Saks Global Files for Chapter 1 Bankruptcy

Saks Global’s high-wire financial act is finally over. 

The company, which just over a year ago bought Neiman Marcus Group for $2.7 billion, filed for Chapter 11 bankruptcy late Tuesday — scrambling high-end retailing and leaving both vendors and lenders holding the bag.

Saks Global went to court with $1.75 billion in financing from a group of its bondholders, which will help keep the lights on during the process and, at long last, should provided more certainty for vendors that they’ll be paid for what they ship.

It was a fast fall and one sped up by a ton of debt, deteriorating relations with designers and a by a vision of the luxury department store model that never quite had enough money to take off.

Now, Geoffroy van Raemdonck, who was chief executive officer of Neiman Marcus Group when Saks Global bought the business, is taking the reins as chief executive officer and will steer the company through the complicated court process. He succeeds Richard Baker, who stepped down from his role as executive chairman and CEO of Saks Global.

WWD was first to report Saturday that Baker was out and that the company was negotiating with van Raemdonck.

“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,” van Raemdonck said in a statement. “In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands. I look forward to serving as CEO and continuing to transform the company so that Saks Global continues to play a central role in shaping the future of luxury retail.”

Geoffroy van Raemdonck

Geoffroy van Raemdonck

Katie Jones/WWD

The team that will work under van Raemdonck is starting to crystalize with the appointment of a couple luxury veterans. Darcy Penick has also been named president and chief commercial officer, overseeing stores, marketing, buying, digital, analytics and customer care. Lana Todorovich has been named chief of global brand partnerships. Already on board is Brandy Richardson, the retailer’s chief financial officer, who worked alongside van Raemdonck at Neiman’s.

There’s more than enough work to go around and things need to get rolling quickly, as vendors have not been shipping Saks Global and spring goods are due to hit the sales floor.

The company entered federal bankruptcy court in the southern district of Texas with over 10,000 creditors who now have to go through a judge to try to recoup what they’re owed. The initial court filing placed both the company’s assets and its debts as between $1 billion and $10 billion, but those numbers will be refined. The retailer’s debts include $2.2 billion in bonds the company took on to fund the Neiman’s deal and the additional $600 million in new money that was brought in during a refinancing in August.

The list of unsecured creditors features a who’s who of fashion at the very top, including:

  • Chanel Limited — owed $136 million.
  • Kering — $59.9 million
  • Rosen-X — $41.4 million
  • Capri Holdings — $33.3 million
  • Mayhoola — $33.2 million
  • Compagnie Financière Richemont — $30 million.

The 30th largest unsecured credit, Vince Holding Corp., is owed $9.1 million.

While the highly anticipated bankruptcy filing has come, the ripples from the company’s failure are just starting to spread out.

The Saks + Neiman’s combo was the brainchild of Baker, who spent years using his real estate savvy and creative dealmaking to build a empire that ultimately succumbed to the laws of retail gravity.

That Saks Global was able to actually buy Neiman Marcus — a dream of Baker’s for more than a decade — was something of a marvel since Saks at the time was already not paying its bills, fraying its relation with vendors, who hoped the new debt that came with the transaction would be enough to set the business on its feet.

While bigger brands moved to a concession model at the retailer and retained ownership of their inventory, smaller designers have repeatedly been disappointed by Saks Global.

Marc Metrick, who was CEO of the retailer until just after New Year’s, worked tirelessly to bring the two businesses together — trying to calm vendor nerves, making painful cuts, trimming the staff and setting up a structure without a lead merchant.

The big cracks at Saks Global started to show last February, when Metrick told vendors that the company would start paying its bills on new orders with 90-day terms, instead of a 30-day turnaround, and that past due balances would be paid off in 12 monthly increments starting in July 2025.

“The expectation is that this provides the clarity and certainty you have been seeking,” Metrick wrote at the time. “To that end, we are looking forward to seeing the flow of merchandise return to normal levels so that we can begin to focus on driving our businesses together. In the absence of the normal flow of goods, we anticipate that we will have to make changes to our brand partner matrix.”

