US luxury retail group Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for bankruptcy. The company, which has been struggling with a substantial debt load, initiated bankruptcy proceedings in the US Bankruptcy Court for the Southern District of Texas.
Saks Global has appointed former Neiman Marcus Group head Geoffroy van Raemdonck as its new CEO, replacing Richard Baker. The company is evaluating its operational footprint to invest in areas with the greatest long-term potential. Van Raemdonck stated that this is a defining moment for Saks Global, presenting an opportunity to strengthen the foundation of the business and position it for the future.
The retailer has secured a $1.75 billion financing commitment, which will enable its stores to remain open for now. The financing package is expected to position the company for a strong and stable future while continuing to provide customers with luxury shopping experiences. According to court documents, Saks Global estimates its assets and liabilities to be between $1 billion and $10 billion.
The company’s financial struggles began after defaulting on a $100 million interest payment related to its $2.7 billion acquisition of Neiman Marcus in 2024. Despite this, Saks Global has pledged to honor all customer programs, make payments to vendors, and continue employee payroll and benefits.
The bankruptcy filing is a significant development in the luxury retail industry, highlighting the challenges faced by high-end retailers in a rapidly changing market. Saks Global’s decision to restructure its operations and secure new financing is aimed at ensuring the long-term viability of its iconic brands. As the company navigates the bankruptcy process, it remains committed to providing exceptional customer experiences and maintaining its position as a leading luxury retailer. With its new leadership and financing in place, Saks Global is poised to emerge from this challenging period with a stronger foundation for future growth.
