Saks Appears to Be All Set to File Chapter 11 Bankruptcy

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Looks like Saks Global may have figured out a way to keep the lights on, at least for a little while. According to Reuters, the luxury retailer whose brands include Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus is looking to reorganize its debt and operations in Chapter 11 Bankruptcy, which they could file for as early as tonight.

This is assuming the troubled retail giant can finalize $1.75 billion in financing with their creditors, though sources within the company told Reuters they are optimistic.

The bulk of the financing is rumored to be coming from Pentwater Capital Management in Naples, Florida, and Bracebridge Capital, based in Boston. Neither group is known for their work or expertise in luxury goods. Some of Pentwater’s most significant stakes are in companies including Electronic Arts, CyberArk Software, United Health Group, Boeing, and Skechers, while Bracebridge is heavily invested in Unity Group Inc. — a U.S.-based Real Estate Investment Trust.

The money will allow Saks to continue paying their employees and vendors and restock dwindling inventory while they attempt to restructure the business. It also means that Pentwater and Bracebridge will get priority when it comes to repayment if the company is unable to pull itself out of the fire and is forced to liquidate.

Saks’ troubles started with the purchase of Neiman Marcus in 2024 by Saks parent company Hudson’s Bay Co. That deal was orchestrated by real estate investor Richard Baker, who’s private equity firm, NRDC Equity Partners, acquired Hudson’s Bay Co in 2008, which then acquired Saks Fifth Avenue in 2013. Hudson’s Bay, once a juggernaut of Canadian retail, has since shut down all of it’s physical stores and sold it’s core intellectual property rights to Canadian Tire Corporation. Baker, meanwhile, was recently elevated to CEO of Saks Global, following the sudden resignation of Marc Metrick on January 2, but is rumored to be leaving the company imminently as bankruptcy approaches.