Julie Morgan

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Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning.

It's good to have you here on this Wednesday, January 14th.

I'm Julie Morgan.

A high-end retail gamble backfires, a coffee sale falls apart, and Tesla makes a big change to FSD.

Saks Global has filed for Chapter 11 bankruptcy just a year after buying Neiman Marcus for $2.7 billion, a deal that left the luxury retailer buried in debt.

This marks one of the biggest retail bankruptcies since the pandemic.

The company is reviewing its store and business footprint to focus on areas with the strongest long-term potential.

Court filings show Sachs lists between $1 and $10 billion in both assets and liabilities.

Several luxury brands are among its largest unsecured creditors, including LVMH and Chanel.

Sachs has lined up about $1.75 billion in financing to keep operations running during bankruptcy and to support a turnaround.

The company expects to emerge from Chapter 11 later this year.

Sachs also named a former Neiman Marcus CEO as its new chief executive.

Sachs Global was formed after Hudson's Bay bought Neiman Marcus in 2024,

bringing Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus together.

But the company was already facing a slowdown in luxury spending and payment delays to vendors even before that deal.