Cash-strapped luxury retailer Saks Global files for bankruptcy protection

Watch Cash-strapped luxury retailer Saks Global files for bankruptcy protection - Straight Arrow News on Dailymotion

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00:00This morning, the parent company of Saks Fifth Avenue, Saks Global, is scrambling for a financial

00:08lifeline. The company has filed for Chapter 11 bankruptcy as it runs low on cash and misses

00:13key payments. Saks had been trying to line up $1 billion in financing just to keep operations

00:19going. It recently missed interest payments to bondholders, a major red flag. In 2024,

00:25Saks acquired Neiman Marcus in a roughly $3 billion deal, hoping the combination would create

00:31a luxury powerhouse. That never materialized. As cash tightened, Saks stopped paying some suppliers,

00:38pushing the company closer to the brink. For now, the bankruptcy filing buys Saks time. Time to find

00:45a buyer for the entire business, including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

00:50Or, time to break it up, sell off pieces, pay down debt, and reorganize what's left.

00:56What's not clear this morning, what this means for the more than 200 upscale stores

01:00and the future of the iconic brands as Saks searches for new investors.