Saks Global, the parent company of luxury retail brands Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for bankruptcy. The company, which operates approximately 70 stores, cited a substantial debt load as a primary factor in its decision to initiate bankruptcy proceedings in the US Bankruptcy Court for the Southern District of Texas.
The group has struggled to navigate a challenging economic climate, with American consumers remaining price-conscious and hesitant to spend at its flagship Saks Fifth Avenue store. Despite this, Saks Global has secured $1.75 billion in financing, which will enable the company to continue operating its stores, including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow.
As part of its restructuring efforts, Saks Global has appointed former Neiman Marcus Group head Geoffroy van Raemdonck as its new CEO, effective immediately. Van Raemdonck replaces Richard Baker, and his appointment is seen as a key step in the company’s efforts to strengthen its foundation and position itself for long-term success. According to 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.”
The company has estimated its assets and liabilities to be between $1 billion and $10 billion, according to court documents. Saks Global had previously defaulted on a $100 million interest payment related to its nearly $2.7 billion acquisition of Neiman Marcus in 2024. The new financing package is expected to provide liquidity to fund the company’s operations and turnaround initiatives.
Saks Global has assured customers that it will honor all customer programs, make payments to vendors, and continue employee payroll and benefits throughout the bankruptcy process. The company remains committed to its loyal customers and plans to invest in areas with the greatest long-term potential. With its new leadership and financing in place, Saks Global is poised to navigate the challenges ahead and emerge as a stronger, more stable company. The bankruptcy filing marks a significant step in the company’s efforts to restructure and position itself for success in the competitive luxury retail market.
