Wall Street Breakfast Saks Global’s luxury gamble fails
7 snips
Jan 14, 2026 Saks Global's ambitious luxury gamble falls flat as it files for Chapter 11 bankruptcy, burdened by massive debt. Coca-Cola pulls the plug on its Costa Coffee sale due to disappointing bids, hinting at a possible future revisit. Meanwhile, Tesla's Elon Musk reveals Full Self-Driving will become subscription-only after Valentine's Day. Other hot topics include Nvidia's AI chip exports complications and ongoing gig-economy tipping controversies. Tune in for a wrap-up on market movers, economic indicators, and more!
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Luxury Buyout Saddles Saks With Debt
- Saks Global's $2.7B Neiman Marcus deal left it heavily indebted and triggered a rapid collapse into Chapter 11.
- The company plans to focus stores where long-term potential is strongest and expects to emerge later this year.
Protect Operations With Financing And Reorganization
- Arrange debtor-in-possession financing to keep operations running during Chapter 11 and fund a turnaround.
- Reassess store footprint and leadership to prioritize long-term potential and stabilize the business.
Big Brands Are Creditor Risk
- Court filings show Saks lists between $1 billion and $10 billion in both assets and liabilities, highlighting the scale of the restructuring.
- Major luxury brands like LVMH and Chanel appear among its largest unsecured creditors, underlining vendor exposure.