Saks Global has filed for Chapter 11 bankruptcy protection in the US, with court documents revealing the luxury retail group owes more than $700 million to its 30 largest unsecured creditors, many of them among the world’s biggest fashion and beauty houses.
The filing has raised fresh concerns across the global wholesale sector, including in Australia, where dozens of local designers rely on the US department store network for scale and international exposure.
The group, which owns Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, has told the court it expects to continue trading through the restructuring process and will pay for goods shipped after the filing. However, suppliers with outstanding invoices issued before the Chapter 11 filing now sit behind secured lenders and financiers in the repayment queue, with no certainty on how much they will ultimately recover.
The collapse is being closely watched by the Australian fashion sector.
Saks Global stocks 44 Australian brands across its department store portfolio, underlining how deeply local designers are embedded in the US wholesale system. Notable Australian fashion labels sold through Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman include Zimmermann, Scanlan Theodore, Aje, Camilla, Bec & Bridge, Rebecca Vallance, SIR., Acler, Alémais and Ksubi, alongside a long tail of emerging and contemporary brands.
Court filings from the Texas bankruptcy proceedings show that the retailer’s largest unsecured creditors include some of the most powerful groups in global luxury.
Chanel Limited is owed just over $136 million, while Kering, owner of Gucci and Balenciaga, is due around $60 million. Capri Holdings, which owns Michael Kors and Jimmy Choo, is owed $33.3 million, and Mayhoola, the majority owner of Valentino, is due $33.2 million. Richemont, owner of Cartier, is owed about $30 million, with Zegna and LVMH each owed roughly $26 million. Christian Louboutin is due around $21.5 million, Estée Lauder about $16 million, David Yurman $11.4 million and Giorgio Armani $10.7 million, with Burberry and Dolce & Gabbana each owed just under $10 million.
The creditor list also includes major technology companies, reflecting Saks Global’s reliance on digital infrastructure and advertising, with Meta Platforms owed about $12 million and Google around $9.6 million.
Saks Global’s Chapter 11 filing comes amid a broader reckoning in luxury wholesale as department stores contend with high operating costs, shifting consumer demand and brands increasingly prioritising direct-to-consumer channels.
For Australian designers, the situation underscores the risks of wholesale concentration in the US market, where consolidation has left fewer but significantly larger retail partners. While Saks has pledged to stabilise operations during the restructuring, the outcome for unsecured creditors, and the ultimate impact on both global and Australian fashion suppliers, remains uncertain.