Saks Fifth Avenue has been a temple of luxury on Manhattan’s Fifth Avenue for more than a century – dressing generations of affluent shoppers in Chanel bags, Prada gowns, and six-figure jewels from Tiffany & Co.

But the 102-year-old retail icon is now fighting for survival after a stunning collapse that experts say was triggered by a single decision many insiders warned was reckless.

Saks Global filed for Chapter 11 bankruptcy after missing a crucial interest payment, the culmination of a risky $2.7 billion bet to buy rival luxury department store Neiman Marcus.

Daniel Gielchinsky, founder of DGIM Law, said the seeds of collapse were planted the moment the Neiman Marcus deal was completed in December 2024.

‘Saks Global filed for Chapter 11 mainly because of too much debt from buying Neiman Marcus, combined with weaker sales and cash-flow problems,’ he said.

Saks bought Neiman Marcus for roughly $2.7 billion, largely financed through borrowed money. The deal left Saks Global carrying between $3 billion and $4.7 billion in debt, along with interest payments it struggled to sustain.

Integration costs, restructuring expenses and leadership upheaval added further strain.