Saks Global Enters Chapter 11 Amid Luxury Retail Shift (Full Transcript)

[00:00:00] Speaker 1: One of the biggest names in luxury retail filed for bankruptcy. Saks Global, the owner of Saks Fifth Avenue, just filed for Chapter 11 bankruptcy protection, becoming the first major retailer to do so in 2026. Richard Baker announced that he is stepping down as CEO of Saks Global, and former Neiman Marcus chief Geoffrey von Rheindonk will lead the company through bankruptcy proceedings. So what caused this? The company has been struggling with debt after it purchased Neiman Marcus for $2.7 billion. The goal was to create a massive luxury retailer, but according to reports, Saks wasn't paying vendors in a timely way. There's also a bigger trend at play here. American consumers are shifting their buying patterns, and many shoppers have grown disenchanted with the luxury market. Remaining luxury buyers are purchasing more directly from brands, cutting out department stores altogether.