Saks Fifth Avenue was once — and to some, perhaps still is — an iconic luxury department store, but the actual Fifth Avenue part of the business may not be long for this world.
According to NBC News, Saks Global, the conglomerate behind Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, filed for bankruptcy protection in January amid enormous debt and piles of unpaid bills. Saks Global took on much of that massive debt in 2024 when it acquired Neiman Marcus with the help of $475 million from Amazon, but the newly formed retail conglomerate couldn't catch a break with consumers, even as the luxury retail market started gaining speed throughout 2025.
According to the BBC, sales had been declining by double digits each quarter since 2023. By late 2025, many vendors had halted shipments amid months-long payment delays, and Saks lacked the cash to make a $100 million interest payment on its $2.2 billion debt.
Affluent consumers may not be spending money at Saks or Neiman Marcus, but they're still splurging on luxury — they just aren't doing it at department stores anymore. Instead, consumers score luxury goods online or shop in person at smaller boutiques for a more intimate and personal experience. As Vogue contributing editor Jenna Rennert remarked to NBC News, department stores used to represent luxury to consumers, but have largely become unnecessary middlemen to flourishing luxury brands like Hermes or Louis Vuitton.
The 159-year-old Saks began as a men's clothing store in 1867 and rose to become one of the most prominent luxury retailers in the world. Those days are clearly over, and Saks Global must make drastic changes if it hopes to celebrate more birthdays. But with creditors knocking on the doors and a swiftly changing market, no one knows exactly what form it will take.