Saks Collapses, But Luxury Shopping Isn’t Going Away

For generations, Saks Fifth Avenue stood as a symbol of luxury. Shoppers traveled to its flagship store in New York City for designer gowns, high-end handbags, and a taste of glamour.

Now, that era may be ending.

In January, Saks Global — the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman — filed for bankruptcy protection, according to NBC News. The move came after the company struggled under billions of dollars in debt and mounting unpaid bills.

Much of that debt came in 2024, when Saks acquired Neiman Marcus with the help of a reported $475 million investment from Amazon. The deal created a retail giant, but it also added pressure. Even as the luxury market began to rebound in 2025, Saks Global could not keep up.

The BBC reported that sales had been falling by double digits each quarter since 2023. By late 2025, some vendors stopped shipping merchandise because they had not been paid for months. The company also lacked the cash to make a $100 million interest payment on its $2.2 billion debt.

For a company that has been around for 159 years, the financial troubles mark a dramatic fall.

Saks began in 1867 as a men’s clothing store. Over time, it grew into one of the world’s most recognized luxury department stores. For many shoppers, a trip to Saks was more than a purchase — it was an experience.

But the way people shop for luxury has changed.

Affluent consumers are still spending money on high-end goods. They are simply spending it differently. Instead of browsing department store floors, many shoppers now buy directly from brands online or visit smaller boutiques for a more personal experience.

Vogue contributing editor Jenna Rennert told NBC News that department stores once represented luxury to shoppers. Today, she said, they often act as middlemen between customers and brands like Hermès or Louis Vuitton — brands that now have their own stores and websites.

With direct-to-consumer sales booming, traditional department stores have struggled to prove their value.

Saks Global says it hopes bankruptcy protection will allow it to reorganize and move forward. But the future remains uncertain. Creditors are waiting, and the luxury retail world continues to evolve at a fast pace.

While the famous Fifth Avenue storefront may face an unclear future, luxury shopping itself is far from fading. The demand for designer labels, exclusive items, and high-end experiences remains strong.

The difference is where — and how — shoppers choose to spend.