Local luxury shoppers at Lenox Square and Phipps Plaza received a jolt this week as Saks Global Enterprises – the parent company behind Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman – filed for Chapter 11 bankruptcy protection in Houston, Texas, on January 13, 2026.
The filing comes amid heavy debt accumulated from the company’s 2024 acquisition of Neiman Marcus Group, which combined these iconic luxury brands under one umbrella but saddled the business with billions in obligations.
Luxury Retail Shake-Up Hits Atlanta Shoppers
Saks Global, which operates nearly 200 stores nationwide including key Atlanta locations, secured $1.75 billion in new financing to support operations during the restructuring process.
For Atlanta residents, the news directly impacts two prominent high-end destinations: the Saks Fifth Avenue at Lenox Square and the Neiman Marcus at both Lenox Square and Phipps Plaza.
These stores are staples for designer shopping, from Gucci and Prada to local favorites in upscale fashion and accessories.
How Atlanta Shoppers Are Affected
Company officials emphasized that all stores, including those in Atlanta, along with e-commerce platforms, will remain open and fully operational.
The $1.75 billion package – including $1 billion in debtor-in-possession financing – is designed to ensure employees (approximately 17,000 company-wide) continue to be paid, vendors are addressed, and customer loyalty programs stay intact despite ongoing disputes and skipped interest payments in recent months.
In a leadership shift, former Neiman Marcus CEO Geoffroy van Raemdonck has stepped in as CEO of Saks Global, replacing Richard Baker.
Van Raemdonck described the moment as “defining” for the company, highlighting an opportunity to rebuild amid challenges in the luxury sector, where many brands are increasingly focusing on direct-to-consumer online sales rather than traditional department stores.
Atlanta’s luxury retail scene has long relied on these anchors to draw affluent shoppers to Buckhead malls.
While no immediate closures have been announced, industry analysts note that Chapter 11 restructurings often involve lease renegotiations and potential store optimizations in the future. For now, shoppers can expect business as usual.
“We understand the concerns this may raise for our loyal Atlanta customers,” a Saks Global spokesperson said in a statement. “Our priority is continuity – keeping our doors open, our teams working, and our commitment to exceptional service unchanged.”
The bankruptcy stems from post-pandemic pressures, intensified competition from online platforms, and integration challenges following the Neiman Marcus merger.
Despite the filing, experts point out that Chapter 11 allows reorganization rather than liquidation, offering a path for the storied brands to emerge leaner.
Atlanta shoppers are encouraged to continue enjoying their favorite luxury experiences at Lenox Square and Phipps Plaza while the company navigates this process, with an expected emergence from bankruptcy later in 2026.
Final Word
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Stay tuned to AtlantaFi.com for updates on how this national story affects our local retail landscape.