The owner of Saks Fifth Avenue is seeking bankruptcy protection, buffeted by rising competition and the massive debt it took on to buy its rival in the luxury sector, Neiman Marcus, just over a year ago.

Saks Global, which also operates Bergdorf Goodman, has secured roughly $1.75 billion in financing, the New York company said as it filed for Chapter 11 bankruptcy Wednesday in the Southern District of Texas.

The privately held Saks Global said its stores will remain open as it restructures company debt, meaning that it will honor the programs it has for customers. Suppliers and employees will be paid, Saks said.

There are about 33 Saks stores and 36 Neiman Marcus locations, according to the company, as well as two Bergdorf Goodman stores and roughly 70 Saks Off 5th discount stores.

Retail sales better than expected

Shoppers increased their spending in November from October as holiday shopping kicked into full gear.

Retail sales rose a better-than-expected 0.6% in November, following a revised 0.1% decline in October, according to the Commerce Department. The report on Wednesday was delayed more than a month because of the 43-day government shutdown.

Retail sales rose 0.1% increase in September, but jumped 0.6% in July and August and 1% in June.

The federal government is gradually catching up on economic reports that were postponed by the shutdown.

Sales at clothing and accessories stores rose 0.9%, while online businesses had a 0.4% increase. Business at sporting goods and hobby stores was up 1.9%. But furniture and home furnishing stores posted a 0.1% dip, while consumer electronics and appliance stores saw their business unchanged in November from October.