If you scroll social media, it may feel like more people than ever have the income for extravagant designer and name-brand purchases. This is all while millions of American households live paycheck-to-paycheck, just one emergency away from financial disaster. Despite online displays of wealth, luxury brands are struggling in the present economy. On January 14, 2026, leading luxury retailer Saks Fifth Avenue filed for chapter 11 bankruptcy protection. This was considered a pre-packaged bankruptcy- in chapter 11, top creditors have a great deal of say in how a case resolves. But here, Saks had already worked out a deal that its creditors agreed to before filing its bankruptcy petition.
Saks Fifth Avenue’s plan to emerge from bankruptcy and revitalize the company actually involves taking on a great deal of debt. A group of its senior secured bondholders is providing $1.5 billion in financing, and its asset-based lenders are providing a $240 million loan. All of this funding is designated to pay for operations and turnaround initiatives, and bondholders have committed to providing an additional $500 million in funding later this year. Saks also announced that Geoffroy van Raemdonck would be replacing Richard Baker as the company’s CEO.
Bankruptcy filings have been increasing with the cost of living, as businesses and consumers alike struggle to pay their bills. If you live in Arizona and find yourself in need of debt relief, our experienced lawyers can help you weigh your bankruptcy options. For your free phone consultation with Atlas Bankruptcy Lawyers, call 602-649-4949 today.
Saks’ Arizona Locations
There is only one Saks Fifth Avenue in Arizona, located at Biltmore Fashion Park at 2446 E. Camelback Rd., Phoenix AZ 85016. However, Saks Fifth Avenue owns and operates several other brands, including Bergdorf Goodman, Saks Off 5th, and more. Saks’ bankruptcy announcement indicated that its stores wouldn’t be closing due to the bankruptcy filing, but bankruptcy cases can always change, which might affect the future of these stores. The other stores Saks Fifth Avenue owns in Arizona are:
- Neiman Marcus at Scottsdale Fashion Square: 6900 E. Camelback Rd., Scottsdale AZ 85251
- Saks Off 5th at Phoenix Premium Outlets: 4976 Premium Outlets Way, Chandler AZ 85226
- Saks Off 5th at Promenade Shopping Center: 16215 N. Scottsdale Rd., Scottsdale AZ 85254
- Saks Off 5th at Tanger Outlets: 6800 N. 95th Avenue, Glendale AZ 85305
- Saks Off 5th at Tucson Premium Outlets: 6401 West Marana Center Blvd., Tucson AZ 85742
How Other Luxury Retailers Are Doing
Looking at the list of Saks Fifth Avenue’s locations in Arizona, it’s worth noting that most of these stores are off-price divisions at outlet malls. There may be enough luxury shoppers to keep high-end Scottsdale and Uptown locations afloat, but shoppers elsewhere in Arizona are looking for a good deal.
- Neiman Marcus: Neiman Marcus didn’t always belong to Saks Fifth Avenue. This high-end department store had been in business for more than a century when it was forced to declare bankruptcy during the COVID-19 pandemic. It used chapter 11 bankruptcy to eliminate $4 billion in debt and $200 million in annual expenses. Saks Global acquired Neiman Marcus in 2024 in a deal valued at $2.7 billion.
- Nordstrom: Nordstrom is often considered the gold standard in luxury retailers, and its consistent stock performance is proof. It has numerous locations across Arizona’s malls, and Nordstrom Rack locations are typically full of shoppers.
- Macy’s: This department store is as known for its high-end products as it is for its eponymous Thanksgiving Day parade. However, Macy’s has repeatedly been making headlines for closing numerous store locations across the country. This strategy helps Macy’s decrease operating expenses at underperforming locations and focus its efforts on profitable stores.
How Saks Fifth Avenue’s Bankruptcy Differs From a Consumer Bankruptcy Filing
Saks Fifth Avenue filed for chapter 11 bankruptcy, a complex form of bankruptcy used by major corporations with debt problems, but it is also available to consumers. There is no set time frame for chapter 11 bankruptcy- it takes as long as it takes to reach an agreement that is approved by both creditors and the court. Chapter 7 bankruptcy cases take several months to complete, while chapter 13 cases always last either 3 or 5 years. In both of the more common forms of consumer bankruptcy, creditors can appear and raise issues at the 341 Meeting of Creditors, but there are set rules for which creditors get paid and how much. Chapter 11 bankruptcy generally requires that a debtor’s top creditors form a committee that votes on the debtor’s plan to emerge from bankruptcy. This committee increases the complexity of a bankruptcy case exponentially, so chapter 11 cases typically have much higher legal fees than chapter 7 and chapter 13 bankruptcy.
There are no prepackaged deals in chapter 7 bankruptcy. The most common form of consumer bankruptcy, it wipes out unsecured non-priority debts, with a few restrictions. This can be great for someone struggling to pay off debts like credit cards and medical bills, but not as great for someone who has fallen behind on payments for secured assets, or with priority debts that need addressing. Chapter 7 debtors must fall below a certain income level to show their eligibility to file. Those considering chapter 7 bankruptcy should run the household income comparison and means test with an experienced bankruptcy professional to avoid filing a case that will inevitably be dismissed.
Chapter 13 bankruptcy is less common but a highly effective debt relief method when the debtor has income that exceeds chapter 7 eligibility limits, or has debts that wouldn’t be cleared in chapter 7 bankruptcy. A debtor must be able to pay off bankruptcy costs, secured debts, and priority debts during their payment plan to qualify. Some or all of their unsecured debts can be cleared if they complete a payment plan that pays off all mandatory debts.
Bankruptcy comes with drawbacks, like remaining on the debtor’s credit report for 7 to 10 years, and requiring that debtors complete two online credit counseling courses throughout the course of their filing. But for most bankruptcy debtors, they are completely protected from debtors by the automatic stay until their case is discharged or dismissed. That means creditors can’t proceed with foreclosures, lawsuits, repossessions, and other methods of collection that can significantly set back a debtor who might already be financially vulnerable. This benefit can be invaluable to a debtor who is facing imminent collection efforts.
Quality Bankruptcy Attorneys For Consumer Chapter 7 & Chapter 13 Debtors In Arizona
If you’re considering bankruptcy, you won’t have the option to prepackage a bankruptcy deal with your creditors, as was the case with Saks Fifth Avenue. But chapter 7 and chapter 13 bankruptcy each provide unique benefits that can fight off your creditors and give you a solid footing to turn around your financial situation. Hiring skilled bankruptcy counsel to handle your case is more convenient and affordable than you may think. Atlas Bankruptcy Lawyers offers free case evaluations by phone, an opportunity to see if you qualify for our flexible payment options starting at Zero Dollars Down. When you’re ready to take the first step, call 602-649-4949 for your free consultation with an experienced Arizona bankruptcy lawyer.
