This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: Dive Insight: The 2024 merger of Saks Fifth Avenue and Neiman Marcus Group was meant to provide scale and synergies by combining the forces of America’s three biggest luxury department store names. In a court filing Tuesday, Saks Global Chief Restructuring Officer Mark Weinsten acknowledged what several observers have noted for months, that the tie-up ...

LONDON — SKP, one of the most profitable luxury retailers globally, logged a group-wide 15 percent increase in turnover in the year ending Dec. 31, 2025, according to sources familiar with the matter, who requested anonymity. Annual turnover of its flagship project SKP Beijing recorded a 6.8 percent gain to 23.5 billion renminbi, or $3.4 billion, in the period, sources added. More from WWD Faced with industrywide headwinds, SKP Beijing’s annual turnover dropped about 17 percent in 2024 to 22 billion renm ...

Saks Global has filled a crucial position for the luxury retailer’s recovery. Cheryl Han has been named chief marketing and digital officer, a newly created position at Saks Global that will have her overseeing end-to-end marketing strategy and execution, including customer engagement and messaging, and leveraging data-driven insights to generate personalized experiences. End-to-end marketing means the entire marketing process including planning, messaging to consumers to raise brand awareness, social med ...

Core Insights - Saks Global's recent bankruptcy filing has activated a clause in its agreement with Authentic Brands Group, increasing Authentic's stake in Saks' intellectual property [1] - Authentic Brands Group now holds a 77% interest in the entity that manages the perpetual master license for the intellectual property of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, up from 51% [2] - The joint venture, Authentic Luxury Group (ALG), was established prior to Saks Global's acquisition of Neiman Marcus Group for $2.7 billion, and now includes the three luxury brands under Authentic's portfolio [3] Company and Industry Implications - The bankruptcy court may need to intervene to resolve potential conflicts regarding the control of intellectual property and the master licensing agreement [4] - A settlement is anticipated as the involved parties navigate complex issues, with significant stakes for all [5] - Simon Property Group, which invested $100 million in Saks Global, is currently writing off its investment as a loss but values the strategic benefits gained from the licensing opportunities and lease terminations [5]

Core Viewpoint - Saks Global is planning to terminate its "Saks on Amazon" partnership as it undergoes restructuring under Chapter 11 bankruptcy protection, focusing on areas expected to yield stronger growth [1][2]. Group 1: Partnership Details - The partnership with Amazon was initiated following a $475 million investment by Amazon in Saks in 2024, with Saks agreeing to sell merchandise through Amazon and pay at least $900 million over eight years [2]. - The collaboration faced challenges as Saks sought court protection, and the company had not publicly announced its intention to end the contract prior to this decision [1][2]. Group 2: Legal and Brand Concerns - Tensions between Saks and Amazon were highlighted during a court hearing, where Amazon's lawyer indicated that Saks had improperly pledged its flagship Fifth Avenue property as security for a $1.75 billion loan, which could lead to disputes [3]. - Key luxury brands associated with Saks expressed concerns about the partnership, fearing that selling through a mass-market platform could dilute their brand positioning, and they were expected to leverage the bankruptcy discussions to contest the arrangement [4]. Group 3: Strategic Shift - As part of its Chapter 11 process, Saks Global plans to close most of its Saks OFF 5TH outlets and all remaining Last Call stores, indicating a strategic shift towards luxury and full-price retailing [4][5].

Core Insights - Major luxury brands are influencing negotiations with bankrupt Saks Global to secure favorable treatment for creditors due to Saks' dependence on these brands [1] Group 1 - The involvement of luxury brands highlights their significant role in the retail ecosystem, particularly in the context of Saks' financial struggles [1] - Saks' reliance on luxury brands underscores the interconnectedness of luxury retail and brand health, impacting creditor negotiations [1]

Core Viewpoint - Saks Global is restructuring under Chapter 11, focusing on luxury and full-price retail while closing most off-price outlets [1][2]. Group 1: Store Closures - The company plans to close most Saks OFF 5TH locations and all Last Call outlets after evaluating their performance [1]. - A limited number of Saks OFF 5TH branches will remain open, primarily selling leftover stock from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman [2]. Group 2: Business Strategy - Saks Global will cease direct merchandise purchases for Saks OFF 5TH as part of its revised strategy [2]. - The CEO emphasized the need to realign the business to better serve luxury customers and enhance full-price selling across core luxury brands [2]. Group 3: Financial Support and Operations - Saks Global is utilizing the first $500 million of a $1.75 billion funding package to support operations and transformation plans, including payments to brand partners and inventory movement [4]. - Physical and digital off-price operations may still explore alternative transactions during the closing period [3][4]. Group 4: Online Operations - The online platform saksoff5th.com is winding down, with an online clearance sale having launched [3].

