Saks Global, Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks OFF 5TH / 2020s
The collapse of Saks Global became one of American luxury retail’s most dramatic corporate failures of the 2020s. Hudson’s Bay Company created the group after completing its $2.7 billion acquisition of Neiman Marcus in December 2024, combining Neiman Marcus and Bergdorf Goodman with Saks Fifth Avenue and Saks OFF 5TH. The deal was backed by major financial and technology partners including Amazon, Authentic Brands Group, G-III Apparel Group, and Salesforce, and executives presented the enlarged company as the beginning of an international luxury empire. Instead, the acquisition burdened the retailer with billions of dollars in debt just as wealthy consumers were shifting toward experiential spending and directly operated boutiques owned by individual fashion houses.
By late 2025, vendors and bondholders were questioning whether Saks could meet even its interest obligations. The group lost more than 13 percent of its second-quarter revenue, skipped a $100 million debt payment, and saw newly issued bonds trade below 30 cents on the dollar. When Saks Global filed for Chapter 11 protection in January 2026, its unpaid invoices exposed the scale of the crisis: it reportedly owed $136 million to Chanel, nearly $60 million to Kering, $26 million to LVMH, $22.2 million to Beiersdorf, $16 million to Estée Lauder, and $12.1 million to Puig. Amazon, which held more than 23 percent of the company, told the bankruptcy court that its investment was “now presumptively worthless” and accused management of repeatedly missing budgets, burning through hundreds of millions of dollars, and accumulating vast unpaid obligations to retail partners. Richard Baker, the architect of the Neiman Marcus acquisition, left shortly after taking over as CEO, while Geoffroy van Raemdonck—who had previously guided Neiman Marcus out of bankruptcy—was installed to lead the restructuring. The process ultimately eliminated much of Saks Fifth Avenue’s store network, closed dozens of Saks OFF 5TH locations and all remaining Neiman Marcus Last Call stores, laid off workers at the Miramar support center, and culminated in the company’s 2026 rebranding as Exemplar Luxury Group after a reported 75 percent debt reduction. The episode illustrated how a prestige retailer could project luxury at the storefront while its balance sheet, suppliers, landlords, employees, and investors absorbed the consequences of aggressive consolidation.
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