The luxury retailer said stores will remain open as it seeks to restructure debt and reset leadership.
High-end department store operator Saks Global filed for Chapter 11 bankruptcy protection on Jan. 13, just over a year after completing a $2.7 billion deal that brought Neiman Marcus Group under the same corporate umbrella.
The Chapter 11 process, following the filing in the U.S. Bankruptcy Court for the Southern District of Texas, is intended to give Saks Global time to negotiate a restructuring of its debt and focus the business in areas where its luxury retail brands are “best positioned for sustainable growth,” the company said in a Jan. 14 statement.
The acquisition of the Neiman Marcus Group, finalized in December 2024, brought some of the most recognizable names in luxury retail, including Saks Fifth Avenue, Bergdorf Goodman, Neiman Marcus, and Saks OFF 5TH, under the same roof.
Saks Global said its stores and digital platforms would remain open and operating as usual while the court-supervised process unfolds.
Approval of First-Day Motions
As part of the Chapter 11 proceedings, Saks Global said it is seeking approval of some customary first-day motions designed to allow the business to continue operating without disruption.
“These motions, which Saks Global expects to be approved in short order, include requests to honor all customer programs, make go-forward payments to vendors, and continue employee payroll and benefits,” Saks Global said.
The company also said it is reviewing its store footprint as part of the restructuring.
“As part of the chapter 11 process, the Company is evaluating its operational footprint to invest resources where it has the greatest long-term potential,” Saks Global said. “This approach reflects an effort to focus the business in areas where the Company’s luxury retail brands are best positioned for sustainable growth.”
Financing Package
Saks Global said it has secured a financing commitment totaling about $1.75 billion to support operations during the restructuring.
The package includes $1.5 billion from an ad hoc group of senior secured bondholders and about $240 million in incremental liquidity from asset-based lenders, the company said.
Upon court approval, $1 billion of debtor-in-possession financing from the bondholder group will be immediately available to fund operations and turnaround initiatives.
An additional $500 million has been committed to support the company once it emerges from bankruptcy, which Saks Global said it expects to do later this year.
“This financing package will strengthen the Company’s balance sheet and position it for a strong and stable future,” Saks Global said, adding that it would allow the retailer to continue serving customers during the restructuring.
Leadership Overhaul
As well as announcing the bankruptcy filing, Saks Global reported a change at the top of the company. Saks Global said Geoffroy van Raemdonck was appointed chief executive officer, effective immediately.
Van Raemdonck, who previously served as CEO of Neiman Marcus Group before its acquisition by Saks Global in 2024, succeeds Richard Baker, who stepped down as executive chairman and CEO effective Jan. 13.
“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 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 will work alongside Chief Financial Officer Brandy Richardson, who also served as CFO during his tenure at Neiman Marcus Group. Van Raemdonck is expanding the senior leadership team with several appointments drawn from the luxury retail sector.
Saks Global said Darcy Penick was named president and chief commercial officer. Penick will oversee stores, marketing, buying, digital operations, analytics, and customer care. Lana Todorovich was appointed chief of global brand partnerships, leading relationships with luxury suppliers.
Board member Paul Aronzon said the leadership transition would help stabilize the company.
“Geoffroy has a proven track record driving transformative growth at Neiman Marcus Group and other brands,” Aronzon said. “His leadership will help advance the Company’s focus on stability and long-term value creation.”
