Luxury retailer Saks Global has filed for bankruptcy, preparing to reposition itself in the increasingly competitive upscale market after obtaining about $1.75 billion in financing commitments.

The New York-based private company that owns retailers Saks Fifth Avenue and Neiman Marcus said in a release Wednesday that it had filed for Chapter 11 bankruptcy in the Southern District of Texas.

The company’s top executive, Marc Metrick, stepped down earlier this month as the firm struggled with debt it took on for its $2.65 billion acquisition of Neiman Marcus in 2024. He was succeeded as CEO by executive chairman Richard Baker, who quit both roles earlier this week and was replaced as chief execute by Geoffroy van Raemdonck.

The company is also facing increasing competition as it tries to winnow down its heavy debt load, while its customers have balked against extravagant price hikes.

The company said it was “evaluating its operational footprint to invest resources where it has the greatest long-term potential.”

Saks said it did not expect its operations to be disrupted and it would continue to honor its customer programs and pay its suppliers and employees.

It said it has financing commitments of $1.5 billion from some of its creditors and another $240 million in “incremental liquidity” from its lenders.

Hudson’s Bay Co., the Canadian owner of Saks Fifth Avenue, split off the luxury retailer’s e-commerce business, Saks.com, in 2021. After acquiring Neiman Marcus three years later, Saks Fifth Avenue changed its name to Saks Global.

Global sales of luxury goods are expected to contract for the second straight year in 2026 as consumers anxious about the global economy pare back their spending, according to a study by Bain & Co. consultancy released in November.

Hudson’s Bay, Canada’s oldest company, moved to begin liquidating all but six of its stores in March 2025.