Saks to File for Bankruptcy Within Days
Update: Saks Global Enterprises filed for bankruptcy to address mounting losses and a substantial debt load. The company, which operates its Saks Fifth Avenue stores along with Bergdorf Goodman and Neiman Marcus, entered Chapter 11 bankruptcy in Texas, it said in a statement. Saks expects to continue operations and has asked the court for authorization to continue honoring customer programs, including gift cards and store credits, during the restructuring process. If you have an American Express Platinum card, the $50 semi-annual credit is still active. However, because the future of the partnership is uncertain, I would try and use it right away if you can find anything worth buying. Read more at Bloomberg.
Saks Global is preparing to file for bankruptcy. This was already rumored in recent weeks, but it is now reported that the filing could come within days after the company missed an interest payment on the debt it took on to buy Neiman Marcus.
The information comes from people familiar with the matter, as reported by WSJ. Saks has struggled financially since taking on the debt burden in 2024, and its delays in paying vendors have contributed to weaker offerings and sales. You have probably noticed that too when looking to use that Amex Platinum card Saks credit. Many cheaper items at least are usually out of stock.
Saks failed to make an interest payment of more than $100 million that was due Tuesday. Saks sought to raise cash through asset sales, such as selling a Beverly Hills property. It has also explored selling a 49% stake in Bergdorf Goodman, the high-end department store acquired as part of its $2.7 billion merger with Neiman Marcus. Saks is now in talks with its creditors about financing for the bankruptcy process, the people said.
It’s not clear what will happen when Saks files for bankruptcy, but it’s probably best to start looking to use that $50 Saks credit now.
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