Saks Global enters the final week of 2025 under immense fiscal pressure as it faces a critical $100 million debt payment due on December 30. Despite a high-profile $2.7 billion merger with Neiman Marcus and Bergdorf Goodman exactly one year ago, the conglomerate is now weighing a Chapter 11 bankruptcy filing as a ‘last resort.’ The move highlights a dramatic stumble for the newly formed entity, which was intended to consolidate luxury power but has instead struggled with high-interest debt and severe inventory shortages that dampened Q4 performance.

Inventory crisis fuels market share shift

While Saks grapples with liquidity, rivals Nordstrom and Bloomingdale’s have aggressively captured the displaced luxury spend. Recent data reveals, Nordstrom’s foot traffic grew by 3.3 per cent in early 2025, contrasting sharply with a 6.0 per cent decline for Saks Fifth Avenue. The primary catalyst for this shift has been Saks' ongoing struggle to settle accounts with vendors, many of whom have halted shipments. This lack of fresh merchandise has directly impacted the ‘high-performance, experience-led’ promise of the Saks Global transformation, forcing loyal shoppers to seek available designer collections elsewhere.

Strategic rightsizing amid regional overlap

Analysts suggest, a bankruptcy filing might offer a strategic ‘reset’ button. Currently, nearly 40 per cent of the Saks and Neiman Marcus fleets are located in the same malls or high-street corridors, creating internal cannibalization. A court-supervised restructuring would allow the group to shutter underperforming locations and shed burdensome leases. Opportunities in the luxury market remain strong, and we are exploring all potential paths to secure a stable future, a company spokesperson confirmed. The industry now watches to see if emergency asset sales, such as the rumored 49 per cent stake in Bergdorf Goodman, can provide the 11th-hour liquidity needed to avoid a formal filing.