What: Saks Global is said to consider the sale of a of Bergdorf Goodman, valuing the retailer at up to $2 billion, as it seeks to stabilise its finances.

Why it is important: The decision highlights Saks Global mounting financial pressures.

Saks Global is actively weighing the sale of a minority stake in Bergdorf Goodman, the flagship of its luxury portfolio, with a potential valuation between $1.5 billion and $2 billion. This move comes as the company faces significant financial strain, following its $2.7 billion acquisition of Neiman Marcus and Bergdorf Goodman, which left it with over $4 billion in debt. Despite recent refinancing efforts and a $1.8 billion asset-backed lending facility, Saks Global remains under pressure from vendors and credit agencies, with Standard & Poor’s warning of default risk within the next year. The company’s strategy to sell a stake in Bergdorf Goodman is intended to inject much-needed capital and restore confidence among stakeholders. However, the sale is complicated by the fact that only the retail operation, not the valuable Fifth Avenue property, is on offer. The situation reflects broader industry trends, as luxury retailers increasingly turn to asset sales and external investment to navigate a challenging macroeconomic environment and shifting consumer expectations.

IADS Notes: The potential sale of a Bergdorf Goodman stake comes amid Saks Global’s ongoing transformation, following its $2.7 billion Neiman Marcus acquisition in December 2024 and a subsequent strategic reset. By June 2025, Saks was exploring joint venture opportunities for Bergdorf Goodman (WWD, June 2025), while simultaneously grappling with mounting debt and vendor skepticism, as highlighted by distressed bond trading and complex restructuring deals in August 2025 (Financial Times, August 2025). Despite securing $350 million in new financing (Vogue Business, June 2025) and completing a $600 million debt swap (WWD, August 2025), operational challenges persist. Meanwhile, international investors remain active in luxury retail, as seen with Saudi Arabia’s Public Investment Fund’s 40% stake in Selfridges (WWD, October 2024) and Multiply Group’s majority investment in Tendam (Retail Detail, March 2025), underscoring the global appeal and strategic importance of marquee retail assets.

Saks Global to sell a minority stake in Bergdorf Goodman?