Saks Global did cut back on the number of brands it carried — with some walking away from the retailer and vice versa — but the goods never started flowing freely enough to let the retailer boost sales.

The vendors who have been waiting to be paid might well never see much of their money — a devastating result, especially for the smaller designers who have spent more than a year chasing Saks for payment. Secured lenders are first in line in bankruptcies and vendors owed trade payables often find themselves on the losing end. 

Now, the focus shifts to what comes next. Retailers often close stores during bankruptcy as it’s easier to break leases and the rest of the business will have to be reevaluated.

Amazon helped Saks Global buy Neiman’s and powers a Saks shop on its platform. The e-commerce giant has been working to truly break into the luxury market for years and, when it joined in the deal for Neiman’s, was seen as playing a long game to bolster its position and maybe take control of part of the retailer. If so, that game is now coming to an end.

Authentic Brands Group, which has a luxury joint venture with Saks Global, is also said to be keen on parts of the business and could make some kind of a play in bankruptcy court.

The business of Saks Global barrels on into a still uncertain. But the fashion industry — which is exhausted, angry, amazed and, in the case of some brands, close to bankruptcy themselves now — is still trying to understand exactly how the core of the luxury department store world in the U.S. simply unraveled.

Many will look back to the day in 2013, when Baker’s Hudson Bay Co.’s acquired Saks Fifth Avenue.

Even then, Baker made it loud and clear that he was determined to one day buy the Neiman Marcus Group and create a retail empire in the U.S. that would dominate the luxury market.

More guarded was the fact that Saks Fifth Avenue was already faltering, and wouldn’t be viable as a standalone business in the future. Saks could only survive through the consolidations, expense cuts, and greater buying power that a combined Saks-NMG entity could enable. Ultimately, the dire straits at Saks Fifth Avenue, as well as the debt from the acquisition, dragged both businesses down.

Saks Fifth Avenue and Neiman Marcus will at least be pared down, and Bergdorf Goodman could be sold off. A worst-case scenario is that the entire business gets liquidated, which sources suggest could happen due to the complexity of the bankruptcy proceedings and the extended range of bond holders, investors, landlords and vendors all of whom would be battling in court for some recovery.

Aside from its most recent issues — huge debt, deteriorating vendor relations, and the softening luxury sector — Saks has been set back by stronger competition, over expansion, too much management turnover, and strategy reversals since the Nineties.

When Baker arrived on the scene, the retailer was losing ground to competitors, primarily Neiman Marcus, but also to Bloomingdale’s, Nordstrom, and designer brands opening their own stores.

Saks and Neiman’s have been selling many of the same brands but Neiman’s was better at it, particularly with more expensive merchandise. Neiman’s had the edge, with its stronger service, talented team of selling associates with enduring client relationships, and a sharper luxury image consistent from door-to-door with deeper designer presentations.

Saks Fifth Avenue’s store count hasn’t been stable. In the Nineties, it embarked on a path of aggressive expansion opening smaller format “Main Street” and “resort” stores to cover more geography mainly in Florida, California and Texas, and capitalize on specialty stores going out of business.

The strategy didn’t work, and in 2004, Saks decided to close 11 stores — including five Saks Fifth Avenue locations in California. Saks still has several underperforming stores, a situation exacerbated by merchants’ inability to adequately stock locations with enough fresh merchandise due to deteriorating vendor relations.

It’s expected that in the near future more stores will close, possibly in markets where Neiman Marcus also operates. The two luxury retailers each have stores in Chicago, Atlanta, Boston, Las Vegas, and Beverly Hills. Within the last year or so, Saks did close stores in San Francisco, Palm Beach, Fla. In 2019 and 2020, Saks closed its women’s and men’s stores in Brookfield Place in lower Manhattan.

In March 2021, HBC split Saks Fifth Avenue’s website and store fleet into two separate companies, enabling the company to attract a $500 million investment from Insight Partners and accelerate e-commerce growth, and potentially take the online business public. However, after a couple of years, the website and store fleet were back together again.

