The fall of a giant: Saks Global and the structural crisis of luxury retail in the United States

The American luxury ecosystem is going through one of the most delicate moments in its recent history. Saks Global, the group formed after the integration of Saks Fifth Avenue and Neiman Marcus, is preparing to seek protection under Chapter 11 of the U.S. bankruptcy code. This move goes far beyond a financial adjustment and raises fundamental questions about the future of high-end physical retail.

The merger that gave birth to Saks Global was conceived as a strategic play to unify the market, gain scale, and compete with emerging digital and hybrid experiential models. Yet barely a year later, the project faces a very different reality: tight liquidity, elevated debt, strained supplier relationships, and a luxury consumer who is more cautious, more selective, and far less dependent on traditional department stores.

An ambitious merger in a challenging environment

The acquisition of Neiman Marcus by Saks Fifth Avenue, completed at the end of 2024, was structured around a highly leveraged financing model. The resulting group inherited financial commitments exceeding $2 billion, with demanding maturities and limited room to absorb deviations in sales or margins.

Throughout 2025, the cooling of aspirational consumption in the United States, merged with a shift in purchasing habits among high-net-worth consumers, put the model under pressure. In-store traffic did not rebound as expected, operating costs continued to rise, and working capital constraints intensified. The outcome was predictable: delayed payments, reduced inventories, and growing distrust among brands and commercial partners.

The impact on luxury houses and the value chain

A potential Chapter 11 filing does not necessarily imply the disappearance of Saks Global, but it does open a period of deep restructuring. For luxury brands distributing through Saks, Neiman Marcus, and Bergdorf Goodman, the landscape is complex: uncertainty around outstanding payments, renegotiation of commercial terms, and a reassessment of the role these department stores should play within omnichannel strategies.

Many luxury houses have spent years strengthening direct-to-consumer channels, gaining control over customer data and proprietary experiences, while gradually reducing dependence on intermediaries. The crisis at Saks Global is likely to accelerate this shift and redefine the balance between multi-brand retail, mono-brand boutiques, and digital luxury platforms.

Iconic stores under scrutiny

One of the most sensitive aspects of the restructuring process is the future of flagship locations. Saks’ Fifth Avenue store in New York or the historic Bergdorf Goodman building are not merely retail spaces; they are cultural symbols of American luxury. Under Chapter 11 protection, the group may renegotiate leases, close underperforming locations, or divest real estate assets to restore financial stability.

This potential downsizing reflects a broader reality: luxury no longer requires extensive physical footprints, but rather carefully selected spaces that are highly experiential and aligned with a coherent brand narrative.

Beyond bankruptcy: a signal for the entire sector

The Saks Global case should not be seen as an isolated episode, but as a warning signal for the wider industry. The luxury department store model, as it was configured for decades, has reached a turning point. Scale alone no longer guarantees resilience; the decisive factors are strategic agility, true integration between physical and digital environments, and a deeper understanding of a customer who seeks authenticity, personalization, and value beyond the product itself.

For global luxury—and particularly for the U.S. market—the restructuring of Saks Global will mark a new chapter. This is not merely about preserving a company, but about redefining how, where, and why luxury will be consumed in the decade ahead.