Rich Americans with $895 Amex cards panic as Saks perk at risk after bankruptcy
On your marks, get set, shop!
In September, Amex upped the annual fee for its premium Platinum Card from $695 to $895. But many customers didn’t flinch, arguing the benefits still outweighed the steep cost.
Now, one of those perks is under threat. Alongside dining credits, airport lounge access, and generous points that can be used for travel, cardholders get $100 a year in Saks Fifth Avenue credits.
It is a major selling point for the exclusive card, because its users — who are typically ultra-rich and seeking luxury — shop at the upscale department store.
On Tuesday, parent company Saks Global filed for bankruptcy. It came just a year after a high-profile deal brought Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus together in a bid to build a luxury retail powerhouse.
Saks insisted on Wednesday that its stores would remain open after securing $1.75 billion to pay debts and naming a new chief executive.
But Amex cardholders are panicking. Andrea Smith, a DJ from New York, said: 'Honestly, I’m a bit worried the perk could disappear.
'Twice a year I get to treat myself to something without feeling guilty whether that’s make-up, underwear or, just before Christmas, a skirt I’d had my eye on for a while. I’m actually on the verge of pulling the trigger on some moisturizer now, just in case.'
American Express revamped its Platinum Card with all-new benefits that the company says adds up to $3,500 worth of perks. The Platinum Card is perfect for travelers who will benefit from earning points on travel and using cardholder credit to pay for flights and hotels
Christmas lights glow outside the flagship Saks Fifth Avenue store in New York, a holiday tradition that has drawn crowds for decades.
Luxury department store conglomerate Saks Global filed for bankruptcy protection late Tuesday, marking one of the largest retail failures since the pandemic (pictured: models pose in holiday dresses from Saks Fifth Avenue)
Ahead of the filing, Amex confirmed that 'eligible American Express card members can enroll and continue to use their Saks Fifth Avenue benefit.'
The fear of Saks going out of business, or being forced to pull the Amex perk to cut costs, has prompted cardholders to rush to use their credits.
They are likely to find deals when they do. Saks is tipped to shut half of its stores, which would lead to clearance deals.
Even ahead of the filing, the retailer was advertising discounts of up to 70 percent off under its winter sale.
Deals included an $800 Toccin jacket for under $300, a $1,100 pair of Givenchy pumps for less than $700, and a $4,900 Brunello Cucinelli bag for around $2,900.
Long favored by wealthy and high-profile shoppers, Saks never fully rebounded from the pandemic as online competition intensified and luxury brands increasingly shifted sales to their own stores.
Last year, the company struggled to pay suppliers, prompting some vendors to withhold inventory.
Former Neiman Marcus chief executive Geoffroy van Raemdonck will succeed Richard Baker, the architect of the acquisition strategy that left Saks Global heavily indebted.
Shoppers are eager to know whether the bankruptcy filing will translate into deep discounts on luxury goods
Shoppers are eager to know whether the bankruptcy filing will translate into deep discounts on luxury clothes and accessories
The Radio City Rockettes are seen backstage ahead of the Saks Fifth Avenue Holiday Light Show and Window Unveiling in New York City on November 24, 2025
Baker, the company's executive chairman, had assumed the CEO role only at the beginning of the year.
Court filings show Saks Global's assets and liabilities are each estimated at between $1 billion and $10 billion.
The original Saks Fifth Avenue store — founded in 1867 by retail pioneer Andrew Saks and known for its exclusive brands such as Chanel, Cucinelli, and Burberry, as well as its holiday light displays — has long been a fixture of American luxury retail.
The bankruptcy process is intended to give the company time to negotiate a debt restructuring with creditors or seek a buyer. Without a deal, Saks could be forced to close. In its filing, the company said weak demand was not the issue.
'The company's challenges are tied to inventory availability and vendor confidence, not underlying demand for luxury goods,' Saks said.
Its flagship on Fifth Avenue in New York became a tourist attraction in its own right, famous for its elaborate holiday windows and front-row access to the world's biggest designers.
But in recent years, Saks has struggled to adapt to a luxury market transformed by internet shopping and brand-owned stores.
The crisis marks a dramatic turn for a retailer that only last year pitched a bold comeback plan built around its $2.7billion takeover of rival Neiman Marcus.
But the deal hasn't paid off for either retailer. Since the merger, Saks closed a store in San Francisco and Neiman Marcus shuttered a flagship in Dallas.
