In 2026, Saks was the biggest name in high-end retail to file for bankruptcy since the pandemic. For more than a century, Saks served as a gateway for U.S. shoppers to discover coveted European brands. However, consumers can now turn to the internet and many luxury brands have stores of their own. In addition, a broad slowdown in demand for luxury goods, inflation, and tariffs made it harder for Saks to pay suppliers. This led to suppliers cutting shipments and fewer goods for Saks to sell. With less merchandise on its store racks and in its warehouses, the company couldn’t borrow as much under its asset-based loan, which is backed by inventory.
