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Tag: Bankruptcy
January 14, 2026
William Upton
Economy
News

Saks, Bergdorf, and Neiman Marcus Owner File for Bankruptcy.

PULSE POINTS

❓WHAT HAPPENED: Saks Global—the parent company of Saks Fifth Avenue (an over 100-year-old retail icon), Neiman Marcus, and Bergdorf Goodman—has filed for bankruptcy.

👤WHO WAS INVOLVED: Saks Global, Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Global CEO Geoffroy van Raemdonck.

📍WHEN & WHERE: The bankruptcy filing was made late Tuesday, January 13, 2026.

💬KEY QUOTE: “This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.” — Geoffroy van Raemdonck

🎯IMPACT: The next year will be critical for Saks Global and luxury retail properties. If it is unable to renegotiate with vendors or find a way to restructure its debt in a manageable way, one of America’s most iconic department stores could meet its end after 100 years.

IN FULL

The parent company of some of the United States’s largest luxury department stores has filed for bankruptcy, putting into limbo the future of retail properties like Saks Fifth Avenue (an over 100-year-old retail icon), Neiman Marcus, and Bergdorf Goodman. Late Tuesday, Saks Global filed for bankruptcy, citing mounting debt and a decline in certain sectors of retail sales.

Saks’s fall tracks the fates of a number of America’s once-stalwart luxury brand retailers. However, Saks Global stresses that it believes an estimated $1.75 billion in financing—primarily from bondholders—that it has secured will allow it to emerge from bankruptcy relatively unscathed.

“This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future,” said Geoffroy van Raemdonck, who is returning from Neiman Marcus as Saks Global’s CEO to oversee the bankruptcy and restructuring. Notably, the company has faced mounting competition from direct sales by luxury brands, U.S. e-commerce giants such as Amazon and eBay, as well as Chinese affordable ‘fast fashion’ online retailers like Shein and Temu.

Mounting competition, coupled with years of a sluggish economy and high inflation beginning with the former Biden government, saw radical shifts in consumer behavior. At the time, Saks Global was unable to adjust.

Another serious problem facing Saks Global was its attempt to consolidate Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman into a single, giant luxury store brand. To do this, Saks Global took on around $2 billion in debt, which ultimately proved an insurmountable fiscal burden for the company.

The next year will be critical for Saks Global and luxury retail properties. If it is unable to renegotiate with vendors or find a way to restructure its debt in a manageable way, one of America’s most iconic department stores could meet its end after 100 years.

Image by Kidfly182.

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August 5, 2025
Economy
News

Trump Fires Five Members of Controversial Govt Board Managing Puerto Rico’s Debt.

PULSE POINTS

❓WHAT HAPPENED: The Trump administration dismissed five of seven members from Puerto Rico’s federal control board, sparking concerns over the island’s financial future due to potential board malfeasance.

👤WHO WAS INVOLVED: The White House, dismissed board members Arthur Gonzalez, Cameron McKenzie, Betty Rosa, Juan Sabater, Luis Ubiñas, and remaining members Andrew G. Biggs and John E. Nixon.

📍WHEN & WHERE: The dismissals were announced Tuesday, affecting Puerto Rico’s federally appointed financial oversight board.

💬KEY QUOTE: “It’s time to restore common sense leadership,” said a White House official, citing inefficiency and secrecy within the board.

🎯IMPACT: The move raises questions about the board’s future and Puerto Rico’s ongoing financial restructuring efforts.

IN FULL

The Trump administration has removed five of the seven members of Puerto Rico’s federally appointed financial oversight board, raising alarms over the island’s economic recovery and governance. The board, established by Congress in 2016 to manage the U.S. territory’s public finances, has been overseeing efforts to restructure tens of billions in debt following years of financial mismanagement.

The dismissed members, all Democrats, included board chair Arthur Gonzalez, along with Cameron McKenzie, Betty Rosa, Juan Sabater, and Luis Ubiñas. Remaining on the panel are Andrew G. Biggs and John E. Nixon, both Republicans.

