Saks is in talks to sell a 49% stake in Bergdorf Goodman for $1 billion
Saks Fifth Avenue’s parent company, Saks Global, is exploring the sale of a 49% stake in luxury department store Bergdorf Goodman for $1bn, according to a report from The Wall Street Journal.
The proposed deal has already drawn interest from at least four potential bidders, including Middle Eastern sovereign-wealth funds and other strategic investors. A transaction could materialize as early as 2026.
“We have initiated a strategic process to explore the potential sale of a minority stake in Bergdorf Goodman,” Richard Baker, executive chairman of Saks Global, told the WSJ. “While Bergdorf Goodman is core to our strategy, this process is intended to unlock value for our stakeholders and de-lever our business.”
Unlocking Value in Luxury
Saks Global acquired Bergdorf Goodman in 2024 as part of its $2.7bn purchase of Neiman Marcus. In parallel with the potential Bergdorf Goodman stake sale, the company is also working to offload $600m worth of real estate. Saks Global’s property portfolio is valued at around $9bn, according to sources cited by the WSJ.
Bergdorf Goodman, a Fifth Avenue landmark, is renowned for its curated selection of luxury brands such as Chanel and Hermès. Any sale would pertain strictly to the operating company; the real estate underpinning Bergdorf Goodman will remain in the hands of the founding Goodman family.
A Storied History
Founded in 1899 by Alsatian immigrant Herman Bergdorf, the company began as a tailor’s shop and grew into one of the most iconic names in U.S. luxury retail. Since 1928, the flagship store has operated from its Beaux-Arts building on Manhattan’s Fifth Avenue. Ownership shifted to Broadway-Hale stores in 1972, which later merged with Neiman Marcus.
Before Saks Global’s purchase of Neiman Marcus, a sovereign-wealth fund reportedly considered buying Bergdorf Goodman outright for $1.5bn. Current estimates place the retailer’s valuation between $1.5bn and $2.5bn.
Challenges in Luxury Retail
Despite its prime real estate and storied brand, Bergdorf Goodman and its parent company face headwinds. Saks and Neiman Marcus continue to grapple with declining luxury sales, while Saks has struggled with vendor payments.
In June 2025, Saks secured $600m in new funding from bondholders, as it pressed ahead with integrating Neiman Marcus. The merger is expected to generate $600m in synergies through back-office consolidation and reduced redundancies.
Saks has a track record of extracting value from its real estate holdings. Its Manhattan flagship store was appraised at $3.7bn a decade after the company’s $2.9bn acquisition. Meanwhile, Baker previously sold Lord & Taylor’s Manhattan flagship to Amazon for $1.15bn before the retailer was sold again and ultimately filed for bankruptcy in 2020.
If completed, the sale of a Bergdorf Goodman stake could mark the latest step in Baker’s strategy to unlock value from luxury assets while navigating a volatile retail environment.
