In a television interview with NBC New York, Giacomo Santangelo, senior lecturer of economics at Fordham University, discussed Saks Global’s bankruptcy filing, pointing to weak sales and the company’s costly 2024 acquisition of Neiman Marcus as key factors behind the retailer’s financial struggles.
Giacomo Santangelo, senior lecturer of economics at Fordham University, tells us the stores’ lagging sales, rise in online shopping, and Saks Global’s acquisition of Neiman Marcus in 2024 are costing the luxury retail giant.
“Saks spent a lot of money on Neiman Marcus, and that’s coming back to haunt them,” noted Santangelo.
But with a Chapter 11 bankruptcy, it doesn’t necessarily mean store closures. In fact, Saks Global says there are no plans to close any of its 200 stores nationwide. Ahead of the filing, Saks secured $1.75 billion dollars in new investments.
“With Chapter 11, what we’re really doing is restructuring, refinancing, and staying in business—that’s the goal,” Santangelo said.
