Saks Global filed for bankruptcy, the latest sign of the ongoing struggles high-end department stores are facing.
The company owns the iconic US luxury outlet Saks Fifth Avenue, and in 2024 pushed through a $2.7 billion merger with fellow retailers Neiman Marcus and Bergdorf Goodman. But the deal left it with $2 billion debt, and profits are down as it struggles to compete with e-commerce rivals.
The department store landscape has “changed irrevocably,” The New York Times reported; brands sell directly to consumers, via the web or through their own stores, meaning Saks’ “biggest suppliers are also their biggest competitors.” Demand for luxury goods has also been uneven, with a strong period of growth ending last year, McKinsey said.