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman, is weighing a Chapter 11 bankruptcy filing as they contend with mounting debt, according to sources familiar with the matter reported by Bloomberg. This decision comes as the retailer faces a debt payment exceeding $100 million due at the end of December.
The company is exploring emergency financing options and may consider selling some of its assets to bolster cash reserves. However, filing for bankruptcy remains a last resort, according to insiders.
SAKS FIFTH AVENUE SHUTTING DOWN SAN FRANCISCO LOCATION AFTER NEARLY 45 YEARS
Recently, some Saks lenders engaged in confidential discussions to assess the company’s cash needs, including talks about a potential debtor-in-possession loan, a form of bankruptcy funding, as reported by various sources.
Pedestrians pass by Saks Fifth Avenue Department store in New York City. (Victor J. Blue/Getty Images / Getty Images)
Additionally, reports surfaced on Tuesday indicating that CEO Marc Metrick may be preparing to step down.
FOX Business reached out to Saks for comment.
SAKS OWNER TO BUY NEIMAN MARCUS — WITH HELP FROM AMAZON
Metrick took the helm in December 2024 when Saks Global finalized its $2.7 billion acquisition of Neiman Marcus Group. Under the terms of the deal, Saks Global added Neiman Marcus and Bergdorf Goodman to its portfolio and appointed Metrick to lead the Saks Global Operating Group, which includes Saks Fifth Avenue and Saks OFF 5TH.
Shoppers enter the Saks Fifth Avenue store on Fifth Avenue in New York. (Gabriela Bhaskar/Bloomberg via Getty Images / Getty Images)
At the time, Saks Global Executive Chairman Richard Baker stated that the deal “created an unparalleled multi-brand luxury portfolio with tremendous growth potential.”
SAKS OFF 5TH CLOSING STORES ACROSS MULTIPLE STATES
However, the company has been striving to alleviate financial pressures ever since. Over the past year, Saks has cut hundreds of jobs and shuttered stores and corporate offices. Notably, Saks Fifth Avenue, along with Saks OFF 5TH and Hudson’s Bay stores, has closed most of its locations in the Canadian market, according to Retail Insider.
Looking ahead, Saks plans to continue closing stores next year. For instance, it is already preparing to close certain Saks OFF 5TH stores starting in early 2026 as part of a broader effort to “optimize” its store presence.
An entrance to Saks Fifth Avenue inside the Galleria Tuesday. (James Nielsen/Houston Chronicle via Getty Images / Getty Images)
In September, reports indicated that Saks was exploring the sale of a minority stake, approximately 49%, in Bergdorf Goodman for around $1 billion. Sources familiar with the matter told The Wall Street Journal that there had been at least four potential bidders, with a possible deal emerging as early as next year.
