Quick Answer: Saks Global filed Chapter 11 bankruptcy on January 14, 2026. Gift cards are currently being honored—for now. If you have Saks gift cards or AmEx Platinum credits, use them immediately. Don’t wait. History shows retail bankruptcies can cut off gift card redemption with little warning.
Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman are all now in bankruptcy. If you have gift cards, store credit, or AmEx Platinum Saks benefits, here’s what you need to know—and why this matters beyond just shopping.
Bankruptcy isn’t the end—it’s often a new beginning. That’s true for companies AND for people.— Steve Rhode
What Happened
Saks Global, the parent company behind these luxury retailers, filed for Chapter 11 bankruptcy protection after missing a $100 million interest payment. The company listed $3.4 billion in debts and has been through three CEOs in two weeks.
$3.4BIn Debts Listed
$320MOutstanding Gift Cards
OpenStores Still Operating
Your Gift Cards: What to Do Now
The bankruptcy court approved Saks continuing to honor gift cards—for now. But here’s what you need to understand:
Critical Warning: When a company files for bankruptcy, it’s NOT automatically required to honor gift cards. The court approved honoring them, but this can change. If Saks terminates the gift card program, they only have to give two weeks notice.
- Don’t sit on gift cards hoping things stabilize
- Don’t assume “Chapter 11 means they’ll be fine”
- Don’t wait for a better sale—inventory is already thin
- Use gift cards and store credits immediately
- Use AmEx Platinum Saks credits now while you can
- Buy something tangible, not another gift card
AmEx Platinum Cardholders: Act Fast
The $895/year AmEx Platinum card includes $100 annually in Saks credits ($50 twice per year). American Express confirmed cardholders “can enroll and continue to use their Saks Fifth Avenue benefit at this time.”
But “at this time” is the key phrase. If Saks liquidates or the benefit program ends, that credit becomes worthless. Use it now while stores are operating and inventory exists.
Key Insight: Vendors are already withholding merchandise due to unpaid invoices. Selection is limited. The longer you wait, the less there is to buy.
Why This Story Matters to YOU
You might be thinking: “I don’t shop at Saks. Why do I care?”
Here’s why: Saks is a $3.4 billion company that couldn’t make its debt payments. If a luxury retailer with billions in assets can’t service its debt, what does that say about the system telling individuals they must sacrifice everything to pay every dollar?
Companies use bankruptcy to restructure and survive. That’s considered smart business. But when individuals consider the same tool, they’re made to feel like failures.
The Double Standard: Saks can file bankruptcy with $3.4 billion in debt and continue operating. You feel ashamed about $30,000 in credit cards. Something’s wrong with that math.
What Saks Can Teach You About Debt
Chapter 11 bankruptcy lets companies:
- Continue operating while restructuring
- Renegotiate debts with creditors
- Emerge stronger without the crushing burden
Individual bankruptcy works similarly. Chapter 7 can eliminate unsecured debt entirely. Chapter 13 creates a manageable payment plan. Both give you a fresh start—just like Saks is trying to get.
The difference? Companies don’t feel shame about it. They view it as a strategic tool. You can too.
What Saks Is Doing
- Using legal protection to restructure
- Continuing operations during process
- Negotiating with creditors
- Planning for a viable future
What You’re Told to Do
- Feel ashamed of debt
- Grind for years making minimum payments
- Cash out retirement to pay creditors
- Never consider bankruptcy
The Lesson Here
Saks didn’t wait until they had zero options. They filed when restructuring could still help. That’s the smart move.
If you’re drowning in debt, don’t wait until you’ve depleted every resource. Explore your options now, while you still have choices. Take the Find Your Path quiz to see what might work for your situation.
Key Takeaways
- Saks gift cards are being honored NOW—use them immediately
- AmEx Platinum Saks credits should be used ASAP
- Inventory is limited due to vendor payment issues
- Companies use bankruptcy strategically—you can too
- Shame is a manipulation tool, not a financial strategy
Frequently Asked Questions
Are Saks gift cards still valid after the bankruptcy filing?
Yes, the bankruptcy court approved Saks continuing to honor gift cards. However, this can change with as little as two weeks notice. Use them now rather than waiting.
What happens to my AmEx Platinum Saks credit?
American Express confirmed the benefit is still available “at this time.” However, if Saks liquidates or the program ends, the credit could become worthless. Use it while stores are operating.
Is Saks going out of business?
Not necessarily. Chapter 11 is reorganization bankruptcy—companies can emerge from it. However, liquidation is possible if restructuring fails. Stores remain open during the process.
Why do companies get to use bankruptcy but I feel ashamed to consider it?
That’s the double standard. Corporations view bankruptcy as a strategic tool for financial survival. The shame around personal bankruptcy is manufactured—it benefits creditors, not you. Bankruptcy is a legal right designed to give honest people a fresh start.
Should I learn anything from the Saks bankruptcy for my own debt?
Yes: Don’t wait until you’ve exhausted every option. Saks filed while restructuring was still viable. If you’re struggling with debt, explore all options now—including ones you might have ruled out due to shame rather than logic.
