Saks’ Bankruptcy: What Shoppers Need to Know
Luxury retail giant Saks Global is reportedly preparing to file for Chapter 11 bankruptcy as early as this Sunday, leaving many loyal customers concerned about their gift cards, store credits, and shopping perks. While bankruptcy news typically signals doom for retailers, savvy shoppers shouldn’t panic just yet. This restructuring process is designed to help the company reorganize its finances while continuing normal operations, similar to what J.Crew successfully navigated in 2020. During J.Crew’s bankruptcy, the retailer maintained open stores and fulfilled all customer orders despite financial challenges, suggesting Saks might follow a similar path of business continuity.
For American Express Platinum cardholders, who enjoy bi-annual $50 Saks Fifth Avenue credits as a premium card benefit, the news raises particular concerns about losing this valuable perk. However, American Express has reassured cardholders, confirming to The New York Post that “eligible cardholders can enroll and continue to use their Saks Fifth Avenue benefit at this time.” While bankruptcy law doesn’t automatically require companies to honor gift cards or store credits, Columbia University law professor Edward Morrison believes there’s “a high probability that Saks will honor” both gift cards and credits going forward. Nevertheless, Morrison suggests it would be “rational” for cardholders to redeem their benefits sooner rather than later, as there could be a rush on inventory as news of the bankruptcy spreads.
The silver lining for fashion enthusiasts is that Saks is currently offering impressive clearance sales with discounts of up to 70% off retail prices. This presents an excellent opportunity for shoppers to invest in luxury items at significantly reduced prices. Among the most appealing options under $50—perfect for those looking to use their American Express credit—is Dior’s cult-favorite Addict Lip Glow. This hydrating lip product has gained a devoted following for combating winter dryness while adding a subtle tint of color. Another standout recommendation is Korean beauty brand AMOREPACIFIC’s Vintage Single Extract Essence, a powerful vitamin C treatment that delivers the coveted “glass skin” effect by hydrating, brightening, and refining skin texture.
For shoppers with larger budgets looking to make strategic luxury investments during this sale period, designer handbags remain a smart choice. The iconic Saint Laurent Le 5 à 7 Leather Hobo Bag has been spotted on fashion trendsetters like Bella Hadid, Zoë Kravitz, and Sydney Sweeney, confirming its status as a timeless accessory that transcends seasonal trends. Another celebrity-approved option is Coach’s stylish leather tote, which offers versatility for year-round use in three attractive color options. Fashion insiders recognize that these premium accessories typically maintain their value and relevance far longer than trendy clothing items, making them particularly worthwhile purchases during significant sales events.
For those seeking luxury comfort, the oversized cashmere cardigan from Guest in Residence represents an ideal blend of quality craftsmanship and practical elegance. Available in five different colors, this piece exemplifies the kind of investment-worthy staple that transcends seasonal fashion cycles. Cashmere remains one of the most enduring luxury materials, known for improving with age when properly cared for, making it an intelligent purchase during a major markdown event. These recommendations reflect a strategic approach to luxury shopping during uncertain times—focusing on classic designs, premium materials, and versatile pieces that will remain relevant regardless of the retailer’s ultimate fate.
The New York Post’s shopping guidance comes from over two centuries of reporting experience, combined with thorough product testing and expert consultation. Their recommendations emphasize value, quality, and practicality even when dealing with luxury goods. While Saks’ bankruptcy filing may create temporary uncertainty in the luxury retail landscape, it also creates unique opportunities for informed consumers to acquire premium products at exceptional prices. As the situation develops, shoppers should stay informed about store policies regarding returns, gift cards, and loyalty programs—but there’s no reason to avoid taking advantage of current deals, particularly on timeless luxury items that will maintain their appeal long after Saks resolves its financial challenges.
