After Saks Bankruptcy, Richard Baker Says He Saved Luxury Department Stores

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by Vanessa Friedman, Lauren Hirsch, Jacob Bernstein and Kim Bhasin

February 24, 2026

AI-Generated Deep Dive Summary

Richard Baker, former chairman of Saks Global, has defended his role in the luxury department store industry following the bankruptcy of Saks Global, which owns Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. In early 2026, Saks Global filed for bankruptcy protection just 13 months after its formation, leaving the future of these iconic retailers uncertain. Baker, who orchestrated the merger between Saks and Neiman Marcus in 2025, claims he successfully navigated the challenges faced by luxury department stores during a difficult economic period. He attributes the collapse to external factors such as rising tariffs, economic stress on consumers, and a newsletter that caused vendors to withhold products due to payment fears. The restructuring of Saks Global has led to significant changes, including the closure of 57 Saks Off 5th stores and all five remaining Neiman’s Last Call locations. Hundreds of jobs have been lost, and more layoffs are expected. Major brands like Chanel, Zegna, and Akris are owed over $700 million, while smaller fashion brands reliant on these retailers face an uncertain future. These challenges come after a history of mergers involving Baker, who previously acquired Lord & Taylor in 2006 and Hudson’s Bay in 2008, both of which were later sold or liquidated. Baker’s perspective highlights the complexities of merging high-end retail brands and navigating economic downturns. While he emphasizes his success in creating a retail empire, critics argue that his strategies ultimately contributed to Saks Global’s financial demise. The story underscores broader challenges facing luxury department stores, including shifting consumer preferences, online competition, and economic instability. This situation matters to readers interested in the future of retail, particularly the luxury sector, as it raises questions about sustainability in an increasingly competitive market. Baker’s defense of his actions also sheds light on leadership decisions in high-stakes business environments. The collapse of Saks Global serves as a cautionary tale for retailers and investors alike, illustrating how even well-executed mergers can falter under external pressures.

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Originally published on NYT Homepage on 2/24/2026