{"id":243623,"date":"2026-01-16T22:02:54","date_gmt":"2026-01-16T22:02:54","guid":{"rendered":"https:\/\/awardwallet.com\/blog\/?p=243623\/"},"modified":"2026-04-08T14:31:55","modified_gmt":"2026-04-08T14:31:55","slug":"saks-bankruptcy-filing-impact-on-gift-cards","status":"publish","type":"post","link":"https:\/\/awardwallet.com\/news\/amex-membership-rewards\/saks-bankruptcy-filing-impact-on-gift-cards\/","title":{"rendered":"Judge Rules on Validity of Saks Fifth Avenue Gift Cards After Wednesday’s Bankruptcy Filing"},"content":{"rendered":"

Update 2\/13\/2026: A further court ruling requires that closing stores must accept gift cards “for the first 15 days following the initiation of the Store Closing Sales.” After that, closing stores are no longer required to accept gift cards.\u00a0<\/strong><\/p>\n

For the past few weeks, rumors have circulated that Saks Fifth Avenue was on the verge of bankruptcy. On Wednesday, Saks Global — the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus — filed for Chapter 11 bankruptcy protection.<\/p>\n

While we're not typically in the business of covering the financials of retailers, this is an important development for\u00a0 American Express Platinum Card\u00ae<\/sup><\/a> cardmembers. That's because cardmembers can enroll to receive up to $100 in annual statement credits at Saks Fifth Avenue<\/a> — one $50 credit in January-June and one $50 credit in July-December.<\/p>\n

One popular way to use this credit is to buy Saks Fifth Avenue gift cards. And if you're sitting on a stash of Saks gift cards, you might be worried that they have suddenly lost their value.<\/p>\n

Here's what we know about the gift cards moving forward.<\/p>\n

Existing Gift Cards Will Be Honored, For Now<\/span><\/h2>\n

Saks currently has an outstanding balance of about $320 million in issued gift cards. Because having gift cards makes customers creditors, the company needs permission to pay them. Saks' other creditors would be happy for that $320 million to no longer be valid — or at least put on hold while the bankruptcy proceedings continue.<\/p>\n

The good news — at least for gift card holders — is that the bankruptcy court judge ruled Friday that Saks\u00a0has permission to continue to honor<\/a> its gift card program without violating bankruptcy law. That means Saks gift card holders can redeem their card balances at both Saks and Saks OFF 5TH locations as normal.<\/p>\n

The company even said in court documents that honoring gift cards “is essential for maintaining customer goodwill” and the “negative impact of refusing to honor the gift card programs” would jeopardize relationships with its customers.<\/p>\n

In fact, there's a Q&A section on Saks' website<\/a> that reaffirms that point as well, stating:<\/p>\n

Are there any changes to payment processes or gift cards?<\/em><\/p><\/blockquote>\n

No. We continue to accept payments as usual, including credit cards and gift cards, with no changes to how customers transact with us.<\/em><\/p><\/blockquote>\n

Related: All You Need to Know About the Platinum Card\u00ae<\/sup> Saks Credit<\/span><\/a><\/strong><\/p>\n

What About New Saks Gift Card Purchases?<\/span><\/h2>\n

If you haven't yet used your $50 Saks credit in 2026, you're not out of the woods (yet). This is where it gets tricky. While Saks' gift card program will continue — for now — there's still a risk that the gift cards lose their value later.<\/p>\n

We reached out to Kara Bruce — a law professor and bankruptcy expert at The University of North Carolina at Chapel Hill — about what cardmembers should do:<\/p>\n

“People who have gift cards with a company in bankruptcy shouldn't hold on to them,” Bruce said. “If I were a Platinum cardholder, I'd keep that in mind and possibly buy some shoes instead of a gift card.”<\/em><\/p><\/blockquote>\n

Moreover, if Saks were to terminate their gift card program, Friday's order notes that the company would have to file a two-week notice, at a minimum, with the court.<\/p>\n

\"Credit:
Credit: Saks Fifth Avenue<\/em><\/enter><\/figure>\n

Will Amex Replace The Existing Saks Credit?<\/span><\/h2>\n

This we don't know, so we reached out to Amex for comment. An American Express spokesperson simply confirmed:<\/p>\n

Eligible American Express Card Members can enroll and continue to use\u202ftheir Saks Fifth Avenue benefit at this time.<\/em><\/p><\/blockquote>\n

As it stands currently, to take advantage of this benefit, you need to enroll in the offer<\/a> first. Once enrolled, you can earn up to $100 back annually at Saks, dished out in two pieces:<\/p>\n