It’s the end of an era, some might say.
2026 might be the beginning of the end for some of New York City’s most beloved luxury department stores.
As of Wednesday, Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, has filed for Chapter 11 bankruptcy.
Before high-end shoppers go into a frenzy, it’s important to understand what exactly this means.
By filing for Chapter 11, the high-end department store conglomerate can take a breather to reorganize its finances and operations.
Saks was able to secure $1.75 billion in financing, and revenue from Saks being sold on Amazon also helps to keep its stores open for the time being.
This might sound hopeful, but Saks will most likely use that money to settle its $3.4 billion debt, which is largely due to the December 2024 Neiman Marcus acquisition.
Saks Global is in severe debt — many wonder if it’ll be able to pull itself out of it. Brian Zak/NY Post
To add insult to injury, Saks Global’s estimated assets and liabilities range from $1 billion to $10 billion, according to documents filed in the U.S. Bankruptcy Court in Houston, Texas.
Considering the high-end department store conglomerate operates approximately 70 luxury store locations across the U.S., as stated in court documents, it’s safe to say the retailer will soon be terminating some of its expensive leases and potentially shuttering stores to recoup some money.
Already, nine Saks Off 5th stores across the country closed, with several in the tri-state area, including the Upper East Side (125 E 57th Street) location.
And word on the street was that Saks was already thinking of closing approximately 20 stores across the U.S., according to WWD, before the bankruptcy news broke.
It’s speculated that many of Saks Global’s stores will have massive sales before their closing. AFP via Getty Images
So what can shoppers expect from this disappointing fashion news? Empty shelves and some potential major sales.
Shopping on his lunch break for Chanel cologne, Upper East Sider Joe, 28, was shocked by the store’s skimpy inventory.
“They’re out of stock. They said they ran out of stock a few times. I don’t know if that’s related to the bankruptcy but you can’t buy it online either. So I can’t spend money here,” he explained.
Joe (L) and his co-worker Hannah (R) were disappointed by both the news of Saks’ Chapter 11 filing and the Midtown location’s low inventory. Brian Zak/NY Post
“All their perfumes have been either out of samples or out of stock [completely], for the last few months, Joe’s co-worker Hannah, 27, from Brooklyn, who joined him on his shopping adventure, told The Post.
While it’s unknown which of these department stores, that have become NYC institutions in their own right, will shutter — empty shelves at the Midtown location could indicate a major sale is in the near future before it potentially shuts its doors for good.
This bankruptcy news is disappointing to many high-end shoppers who viewed Saks stores as their go-to shopping destination. WireImage
When the main Saks Off 5th NYC location closed, the store advertised massive sales up to 85% off, so it’s expected that other closing Saks Global stores will follow suit.
As of now, Saks Fifth Avenue (611 5th Avenue) has 70% off designer sale signs around the store. It’s unknown if these sales are linked to the bankruptcy or if it’s simply a post-holiday get-rid-of-inventory plan.
Joe and Hannah even noticed a skeleton crew at this location. “Everything’s open, no one’s at the counters,” Hannah explained.
There is no news just yet on the operations of these stores’ online sites, but it can be assumed that sales will also soon pop up.
“It’s tough. I feel like most shopping is going online, but there is something about going in person to try stuff, buy stuff — it’s the whole atmosphere. I just feel like, if you lose it, everybody’s gonna miss it once it’s gone,” Joe said.
Bengali (Bangladesh) · 
English (United States) ·