National Retail Federation President and CEO Matt Shay discusses holiday season sales expectations, the latest buy-now trends and how retailers are handling the impact of the ‘Varney & Co.’
Saks could be the next department store to seek bankruptcy court relief amid mounting bankruptcy challenges.
Saks Global Enterprises, the parent company of Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman, is considering filing for Chapter 11 bankruptcy as it faces mounting debt, people familiar with the matter told Bloomberg. The decision comes as the retailer faces more than $100 million in debt due at the end of December, the people said.
The company has been looking at emergency financing and may sell some of its assets to shore up cash reserves, but the last resort would be to file for bankruptcy, the people said.
SAKS FIFTH AVENUE IS CLOSING SAN FRANCISCO LOCATION AFTER NEARLY 45 YEARS
Recently, some of Saks’ lenders have also held secret talks to assess the company’s cash needs, including discussions about a potential debt financing, other people familiar with the matter told the newspaper.
Pedestrians walk past the Saks Fifth Avenue Department store in New York City. (Photos by Victor J. Blue/Getty/Getty Images)
Additionally, on Tuesday, reports began to circulate that CEO Marc Metrick may be preparing to step down as well.
FOX Business has reached out to Saks for comment.
SAKS OWNER TO BUY NEIMAN MARCUS — WITH HELP FROM AMAZON
Metrick took over in December 2024 when Saks Global completed its $2.7 billion purchase of Neiman Marcus Group. Under the terms of the agreement, Saks Global added Neiman Marcus and Bergdorf Goodman to its portfolio and appointed Metrick to lead the Saks Global Operating Group, which includes Saks Fifth Avenue and Saks OFF 5TH.
Shoppers enter the Saks Fifth Avenue store on Fifth Avenue in New York. (Gabriela Bhaskar/Bloomberg via Getty Images/Getty Images)
At the time, Saks Global Executive Chairman, Richard Baker, said the deal “creates an unparalleled portfolio of multiple products with significant growth potential.”
RELEASES 5 CLOSED STORES IN MULTIPLE REGIONS
But it has been seeking to ease financial pressures ever since. In the past year, Saks has cut hundreds of jobs and closed stores and corporate offices. In fact, Saks Fifth Avenue, along with Saks Off 5th and Hudson’s Bay stores, have also closed most of their locations in the Canadian market, according to Retail Insider.
It will continue to close stores next year as well. For example, it already plans to close some Saks OFF 5TH stores starting in early 2026 as part of a broader effort to “improve” its store presence.
Enter Saks Fifth Avenue inside the Galleria on Tuesday. (James Nielsen/Houston Chronicle via Getty Images/Getty Images)
In September, reports surfaced that it was even exploring the sale of a small stake, about 49%, in Bergdorf Goodman for about $1 billion. People familiar with the matter told the Wall Street Journal that there were at least four potential bidders, and the deal could come early next year.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
