The parent of Saks Fifth Avenue and Neiman Marcus filed for bankruptcy protection, barely a year after an ambitious bet on luxury department stores brought the two storied retailers together in what was supposed to be a powerhouse deal.
The swift unraveling of Saks Global shows the perils of doubling down on department stores, whose golden days are long past. The plan behind the $2.7 billion merger was to create a luxury juggernaut, while cost savings from the deal were expected to help Saks dig out of a deepening hole of delayed payments to suppliers.
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