Saks Global, a prominent luxury retail chain, has initiated bankruptcy proceedings as part of a strategic overhaul aimed at bolstering its position within the fiercely competitive high-end market. The company has secured approximately $1.75 billion in financing to aid this transformation.

Headquartered in New York, the private entity behind Saks Fifth Avenue and Neiman Marcus announced on Wednesday its Chapter 11 bankruptcy filing in the Southern District of Texas. This move signifies a major step in its restructuring efforts.

Earlier this month, Marc Metrick, the company’s former leader, resigned amid challenges stemming from the heavy debt incurred during the $2.65 billion purchase of Neiman Marcus in 2024. Richard Baker, who briefly took over as CEO after serving as executive chairman, also stepped down, with Geoffroy van Raemdonck stepping in to fill the role.

Confronted with mounting competition and a substantial debt burden, the retailer is navigating a landscape where customers are increasingly resistant to sharp price increases.

The company expressed its commitment to reassessing its operations to strategically allocate resources in areas that promise the most sustainable growth.

Saks said it did not expect its operations to be disrupted and it would continue to honor its customer programs and pay its suppliers and employees.

It said it has financing commitments of $1.5 billion from some of its creditors and another $240 million in “incremental liquidity” from its lenders.

Hudson’s Bay Co., the Canadian owner of Saks Fifth Avenue, split off the luxury retailer’s e-commerce business, Saks.com, in 2021. After acquiring Neiman Marcus three years later, Saks Fifth Avenue changed its name to Saks Global.

Global sales of luxury goods are expected to contract for the second straight year in 2026 as consumers anxious about the global economy pare back their spending, according to a study by Bain & Co. consultancy released in November.

Hudson’s Bay, Canada’s oldest company, moved to begin liquidating all but six of its stores in March 2025.