Saks Global Files for Bankruptcy Amid Luxury Retail Crisis

Saks Global, the parent company of Saks Fifth Avenue, filed for Chapter 11 bankruptcy late Tuesday in the US Bankruptcy Court for the Southern District of Texas. This marks the first major retail collapse of 2026, coming just over a year after its $2.65 billion acquisition of Neiman Marcus—a deal burdened by heavy debt.

American shopping habits have shifted dramatically, undermining traditional department store models. Consumers increasingly bypass luxury retailers, opting instead for direct purchases from brands. This trend toward direct-to-consumer strategies reflects growing frustration with higher prices and perceived declines in merchandise quality.

Management turmoil preceded the filing, with CEO Marc Metrick stepping down in early January and executive chairman Richard Baker also departing. The bankruptcy signals deeper structural challenges facing luxury retail as it grapples with debt pressures and evolving consumer demand.