A White House official justified the dismissals by accusing the board of operating inefficiently and lacking transparency, saying it “has been run inefficiently and ineffectively by its governing members for far too long and it’s time to restore common sense leadership.”

The official also criticized the board’s spending, citing excessive consulting and legal fees as well as “exorbitant salaries to staff.” According to the same official, the decision reflects dissatisfaction with the board’s progress, which the administration believes has “prolonged Puerto Rico’s bankruptcy.”

During the Obama administration, the Financial Oversight and Management Board (FOMB) was created under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). At the time, the island had declared it could not repay its more than $70 billion in public debt, triggering the largest municipal bankruptcy in U.S. history. Currently, Puerto Rico continues to face significant hurdles, particularly with the restructuring of $9 billion in debt held by the Puerto Rico Electric Power Authority (PREPA), a process mired in legal disputes with creditors seeking full repayment.

The dismissals will likely face legal challenges. However, Puerto Rico bond expert Cate Long argues there are clear grounds for the for-cause dismissals. “The level of the Puerto Rico OBoard’s incompetence is evident to people on both sides of the aisle. Ask yourself how they could pay their executive director, Robert Mujica, $625,000 [a year] while the US president only makes $400,000 [a year],” Long wrote in a post on X (formerly Twitter). She added: “Meanwhile, the OBoard allowed Mujica to moonlight for the Greater New York Hospital Association and Mets owner Steve Cohen. This, while the [Puerto Rico] electric utility was on its knees.”

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May 19, 2025
News

Trump COVID Cocktail Pharma Firm to Buy Up 23&Me.

PULSE POINTS:

❓What Happened: Regeneron has agreed to purchase 23andMe for $256 million through a court-supervised bankruptcy sale.

👥 Who’s Involved: Regeneron Pharmaceuticals, 23andMe, Anne Wojcicki (former CEO), Joe Selsavage (interim CEO).

📍 Where & When: The deal was announced Monday; 23andMe filed for bankruptcy in March 2025.

💬 Key Quote: “We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward,” said Joe Selsavage, 23andMe’s interim CEO.

⚠️ Impact: Regeneron will acquire 23andMe’s genetic testing and research assets but not its telehealth business, while committing to uphold privacy laws and policies.

IN FULL:

Regeneron Pharmaceuticals has finalized a $256 million agreement to acquire genetic testing company 23andMe, following the latter’s bankruptcy filing earlier this year. The purchase, made under a court-supervised sale process, includes 23andMe’s genetic testing services and health research assets but excludes its Lemonaid Health telehealth division.

Notably, President Donald J. Trump received a dose of a Regeneron antibody drug in late 2020 when he was diagnosed with COVID-19. At the time, the medication was still in an experimental phase, but showed promise as a treatment for the virus.

The consumer genetic testing company 23andMe filed for bankruptcy in March 2025, citing financial difficulties. At the time, it announced plans to seek a buyer and confirmed the resignation of its co-founder and CEO, Anne Wojcicki.

Under the terms of the agreement, Regeneron, based in Tarrytown, New York, will continue to provide 23andMe’s consumer genetic services without interruption. The company also emphasized its commitment to adhering to 23andMe’s existing privacy policies and applicable laws to safeguard sensitive customer information.

“We have deep experience with large-scale data management,” said George Yancopoulos, Regeneron’s co-founder, in a statement. He added: “With the consent of individuals, we use this data to drive discoveries that benefit science and society, while maintaining a strong track record of protecting genetic data.”

Privacy concerns have surrounded 23andMe’s vast database, which includes the DNA information of approximately 15 million customers. The company’s services allow users to explore their ancestry and genetic health profiles, including identifying potential hereditary risks. Its research wing has also been involved in developing treatments for cancer, immune disorders, and other conditions.

Interim CEO Joe Selsavage expressed optimism about the acquisition, stating, “We are pleased to reach an agreement with a science-driven partner that maintains our team and helps ensure our mission will carry forward. With Regeneron’s expertise in genetic sequencing, testing, and discovery, we look forward to continuing to help people access and understand the human genome for the benefit of customers and patients.”

