Saks Global has had a tumultuous start to 2026.

The luxury department store conglomerate officially filed for bankruptcy protection late last night, after months of swirling news speculating whether the company would actually falter. The news is a massive hit to the high-end sector and the retail industry at large, with the fate of the brand in limbo, Reuters reported.

The news comes just over a year after Saks acquired Neiman Marcus in a move that placed both luxe titans and fellow store Bergdorf Goodman in the same family. The conglomerate has been facing headwinds for some time, clawing to recover in a post-pandemic world that saw online retailers gain traction and brands focusing on sales at their own storefront. In the quarter ending June 30, 2025, Saks Fifth Ave.’s sales dropped 16 percent compared to the year prior, with Neiman Marcus and Bergdorf’s sales together also decreasing by 10 percent year-over-year.

For now, Saks Fifth Ave. store will stay open, financed by a $1.75 billion package. There will be some executive changes as well: Current CEO Richard Baker, who championed the Neiman Marcus acquisition and just started his new role at the top of this year, has stepped down and will be replaced by former Neiman Marcus CEO Geoffroy van Raemdonck. 

Currently, the company’s assets and liabilities, according to documents from the U.S. Bankruptcy Court in Texas, are worth an estimated $1 billion to $10 ​billion. The luxury behemoth will be given the chance to restructure its finances with creditors or find a new owner to lead the charge. Otherwise, Saks may need to close its doors permanently.

The company had also faltered in paying off its various vendors, thanks to its increasing debt, according to Reuters. Some of those brands include Chanel, which is owed around $136 million, Kering, with $60 million outstanding (and not without its own struggles), and LVMH, with $26 million unsettled. In the same Texas filing, Saks said its issues “are tied to inventory availability and vendor confidence, not underlying demand for luxury goods.”

The first Saks Fifth Avenue opened its doors more than a century ago, in 1924, with executives Horace Saks and Bernard Gimbel leading the charge at New York’s 611 Fifth Avenue. Over the years it became a luxury retail powerhouse, one that defined high-end shopping for decades. The fate of that behemoth, it appears, remains to be seen.