Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for bankruptcy protection late Tuesday, citing billions of dollars in debt and struggling sales. The move underscores the increasing challenges faced by luxury department stores in the United States.

The company attributed the bankruptcy filing to a combination of factors, including a strained relationship with vendors and lagging sales figures. Saks Global said it had secured approximately $1.75 billion in financing to support operations during the bankruptcy process, largely from its bondholders. The company intends to honor all customer programs, continue vendor payments, and maintain employee salaries throughout the proceedings.

Geoffroy van Raemdonck, formerly the chief executive of Neiman Marcus, will return to lead Saks Global as C.E.O. He replaces Richard Baker, who orchestrated Saks' $2.7 billion acquisition of the Neiman Marcus Group, which includes Bergdorf Goodman, in 2024. Saks has also appointed Darcy Penick, previously president of Bergdorf Goodman, as president.

The bankruptcy filing highlights the ongoing transformation of the retail landscape, particularly for department stores. Once considered iconic destinations for affluent shoppers, these establishments are now grappling with evolving consumer preferences and the rise of e-commerce. The shift towards online shopping, accelerated by the COVID-19 pandemic, has placed significant pressure on brick-and-mortar retailers to adapt and innovate.

Saks Global said it anticipates emerging from bankruptcy later this year. The company's restructuring plan will likely involve streamlining operations, renegotiating leases, and focusing on its most profitable business segments. The future of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman will depend on their ability to adapt to the changing retail environment and attract a new generation of luxury consumers.