Big losses for Chanel, Kering and LVMH after bankruptcy of Saks
The US upmarket fashion retailer Saks Global has filed for bankruptcy, having sought protection under US bankruptcy law (Chapter 11). It has very high debt and unpaid bills that are hitting some of the biggest names in the global luxury sector.
This is one of the largest bankruptcies in luxury retail since the pandemic. On Tuesday evening, Saks Global, parent company of Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus, filed for bankruptcy in the United States. The group reported between $1bn and $10bn in assets and liabilities to the Houston bankruptcy court. The filing comes less than a year after a $2.7bn merger with Neiman Marcus, backed by Amazon, Salesforce and Authentic Brands, which was intended to create a US champion in upmarket retail.
Behind the scenes, a $1.75bn rescue plan is taking shape. According to Reuters, this includes a $1bn emergency loan led by Pentwater Capital Management and Bracebridge Capital, as well as a $250m asset-backed facility. If the restructuring succeeds, Saks Global could raise up to aother $500m to support its turnaround. The goal is to keep stores operating and avoid an outright liquidation.
Luxury brands highly exposed
However, the collapse is weakening the entire luxury supply chain. Unsecured creditors include Chanel ($136m), Kering ($60m) and LVMH ($26m). As major brands increasingly focus on direct-to-consumer sales and online retail giants take market share, Saks' debacle highlights the limits of the traditional department-store model.
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (46.7%): brands such as Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, etc.;
- watches and jewels (13%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (10.1%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, Givenchy brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (6.6%): champagnes (Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining net sales (23.6%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2025, products are marketed via a network of 6,283 outlets located throughout the world.
Net sales are distributed geographically as follows: France (8.3%), Europe (18%), Japan (7.9%), Asia (26.5%), the United States (25.6%) and other (13.7%).
