Judge Rules on Validity of Saks Fifth Avenue Gift Cards After Wednesday's Bankruptcy Filing

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. 

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.

Here's what we know about the gift cards moving forward.

Existing Gift Cards Will Be Honored, For Now

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.

The good news — at least for gift card holders — is that the bankruptcy court judge ruled Friday that Saks has permission to continue to honor 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.

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.

In fact, there's a Q&A section on Saks' website that reaffirms that point as well, stating:

Are there any changes to payment processes or gift cards?

No. We continue to accept payments as usual, including credit cards and gift cards, with no changes to how customers transact with us.

Related: All You Need to Know About the Platinum Card^® Saks Credit

What About New Saks Gift Card Purchases?

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.

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:

“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.”

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.

Credit: Saks Fifth Avenue

Bottom Line

As with anything in the award travel space, we recommend using it before you lose it! That rings true with Saks' latest financial outlook.

Yes, your Saks gift cards are safe for now, but there is no guarantee that they won't lose value in the future. A final court hearing is scheduled for February 13, so we'll bring you any updates as necessary.

What are you looking to purchase with your Saks credits?