Glitzy department store Saks files for bankruptcy as favourite of the stars collapses
High-end department store owner Saks Global has filed for bankruptcy protection as it struggles under a mountain of debt.The group, which includes Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus, a favourite of actress Ali Larter’s character Angela Norris in hit TV show Landman, has also been hit by online competition and luxury brands opening their own stores.It has now filed for Chapter 11 bankruptcy in the US after failing to make a £75m interest payment – casting doubt over the future of one of America’s best-known stores.Opened by retail pioneer Andrew Saks in 1867, the original store built its reputation dressing Hollywood stars, society figures and well-heeled shoppers long before luxury brands sold directly to consumers online.The once-glitzy flagship on Fifth Avenue in New York became a tourist attraction in its own right and long-loved by the rich and famous, from Gary Cooper to Grace Kelly. The Radio City Rockettes perform during the Saks Fifth Avenue Holiday Light Show last year Neiman Marcus is a favourite of Ali Larter’s character Angela Norris in hit TV show LandmanBut it fell on hard times after the Covid-19 pandemic, as competition from online outlets rose, and brands started selling more items through their own stores.Saks Global was created in 2024 through a debt-fuelled deal that brought Saks Fifth Avenue under the same banner as Bergdorf Goodman and Neiman Marcus.Saks said it has now secured a £1.3bn funding package to support it through bankruptcy proceedings and has appointed former Neiman Marcus boss Geoffroy van Raemdonck its new head.The Neiman Marcus deal was designed to create a luxury powerhouse, but it saddled Saks Global with debt at a time when global luxury sales were slowing.Saks Global struggled last year to pay supplies, who began withholding stock.The thinly stocked shelves may have driven shoppers away to rivals like Bloomingdale's, which reported strong sales in 2025, compounding pressure on Saks Global.‘Rich people are still buying,’ Morningstar analyst David Swartz said last month, ‘just not so much at Saks.’A string of luxury brands were named as creditors in court filings including Chanel, Gucci owner Kering and Louis Vuitton parent LVMH.AJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
Share or comment on this article:
Glitzy department store Saks files for bankruptcy as favourite of the stars collapses
