Saks Global Bankruptcy: Chanel and Kering Top Creditor List Amid Trade Credit Risks
On January 13, 2026, luxury retail group Saks Global—owner of Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus—filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The filing comes just months after a debt-fueled merger consolidating these iconic department stores, exacerbated by pandemic-era debt, competition from direct-to-consumer brands, and operational challenges like inventory mismanagement and delayed supplier payments. Saks Global listed assets and liabilities between $1 billion and $10 billion, with approximately $3.4 billion owed to creditors overall. Executive Chairman and CEO Richard Baker has stepped down, replaced by former Neiman Marcus CEO Geoffroy van Raemdonck.
Major Creditors and Claims
Court documents reveal a heavy reliance on luxury suppliers, many of whom extended trade credit under wholesale models where Saks purchased and owned inventory outright—leaving them exposed as unsecured creditors in bankruptcy. The top 30 unsecured claims total $712 million, with an estimated 10,001 to 25,000 creditors in total. Notably, Chanel tops the list with a $136 million claim, followed by Kering (owner of Gucci and other brands) at $60 million. Other prominent luxury creditors include:
| Creditor | Claim Amount (USD) | Notes |
|---|---|---|
| Chanel | $136 million | Largest unsecured creditor. |
| Kering (Gucci owner) | $60 million | Second-largest. |
| Mayhoola (Valentino owner) | Not specified | Among top 30. |
| Richemont | Not specified | Luxury conglomerate (e.g., Cartier). |
| Zegna | Not specified | Italian fashion house. |
| LVMH | $26 million | World’s largest luxury group (e.g., Louis Vuitton). |
| Brunello Cucinelli | Not specified | High-end knitwear. |
| Burberry | Not specified | British luxury brand. |
| Meta and Google | Not specified | Tech firms for advertising/services. |
This creditor composition underscores a “structural collapse” in the luxury department store model, where brands increasingly bypass retailers for direct sales to capture higher margins and customer data.
Implications for Trade Credit Exposure
The bankruptcy tests the resilience of trade credit insurance, as unpaid wholesale receivables become unsecured claims vulnerable to restructuring losses. In wholesale arrangements (unlike concessions where brands retain ownership), suppliers face heightened counterparty risk—evident here where luxury vendors like Chanel and Kering could recover only fractions of their claims. Insurers and market participants are monitoring:
- Exposure Concentration: High claims from a few brands highlight risks in concentrated supplier relationships.
- Restructuring Outcomes: How claims are prioritized and paid during Chapter 11 proceedings.
- Model Shifts: Potential move toward concession models or stricter payment terms to mitigate future risks.
Experts note this filing illustrates “how quickly wholesale receivables can become a credit risk,” prompting reevaluation of trade credit policies in the luxury sector. Saks Global aims to restructure and emerge stronger, but failure could lead to liquidation.
Public Reaction on X
Early reactions on X focus on the luxury retail downturn, with users discussing eroded trust between brands and department stores. For instance, posts highlight Kering and Chanel’s massive exposures as signs of broader industry shifts. If this impacts Indian luxury markets (e.g., via global supply chains), local retailers in Noida might see similar pressures—let me know if you’d like more on that!