Image by Mike Mozart.

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April 1, 2025
Economy
News

Hooters Declares Bankruptcy.

PULSE POINTS:

❓What Happened: Hooters, a restaurant chain known for its chicken wings and servers in distinct outfits, filed for bankruptcy in Texas.

👥 Who’s Involved: The company founders, current owners, and a private equity firm are involved in the bankruptcy proceedings.

📍 Where & When: The filing was announced on Monday in Texas.

💬 Key Quote: “Our renowned Hooters restaurants are here to stay,” stated the company in its announcement.

⚠️ Impact: The filing aims to maintain operations and transfer company-owned locations to franchise status.

IN FULL:

Hooters, a restaurant chain recognized for its chicken wings and buxom serving staff, has filed for bankruptcy in a Texas court, as announced by the company on Monday. The bankruptcy agreement puts forth a plan where the company’s founders, who oversee about a third of the independent franchise locations in the U.S., are set to purchase U.S.-based company-owned restaurants from the existing private equity owner.

The restructuring plan intends to facilitate the popular chain’s ongoing operations and keep many locations open. “Our renowned Hooters restaurants are here to stay,” the company said in a statement following the bankruptcy announcement. “It’s always hang time at Hooters.”

Hooters founder Neil Kiefer stresses that the restaurant chain will undergo a significant rebrand, however. Derisively dubbed a “breastaurant,” the chain will be reimagined as a more family-friendly venue. Kiefer notes that its Clearwater, Florida flagship—where the chain was founded—has long embraced a more family-focused theme than most of its franchises across the country. “You go to some parts of the country and people say, ‘Oh, I could never go to Hooters, my wife would kill me,’” Kiefer said in a recent media interview. “That’s depressing to us. We want to change that.”

Hooters operates over 400 locations across 42 states and 29 countries. Franchised locations, including those internationally situated, are not impacted by the bankruptcy. The company plans for all remaining sites to transition into franchises following the proceedings. Rumors of the bankruptcy filing have been circulating for several months, amid recent closures of several Hooters establishments last year.

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June 18, 2024
William Upton
Lawfare

Judge May Strip Rudy Giuliani Of Right To Control His Finances.

U.S. Bankruptcy Judge Sean Lane is considering whether to strip America’s Mayor, Rudy Giuliani, of control over his finances. On Monday, the judge heard two hours of arguments from attorneys representing Giuliani and his creditors, though the court declined to issue an immediate decision on the matter.

The former New York City mayor filed for Chapter 11 bankruptcy after a jury in December awarded two Georgia election workers an absurd defamation verdict. Ruby Freeman and Wandrea “Shaye” Moss were awarded  $148 million over allegations they were defamed by Giuliani over claims the two engaged in a ballot fraud scheme in Fulton County, Georgia, during the 2020 presidential election.

“There are reasons to be very concerned here. I’m not going to beat a dead horse,” Judge Lane said before adjourning the court with no decision on the matter. The two women contend Giuliani‘s bankruptcy filing does not discharge him from paying the defamation award. However, the filing does allow the former federal prosecutor and New York City mayor to remain in control of his financial interests.

For several months, Giuliani‘s creditors have accused the Republican politician who led New York City through the 9/11 terrorist attacks of hiding his financial interests and using the bankruptcy filing to delay payment. At the Monday hearing, an attorney for the Freeman and Moss crassly accused Giuliani of conspiring to avoid payment: “He’s not a doddering 80-year-old. He is a shrewd and manipulative man. His reports are false, inconsistent, and late. His deadlines are ignored.”

Giuliani’s attorney, Gary Fischoff, contended that a full evidentiary hearing is needed before the judge can make any final decisions. He argued that the payment situation was improving and that current expenses were being paid through Giuliani‘s own money and not that flagged for creditors.

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U.S. Bankruptcy Judge Sean Lane is considering whether to strip America's Mayor, Rudy Giuliani, of control over his finances. On Monday, the judge heard two hours of arguments from attorneys representing Giuliani and his creditors, though the court declined to issue an immediate decision on the matter. show more