Saks Files Bankruptcy While Still Feeling Fabulous and Sparkly
KEY POINTS
- •Saks Global filed for Chapter 11 bankruptcy in Texas after failing to pay vendors for over a year.
- •Their $2.7 billion Neiman Marcus acquisition, financed by $2.2 billion in junk bonds, strained their cash flow.
- •Vendors like Jovani Fashion sued for unpaid merchandise, while brands withheld inventory impacting Saks’ spring 2025 sales.
Saks Global, proud overlord of Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus, strutted into 2025 glittering with holiday lights—and promptly declared Chapter 11 bankruptcy in Texas. After a $2.7 billion acquisition of Neiman Marcus backed by Salesforce, Amazon, and $2.2 billion in junk bonds (yes, junk), the luxury empire found itself juggling $66 million owed to vendors who hadn't been fully paid for over a year. CEO Marc Metrick’s Valentine’s Day 'I-love-you-not' note to vendors bought goodwill for 12 months, with some payments promised to start in summer, leaving brands stuck between inventory black holes and a nine-figure interest bill. Vendors like Jovani Fashion, famous for dressing Housewives, even sued Saks for $295,651, proving luxury retail drama costs more than a designer gown. While Saks’s windows went dark, the financial circus goes on, proving even luxury can face a very unglamorous hangover.
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Nothing says 'high fashion' like a $2.2 billion junk bond balloon animal popping faster than a Gucci wallet at Saks. Vendors waited a year for payment; retail rehab schmedit, it's a luxury ghost town.
Saks’ idea of 'fast fashion' apparently means a year for vendors to get paid. Employees heard about payroll from the clearance sale flyers.
Amazon and Salesforce join $2.7B luxury merger only to discover Saks’ real product is bankruptcy, meticulously gift-wrapped in black paper.
Source: Businessinsider | Published: 1/14/2026 | Author: Madeline Berg
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