Richard Baker, the executive chairman of Saks Global, bought Neiman Marcus and Bergdorf Goodman for $2.7 billion in debt in late 2024. People called it a “luxury powerhouse merger” because it was supposed to save money and use technology from Salesforce and Amazon investors. Instead, sales fell by more than 13% in the last few quarters, and annual revenue projections were cut.
After the merger, Saks had cash flow problems and couldn’t pay its suppliers on time, which caused shipments to stop and shelves to be “out of stock.” Marc Metrick, the CEO, quit in January 2026 because the company’s debt had grown to $2.2 billion. This was made worse by a slowdown in the luxury market and less spending by rich people. S&P Global said that the company didn’t have enough inventory and had a bad credit outlook.
The company wants to file for Chapter 11 as soon as this weekend and is looking for $1–1.25 billion in debtor-in-possession financing from companies like Bracebridge Capital. Without it, Chapter 7 liquidation could close stores, even the famous Fifth Avenue flagship. Reports say that customers rushed to use their gift cards.