While turnover in retail is not unusual and can be rapid, Saks has seen more than its fair share of management changes, leading to swings in merchandising and marketing strategies. Jeanne Daniel left Saks in 1998, after just seven months as executive vice president of merchandising. Christina Johnson was CEO from February 2000 to October 2003. Fred Wilson became president and CEO of Saks in January 2004, and left in January 2006. Steve Sadove, however, was CEO from January 2006 to November 2013, bringing some continuity to the business and setting it up for the sale to HBC.

Former Harrod’s chief merchant Marigay McKee became president of Saks in December 2013 but was gone by April 2015. She was replaced by Saks veteran Metrick, who in 2024 became Saks Global CEO. But in October, Metrick’s second-in-command, Emily Essner, president and chief commercial officer of Saks Global for about nine months, left the company, as part of a management shakeup shifting her responsibilities to other executives on the team. Yumi Shin, who had been chief merchandising officer of Bergdorf Goodman, left the store in October and has been recruited by Nordstrom. Shin is being sued by Saks for allegedly violating non-compete restrictions on her contract and sharing proprietary data.

Significantly, Saks Global acquired Neiman’s at a time when business at the two luxury nameplates was being impacted by the slumping luxury sector worldwide. Merging two retailers is always risky, involving resetting the management structure, integrating systems, blending separate corporate cultures – all time-consuming distractions from the day-to-day operations. It can even be fatal when both parties are not performing at their best. The merger of Sears and Kmart in 2005, when the chains were both ailing, eventually led to the liquidation of both.

Saks Global’ strategy for the last year revolved around “resetting” the luxury customer experience by intensifying personalization and bolstering customer service, inventory sharing between Saks and Neiman’s, and having enriched data, deeper customer insights and smoother interactions with consumers, and utilizing AI to a greater degree.

Now, the luxury department store company is going to get another new look — and everyone in fashion will be watching.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Nvidia’s trillion-dollar run puts pressure on the bulls

BEIJING, CHINA – MAY 14: Nvidia CEO Jensen Huang (C) gestures as he prepares to depart following a welcome ceremony at the Great Hall of the People on May 14, 2026 in Beijing, China. President Trump is meeting with President Xi Jinping in Beijing to address the Iran conflict, trade imbalances, and the Taiwan situation

Permutations in Europe: What’s still at stake in final weeks of season?

There’s still plenty to play for across Europe as we head into the final matches of the club season. Here are all the title races, Champions League fights, and relegation battles left to be decided in the top leagues this month. This story will be updated until the end of the campaign. 👉 Jump to:EPL

Brewing a Better Half-Gallon Batch

Today I finally ran an experiment I’ve wanted to try for a long time. If you’re a professional barista—or you run a busy café—this may save you some time. Most coffee shops use 1–1.5 gallon batch brewers (Bunn, Curtis, Fetco, etc.). When I opened Short Sleeves Coffee, I intentionally avoided brewing full 1-gallon batches. I

5 Frozen Breakfasts Chefs Say Keep You Full All Morning

Chef-approved frozen breakfasts with more protein and better ingredients. Eating a healthy breakfast every morning is a great way to start the day, but most people don’t have time to cook. Whether you’re rushing out the door in the morning for work, taking the kids to school or both, there’s usually not much time in

CA scales back plan to ban student use of cell phones

By Carolyn Jones, CalMatters This story was originally published by CalMatters. Sign up for their newsletters. Until last month, California was poised to join nearly a dozen other states that ban cell phones in K-12 schools. But under pressure from school boards and administrators, lawmakers scaled back a bill that would have required such a

BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

London, United Kingdom, May 15, 2026 (GLOBE NEWSWIRE) — BulkQuant has officially launched its AI trading bot platform designed for crypto, forex, and stock market traders seeking a simpler way to automate trading strategies across multiple financial markets. The platform combines AI-powered quantitative analysis, automated trade execution, portfolio monitoring, and adaptive risk management into a

IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

The International Monetary Fund (IMF) has lauded the resilience of Hong Kong’s economy, noting a sustained recovery despite economic activity having yet to return to pre-Covid levels, while warning of downside risks stemming from escalating geopolitical tensions. It also urged Hong Kong to pursue medium-term financial reforms, including the introduction of a goods and services

Smithsonian Presidents Exhibit Reopens With Low-Key Trump Impeachment Mention

For the past year, the Smithsonian Institution has found itself in the awkward position of telling the nation’s story while being supported in part by a government that wants to narrow how that story is told. In December, the White House threatened to revoke funding to the institution if it did not hand over a

Marvel’s Daredevil Follow-up Is Already Dominating on Streaming

A follow-up to Daredevil: Born Again Season 2 on Disney+ has become a massive streaming success within days of its launch. The Punisher: One Last Kill has quickly climbed to the top of multiple charts, beating out other titles on the platform. The MCU television special follows the gun-toting vigilante, who finds himself targeted by

Is Now a Bad Time to Invest?

The market has been on a roll lately, with the S&P 500 (SNPINDEX: ^GSPC) setting new highs throughout May. If you think you missed your opportunity when the market bottomed in late March, don’t fret. The market hitting new all-time highs is not particularly rare and should not change your investment strategy. And if you

6 bids for Hong Kong land sale signal renewed confidence despite market caution

6 bids for Hong Kong land sale signal renewed confidence despite market caution

The Hong Kong government’s first land sale in the current financial year has drawn six bids, according to the Development Bureau, including those from the city’s largest developers, suggesting a more confident outlook for the residential property market. At the close of tender for Tung Chung Town Lot No 54 at Area 106A on Friday

Each Premier League team reranked: Man City rise; Chelsea, Liverpool collapse

Ryan O’Hanlon Close Ryan O’Hanlon ESPN.com writer Ryan O’Hanlon is a staff writer for ESPN.com. He’s also the author of “Net Gains: Inside the Beautiful Game’s Analytics Revolution.”  and  Bill Connelly Close Bill Connelly ESPN Staff Writer Bill Connelly is a writer for ESPN. He covers college football, soccer and tennis. He has been at

Trump departs China after two-day summit

Trump departs China after two-day summit

IE 11 is not supported. For an optimal experience visit our site on another browser. Trump Wraps China Summit With Xi Jinping: What Are the Results? 05:41 Xi gives Trump rare tour of secret garden at heart of Chinese government 01:04 Now Playing Trump departs China after two-day summit 01:01 UP NEXT Special Report: Trump

Carol Chow was facing a bankruptcy petition by five people over unspecified debts at the time of her death. Photo: Dickson Lee

Embattled Hong Kong developer sued for HK$130 million, days after founder’s death

A Hong Kong property developer has been sued for HK$130 million (US$16.6 million) over allegedly breaching guarantor obligations in two bond subscription agreements, becoming the latest lawsuit to implicate the embattled company and following its founder’s sudden death earlier this week. Lofter Group, known for its urban renewal projects across the city’s core districts, and

Trump’s China visit left chip export issue unresolved

This report is from this week’s The Tech Download newsletter. Like what you see? You can subscribe here. One look at the roster of U.S. execs that cozied up to U.S. President Donald Trump on the 20+ hours flight from Alaska to China on Wednesday and you get a sense of the American delegation’s key focus

Why the Cerebras IPO matters for the AI race with China

Why the Cerebras IPO matters for the AI race with China

Cerebras, an AI chipmaker, saw its shares nearly double on Nasdaq, closing up 70% with a $95B market cap. Cerebras’s powerful chips are key in the US-China AI tech race. Chris Buskirk, co-founder and chief investment officer of 1789 Capital, a key Cerebras investor, says the company’s IPO is geopolitically significant. On Thursday, shares of

Fitbit Air vs Whoop Strap Comparison: Price, Features and AI

The Google Fitbit Air is very much the talk of the fitness tracking town right now, not only because it’s the first new Fitbit device that we’ve had in years, but it’s also one of the first big brands to go head-to-head with the established Whoop Strap (if you don’t count the Polar Loop and

0
Would love your thoughts, please comment.x
()
x