Sat, 10 Jan 2026

Sat, 10 Jan 2026 'Out of stock': What went wrong at luxury retailer Saks?

Saks Global, which owns Saks Fifth Avenue and Neiman Marcus, is expected to imminently file for bankruptcy protection, leaving questions about the retailer's future.
Saks Fifth Avenue, one of America's most iconic luxury department stores, is facing financial troubles that have been escalating since its acquisition of Neiman Marcus in 2024. The company's parent company, Saks Global, is expected to file for bankruptcy protection imminently due to worsening debt burdens and shifting shopping habits that benefit e-commerce rivals. Despite efforts to raise cash by selling assets, including a Beverly Hills property, the company's distress persists. The issues at Saks predate its acquisition of Neiman Marcus, with some blaming Richard Baker, the company's executive chairman who led the deal, for prioritizing new deals over business integrity. Brands that supply products to Saks have complained about delayed payments since before the merger, and the addition of billions of dollars in debt has further strained the retailer's finances. Customers are beginning to notice the effects of Saks' financial troubles, with inventory shortages and cancelled orders becoming increasingly common. Longtime vendors are frustrated by months-long payment delays and have halted shipments of their products. Finance firm Hilldun, which guarantees orders for about 130 brands that work with Saks, has stopped approving new Saks orders. The company's former CEO, Marc Metrick, resigned abruptly in January, and Richard Baker is now at the helm. Analysts question whether Saks can regain its footing after strategic missteps tied to the acquisition just over a year ago.
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