From Robb Report · Rachel Felder · · 2m
Saks Fifth Avenue's Luxury Collapse
Saks Fifth Avenue's luxury empire unravels after bankruptcy filing.
In brief
Saks Fifth Avenue's luxury empire unravels after bankruptcy filing. Saks Global filed for bankruptcy with $3.4 billion debt, emerging as Exemplar Luxury Group with fewer stores but struggling to regain luxury shoppers' trust. Originally reported by Robb Report.
Saks Fifth Avenue's Legacy
Saks Fifth Avenue was the arbiter of elegance and luxury for generations, with Donatella Versace declaring it 'Saks is New York'.
“Saks is New York”
The 10022-SHOE Zip Code
In 2007, Saks Fifth Avenue earned its own zip code for its massive shoe department, a distinction no other store could claim.
“10022-SHOE”
Saks' Luxury Portfolio
Saks carried luxury brands including Oscar de la Renta gowns, Gucci loafers, Montblanc pens, and Dior eaux de toilettes.
“Oscar de la Renta gowns and snakeskin Gucci loafers”
Shopper Confidence
Julia Stedman, a longtime shopper, said every luxury brand was available at Saks, making it a reliable destination.
“Every luxury brand was there”
The 2007 Shoe Department
Saks' shoe department earned a zip code in 2007, becoming a national symbol of luxury retail.
“10022-SHOE”
Bankruptcy Filing
Saks Global filed for bankruptcy protection in January 2026 with $3.4 billion in debt after the Neiman Marcus acquisition.
“$3.4 billion”
Store Closures
Saks closed 21 stores, including 18 Saks Fifth Avenues and 3 Neiman Marcuses, across the U.S. and Kazakhstan.
“21 stores”
Inventory Shortages
Customers reported sparse inventory and stores looked like 'Saks Off 5th' with no new products available.
“This looks like Saks Off 5th”
Brand Payment Issues
Saks owed $136 million to Chanel, $60 million to Kering, $30 million to Richemont, and $16 million to Estée Lauder.
“$136 million to Chanel”
Retailer's Financial Strain
Saks Global inherited debt from Hudson's Bay, including a $1.2 billion mortgage on its flagship in 2014.
“$1.2 billion mortgage”
Management Changes
Richard Baker, Saks' former CEO, left after less than two weeks in charge, focusing on real estate instead.
“Richard Baker sits at the Saks Fifth Avenue flagship in Manhattan”
Payment Delays
Small brands faced payment delays, with some losing up to $100,000 and cutting staff and marketing.
“up to $100,000”
Recovery Efforts
Exemplar Luxury Group announced nearly 600 brands resumed shipping after restructuring with $1.75 billion in new capital.
“nearly 600 brands”
Consumer Trust
Shoppers like Julia Stedman said Saks' luxury appeal was gone, with no stock and only sales items available.
“Going there during that funky period, there was no stock”
Industry Shift
Bain & Company noted many U.S. shoppers are indifferent or averse to the traditional department store model.
“Many u.s. shoppers are now indifferent or averse to the format”
The Future
Saks aims to rebuild trust with luxury brands and shoppers after its bankruptcy restructuring.
“It's hard to come out of that with both your brand partners and with your consumers”
What matters most
Saks Global filed for bankruptcy with $3.4 billion debt, emerging as Exemplar Luxury Group with fewer stores but struggling to regain luxury shoppers' trust.
