Saks Is Filing For Bankruptcy: Here's What It Means For Shoppers

UPPER EAST SIDE, NY — One of the Upper East Side's most cherished fashion institutions filed for bankruptcy on Wednesday.

Saks Global — the parent company that owns local luxury stores including Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus — said it has filed for Chapter 11 bankruptcy, which is for companies that want to stay in business, as opposed to Chapter 7 bankruptcy, which is for companies that need to liquidate all of their assets.

Essentially, that means there is unlikely to be a major liquidation sale at any of the stores, as the company is not looking to close, but rather to reorganize its debts.

"This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future," Geoffroy van Raemdonck, the CEO of Saks Global, said.

Saks Global said the company has received a lifeline of $1.75 billion in order to keep the business running while it pays off debts, which it accrued, in part, while merging with Neiman Marcus in 2024.

Saks Global said its stores will remain open in person and online, though the brand is "evaluating its operational footprint to invest resources where it has the greatest long-term potential," meaning that stores with poor profits could close.

There's no word on which local stores will be closed yet. According to the New York Times, several stores are expected to close, and about half of the Saks Off Fifth stores could close.

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