Amid a tepid retail market impacted by digital transformation and consumer behavior, Saks Global is the latest retailer to file for Chapter 11 bankruptcy on January 13, 2026.1 Saks Global is the parent company of its namesake luxury department store, Saks Fifth Avenue, along with Neiman Marcus (which it acquired in 20242 ) and Bergdorf Goodman. The filing highlights a broader trend of department stores and larger retailers struggling to keep pace3 with online commerce and customer spending.
The wake of this news begs the question of luxury brands involved with Saks: how to move forward in the face of adversity? Below are four financial insights for luxury brand CFOs to consider and how brands can respond to this development by protecting themselves.
Accounts Receivable Risk & Credit Exposure
Although the Saks Global filing is still in early stages (restructuring could occur, more stores could shutter, business may be acquired, etc.), luxury brands that sold product in its stores should reassess any outstanding payments they may have.
In addition, they need to consider the likelihood of merchandise recovery. Whether brands operated with a concession (a “store within a store,” meaning a brand-operated retail space located inside a Saks-owned department store) or were wholesale distributors, it is critical for brands to consider booking full provisions given the uncertain stage of the bankruptcy. Best practice is to review the credit ratings of creditors on a regular basis, as even established brands could face downgrades.
Inventory Handling, Return Agreements, & Reputational Risk
What comes of the merchandise still on store floors? Will it be sold at a discount? Will some brands buy it back? Brands will need to review their contractual agreements and determine their strategy for handling merchandise still on the store floors, as well as estimate potential product returns. If a reasonable estimate can be made, the expected sales returns should be accrued in the financial statements.
Luxury brands, in particular, tend to avoid discounting, as selling products at reduced prices can negatively affect long‑term brand image and reputation. On the other hand, buying back inventory from Saks Global has an immediate financial impact, and depending on the condition of the merchandise, some items may not be resalable.
Brands will need to weigh their next steps carefully with brand reputation in mind. This becomes both a financial and reputational decision for luxury brands, especially if liquidation methods risk diminishing perceived brand value.
Provisioning & Financial Statement Implications
On the heels of returned or unsellable inventory, CFOs may need to oversee write-offs that impact the profit and loss (P&L) statements for their company. Thus, they should prepare for large provisions on receivables, potential losses on products that cannot be resold as mentioned previously, and broader impacts on financial reporting, especially during close for the fiscal year.
Risk Mitigation, Legal Counsel, & Peer Insights
More practical steps that retailers can take to protect themselves include regular credit checks, seeking third-party or in-house legal counsel, and peer networking. CFOs of these brands should consistently monitor retailer credit ratings and engage counsel to help them prepare for and respond to financial events.
Companies also need to consider their size in relation to their strategy. Larger brands can exert more influence over retailers, while smaller brands may lack bargaining power and face greater collection exposure.
Furthermore, regular communication among luxury brand CFOs and with legal professionals can provide beneficial information sharing of best practices to help weather the storm. To that end, consulting services in artificial intelligence (AI) and data analytics, as well as CFO & Business Consulting services from firms such as Forvis Mazars, can support luxury brands in elevating customer experience, managing risk exposure, and planning for future market shifts.
Next Steps
The Saks Global bankruptcy emphasizes the need for CFOs and brand leaders to take a more active approach to preparedness and protection. Actions such as credit monitoring, contractual exposure, and risk mitigation can help brands prepare strategically. The bankruptcy also underscores the delicate balance between protecting brand value and making practical choices around inventory returns, liquidation risk, and sustainability pressures. As this filing unfolds, brands that strengthen their direct‑to‑consumer strategies, lean on legal and consulting support, and sharpen their financial visibility may be better positioned to navigate the markets ahead.
For more information, please reach out to a professional at Forvis Mazars.
- 1“Saks Global, century-old high-end department store chain, files for bankruptcy,” cbsnews.com, January 14, 2026.
- 2“Parent company of Saks Fifth Avenue to buy Neiman Marcus for $2.65 billion,” apnews.com, July 4, 2024.
- 3“Hudson’s Bay files for creditor protection, intends to restructure,” cbc.ca, March 7, 2025.