Saks Global, the company that owns luxury department store chain Saks Fifth Avenue and its Midtown flagship, officially filed for bankruptcy on Wednesday, according to multiple reports.
The Chapter 11 proceedings followed at least a year of financial struggles, marked by poor sales and billions in debt after a $2.7 billion deal to merge Saks Fifth Avenue and the Neiman Marcus Group in 2024. Stores and e-commerce sites across Saks Fifth Avenue and affiliated retailers remain open and available for customers to use.
Saks Global filed the claim in the U.S. Bankruptcy Court for the Southern District of Texas on Jan. 14.
According to the news outlet Retail Dive, Saks Global entered bankruptcy court with a $1.75 billion financing package, comprising $1.5 billion from an ad hoc group of its senior secured bondholders and approximately $240 million in incremental liquidity from its asset-based lenders.
Meanwhile, Saks Global announced Geoffroy van Raemdonck as its new CEO on Wednesday, effective immediately. Van Raemdonck, the former CEO of the Neiman Marcus Group, replaced Richard Baker, who resigned just a day ago on Jan. 13.
What is the future of Saks Global?
Saks’ bankruptcy filing is a significant moment in the ongoing retail financial crisis, according to the new CEO.
“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,” said van Raemdonck.
With van Raemdonck’s at the helm, Saks Global has undergone additional leadership restructuring. The retailer brought in a slate of industry leaders and Neiman Marcus Group executives to help run the company.
Per a Saks Global press release, Darcy Penick has been named president, chief commercial officer, overseeing stores, marketing, buying, digital, analytics and customer care. Lana Todorovich is now chief of global brand partnerships, leading the luxury retailer’s efforts with brand partners.
“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,” van Raemdonck said. “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.”
Brandy Richardson, CFO, is also at the company and worked alongside van Raemdonck at the Neiman Marcus Group.
As for Saks Global’s path forward, the company said it is “evaluating its operational footprint to invest resources where it has the greatest long-term potential.”
It is also seeking relief in court to honor all customer programs, make go-forward payments to vendors, and continue employee payroll and benefits.
Saks Fifth Avenue’s flagship store in Midtown was a strong contender in the bidding for a coveted New York casino license since 2023, until community opposition forced it to pull out of the race in April.
