The Tamesis
After months of speculation, Saks Global, owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, has filed for bankruptcy.
The company confirmed it had filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code and had secured financing commitments of approximately $1.75 billion. Ostensibly, this would give the company time to reorganize and reorganize its business and debt.
Additionally, Saks Global announced the appointment of Geoffroy van Raemdonck as Chief Executive Officer, effective immediately. Richard Baker resigned as executive chairman and CEO of Saks Global on January 13.
“This is a defining moment for Saks Global and the road ahead provides a meaningful opportunity to strengthen the fundamentals of our business and position ourselves for the future,” said van Raemdonck. “Working closely with these newly appointed leaders and colleagues across the organization, we will guide this process together and remain focused on serving our clients and luxury brands.”
The document’s release follows a tumultuous month that made headlines almost daily. In December, Hilldun Corporation suspended approval of Saks shipments because the retailer missed two weeks of payments. At the time, CEO Gary Wassner told fashion business He hopes to resume payments by the end of the year. As of January 6, he had still not done so.
On January 2, Sacks announced that Marc Metrick, who had worked at the company for 30 years, would resign as CEO and be replaced by then-executive chairman Richard Baker. On January 11, reports surfaced that Baker would also be exiting the company. On January 13, media reported that former Neiman Marcus CEO Geoffroy van Raemdonck, who led the retailer through its Chapter 11 bankruptcy process before it was acquired by Saks, had been appointed to the role.
Saks also secured a $1.75 billion debt-to-hold financing package to keep the business operating during the restructuring. The investment group, led by Pentwater Capital Management of Naples, Fla., and Bracebridge Capital of Boston will inject $1 billion in cash immediately. The $250 million is expected to come from asset-backed lenders led by Bank of America.
The news is a blow to independent and emerging brands, for many of which Saks Global’s retailers account for a large portion of the business (some say 50% or more). Experts say that while the financing package will reportedly allow Saks to pay its suppliers, smaller brands will likely be the last to receive payments — if they get paid at all.
“Geoffroy has a proven track record of driving transformative growth for Neiman Marcus Group and other brands, building trusted relationships within these organizations and across the industry. His leadership will help drive the company’s focus on stability and long-term value creation,” said Saks Global board member Paul Aronzon. “We also want to thank Richard for being a visionary leader during his tenure at Saks Global. We appreciate his contributions and wish him continued success in the future.”
More information on this topic:
Saks global CEO Marc Metrick resigns
What will happen to Saks Global in 2026?
What’s next for Saks Global?
