(Reuters) - High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday in one of the largest retail collapses since the pandemic.
The move cast uncertainty over the future of U.S. luxury fashion barely a year after a takeover that brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof.
The beleaguered luxury retailer was close to finalizing a $1.75 billion financing package with creditors that would allow its stores to remain open, two people familiar with the negotiations told Reuters earlier on Tuesday.
The company's biggest unsecured creditors are Chanel and Gucci owner Kering (PRTP.PA), opens new tab at about $136 million and $60 million respectively, the court filing said.
A retailer long loved by the rich and famous, from Gary Cooper to Grace Kelly, Saks fell on hard times after the COVID pandemic, as competition from online outlets rose, and brands started more frequently selling items through their own stores.
In 2024, parent company Hudson's Bay bet on scale by merging it with rival Neiman Marcus, creating the entity now known as Saks Global. The $2.7 billion deal was built on about $2 billion in debt financing and equity contributions from investors including Amazon (AMZN.O), opens new tab, Salesforce (CRM.N), opens new tab and Authentic Brands.