Core Insights - Amazon, Chanel, and LVMH are part of a creditors committee overseeing Saks Global's bankruptcy restructuring [1] - Saks Global has filed for bankruptcy with $3.4 billion in liabilities, primarily due to cash pressures from its merger with Neiman Marcus [3] Group 1: Creditors Committee - The creditors committee consists of ten members, including luxury brands and a labor union representing Saks employees [2] - The committee represents junior creditors, with Saks covering legal expenses during the proceedings [2] Group 2: Financial Obligations - Saks has requested court approval for $337.4 million in payments to "critical" vendors, essential for maintaining inventory and customer retention [3] - The retailer owes significant amounts to luxury brands: $136 million to Chanel, $60 million to Kering, and $26 million to LVMH [3] Group 3: Financing and Objections - Saks Global has secured an initial $500 million from a $1.75 billion financing package to ensure business continuity and support transformation initiatives [5] - Amazon has objected to Saks' proposed financing plan, highlighting its $475 million equity stake and revenue from the "Saks on Amazon" partnership [4]

Core Insights - Saks Global is undergoing a restructuring process following its Chapter 11 bankruptcy filing, with a focus on re-establishing relationships with vendors and ensuring timely payments for merchandise [1][4][19] Financing and Vendor Payments - The bankruptcy court has approved access to approximately $500 million out of a total of $1.75 billion in financing, providing sufficient liquidity for operations and transformation initiatives [3] - Critical vendors will receive DIP (Debtor-in-Possession) numbers for prioritized payments, allowing for a new payment schedule to be established by the court [1][5] - Post-petition invoices for merchandise will be paid under current terms of 90 days from receipt, although some vendors may receive preferential treatment [2] Inventory and Operations - Saks Global is actively working with brands to resume inventory flow and execute purchase orders for the spring season, with over $100 million in merchandise receipts released in the first five days post-filing [4] - The company is considering closing at least 20 Saks Fifth Avenue and Neiman Marcus stores, along with about 50 Saks Off 5th locations, to optimize its operational footprint [18] Management and Strategy - Geoffroy van Raemdonck has been appointed as CEO, leading a senior management team focused on restructuring and integrating operations between Saks Fifth Avenue and Neiman Marcus [7][19] - The management team includes key roles such as Darcy Penick overseeing operations and marketing, and Lana Todorovich responsible for brand partnerships [8][9][10] Vendor Relations - Senior leaders at Saks Global are in close contact with brand partners and vendors to address payment issues and other concerns during the bankruptcy process [17] - Transparency and timely payments are emphasized as critical to restoring vendor confidence and ensuring merchandise flow [4][19]

Core Insights - Saks Global has filed for bankruptcy protection, impacting suppliers and causing tensions with Amazon, a minority investor [1] - The company has secured approximately $1.75 billion to finance its operations while aiming for profitability and plans to honor customer loyalty programs and compensate vendors [2] - The bankruptcy may affect the availability of designer brands in stores and online, as many suppliers have ceased shipments due to financial distress [3][4] Financial Impact - Outstanding liabilities for Saks Global are estimated to range between $1 billion and $10 billion [2] - Major creditors include luxury brands like Chanel and Kering, but larger luxury conglomerates are expected to withstand the financial strain [6] - Smaller and medium-sized brands are at risk, with some potentially facing closure due to unpaid bills, with amounts owed ranging from $600,000 to $10 million [7] Market Dynamics - The bankruptcy follows a previous acquisition of Neiman Marcus Group for $2.65 billion, which has added significant debt amid rising competition and a slowdown in luxury spending [5] - The assortment of trendy items from niche brands is critical for Saks to retain customers, as shoppers may turn to other retailers if their needs are not met [4][5]