Saks Global Files for Chapter 11: Creditors Estimated at Up to 25,000, Liabilities Up to $10 Billion

The U.S. luxury department store group Saks Global filed for Chapter 11 bankruptcy protection on January 14. As competition intensifies in the global luxury market, the company has secured approximately $1.75 billion in financing commitments and has formally entered a restructuring process aimed at rebuilding its business foundation.

The filing does not indicate a cessation of operations. According to the company’s official statement, all stores and e-commerce platforms across its portfolio—including Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman—will continue to operate as usual. Customer programs, as well as employee employment terms and benefits, are also expected to be maintained.

Unpaid balance to Chanel reaches approximately $136 million

However, the financial condition revealed in the bankruptcy filings is severe. Saks estimates that it has between 10,001 and 25,000 creditors, with total liabilities ranging from $1 billion to as much as $10 billion. The company was also required to submit a list of its 30 largest unsecured creditors by unpaid amount.

That list includes many of the world’s leading luxury brands and groups. Chanel is the largest creditor, with an unpaid balance of approximately $136 million. Other major creditors include Kering, Capri Holdings, LVMH Moët Hennessy Louis Vuitton, and Compagnie Financière Richemont, underscoring the scale of the impact across the luxury industry.

European fashion houses such as Giorgio Armani, Brunello Cucinelli, Burberry, and Dolce & Gabbana are also among the creditors, placing renewed scrutiny on the structural relationship between luxury brands and the department store model.

The lingering impact of the Neiman Marcus acquisition and management turmoil

A key factor behind Saks Global’s financial collapse is its $2.65 billion acquisition of Neiman Marcus in 2024. The deal was initially positioned as a strategic move to build a technology-driven, next-generation luxury department store group. Instead, it significantly increased the company’s financial burden.

As restructuring proceeds, concern is growing among suppliers—particularly emerging and independent brands. In some cases, Saks-related channels account for 40 to 50 percent of total sales, making payment delays or changes in commercial terms a direct threat to cash flow and inventory management.

Top 30 unsecured creditors by unpaid balance (as listed in court filings)