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Good morning! Here is the latest in trending:
No signal: Verizon (VZ) promises credits as service is restored following a nationwide outage.
Fed drama: Despite a new probe, President Trump says he doesn’t have plans to fire Jay Powell.
New rules: Elon Musk’s xAI blocks Grok from undressing images after a global backlash.
It’s only mid-January, but investors have already witnessed what is likely to be one of the most notable bankruptcies of 2026. Saks Global, the luxury retailer behind brands like Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for Chapter 11 after struggling to pay its debts amid some hefty financial engineering. Many vendors have also been ringing the company over outstanding invoices, which Saks Global continues to promise will be paid under the coming restructuring. Saks Global secures $1.75B of committed capital, return of industry veterans
Backdrop: Luxury sales took off in the aftermath of the pandemic, when consumers were flush with cash and didn’t have many competing categories for their dollars. That changed fairly quickly as inflation took hold and interest rates went through the roof, restricting Saks’ shopper base to the ultra-wealthy. At the same time, major fashion houses were cutting out middlemen with their own boutiques and websites, while the costs of maintaining large physical stores became prohibitive.
Given the luxury recession, Hudson’s Bay, the Canadian owner of Saks, took a big gamble. It completed a $2.7B acquisition of its longtime rival, Neiman Marcus, with the aim of consolidating the luxury market under a single entity called Saks Global. There were funding problems at the start, especially in an environment of high interest rates and flagging sales, and their customer overlap meant little room for growth. Their integration was ultimately a failure, as well as a plan to split physical and digital properties, and it was only a matter of time before both inventory and continued financing based on its real estate dried up. Amazon challenges Saks’ Chapter 11 filing, calls equity stake ‘presumptively worthless’
Outlook: It’s been a tough market out there for luxury, but two of Saks Global’s primary competitors have been bucking expectations. Bloomingdale’s, owned by Macy’s (M), recently reported its best sales growth in three years after maintaining a strong balance sheet and pivoting to small stores with more curated inventory (Bloomie’s). Elsewhere, Nordstrom has maintained reliable relationships with suppliers, while boosting its cash flow through off-price division Nordstrom Rack. The company also went private last year to focus on long-term strategy without public market pressure.
Related tickers: Creditors of Saks Global include Kering (PPRUF) and LVMH (LVMHF), while equity shareholders include Amazon (AMZN), Salesforce (CRM), and G-III Apparel (GIII).
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What else is happening…
Bank CEOs push back against calls for credit card interest caps.
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Oil (CL1:COM) slides on apparent signals of Iran de-escalation.
U.S. to pause immigrant visas for 75 countries: See the full list.
Trump sets 25% tariff on certain chips, including Nvidia’s H200.
UnitedHealth to speed up rural Medicare Advantage payments.
Critical Metals (CRML) jumps again on drilling results in Greenland.
Boeing (BA) flagged prior engine-mount failures before UPS crash.
U.S. starts selling Venezuelan oil as war powers resolution is blocked.
Carney in China: Canada looks to reset bilateral ties with Beijing.
Today’s Markets
In Asia, Japan -0.4%. Hong Kong -0.3%. China -0.3%. India closed.
In Europe, at midday, London +0.4%. Paris -0.3%. Frankfurt -0.2%.
Futures at 6:30, Dow +0.1%. S&P +0.4%. Nasdaq +0.8%. Crude -3.6% to $59.63. Gold -0.3% to $4,622.50. Bitcoin +1.8% to $96,648.
Ten-year Treasury Yield +1 bp to 4.15%.
On The Calendar
Companies reporting today include Taiwan Semiconductor Manufacturing (TSM) and Goldman Sachs (GS).
See the full earnings calendar on Seeking Alpha, as well as today’s economic calendar.
