Introduction to Saks Bankruptcy
Smart shoppers can still expect Saks to go bankrupt. Luxury retailer Saks Global reportedly plans to file for Chapter 11 bankruptcy as early as Sunday, sparking concern among shoppers who have gift cards and other perks at the luxury department store.
Impact on Shoppers
In particular, American Express Platinum cardholders could lose their twice-yearly $50 Saks Fifth Avenue credit if the company permanently closes operations. A company is not automatically obligated to honor gift cards after it files for bankruptcy, but there is a strong likelihood that Saks will continue to honor both gift cards and credits in the future.
Understanding Chapter 11 Bankruptcy
A Chapter 11 bankruptcy filing is designed to allow a business to reorganize and restructure its debts while continuing to operate as usual, rather than shutting down and liquidating assets as occurs in a Chapter 7 bankruptcy. This means that Saks may be able to continue operating and honoring gift cards and credits.
Precedent for Bankruptcy
Some fashionable consumers may remember the time when style giant J.Crew made a proposal for Chapter 11 bankruptcy in 2020 and continued to fill all orders and keep the stores open despite the financial fiasco. American Express told the Post that eligible cardholders “can enroll and continue to use their Saks Fifth Avenue benefits at this time.”
Redeeming Perks
Still, it’s "rational" for current cardholders to redeem perks as quickly as possible, given the potential for a run on inventory. Given the company’s current sale, which has seen prices slashed by up to 70%, there are some serious bargains to be had.
Top Picks for Shoppers
Below are top picks for those looking to snag something at Saks soon. We’ve highlighted a few favorites for under $50, meaning they’re perfect for American Express Platinum cardholders looking to redeem their perks.
Dior Addict Lip Glow
January is notoriously dry, and here’s why celebrities swear by Dior Addict Lip Glow. It’s easy to apply and extremely hydrating, providing the perfect boost of moisture for the winter months.
CLE Vitamin C Elixir
The global obsession with Korean beauty stems from its ability to produce tangible results. This potent vitamin C elixir penetrates the surface to hydrate and illuminate. It creates the sought-after glass skin effect while refining uneven textures and softening fine lines.
YSL Classic Lambskin Cover-Up
A designer handbag is always a sensible investment. If you’re not quite ready to commit to a Chanel yet, we recommend this entry-level classic lambskin cover-up. Style icons like Bella Hadid, Zoë Kravitz and Sydney Sweeney have been wearing YSL for years, showing that it is a classic that won’t go out of style anytime soon.
Leather Bag
As seen on Bella Hadid, this chic leather bag will suit any occasion all year round. One size fits all, and it’s available in three colors.
Oversized Cashmere Cardigan
An oversized cardigan is a safe choice, especially if it’s made of cashmere. Guest in Residence is known for its commitment to quality and well-crafted items. It is also available in five different shades.
