In a seismic shift for the high-end retail sector, Saks Global—the powerhouse parent company of iconic department stores Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—has formally commenced Chapter 11 bankruptcy proceedings. The filing was submitted to the U.S. Bankruptcy Court for the Southern District of Texas on Wednesday, marking a critical juncture for the struggling luxury conglomerate.
The company cited an unsustainable debt burden as the primary catalyst for this decision, specifically pointing to a recent default on a $100 million interest payment connected to its monumental $2.7 billion acquisition of Neiman Marcus earlier this year. Court filings reveal the company estimates its assets and liabilities each fall within the staggering range of $1 billion to $10 billion.
In a strategic move to navigate its restructuring, Saks Global has secured a substantial $1.75 billion debtor-in-possession (DIP) financing package. This capital infusion is designed to ensure operational continuity throughout the bankruptcy process. The company has explicitly assured that all its retail locations will remain open, customer programs and gift cards will be honored, vendor payments will proceed, and employee payroll and benefits will continue uninterrupted.
Concurrent with the filing, a significant leadership overhaul was announced. Geoffroy van Raemdonck, the former head of Neiman Marcus Group, has been appointed Chief Executive Officer with immediate effect, succeeding Richard Baker. In an official statement, van Raemdonck framed the bankruptcy as a ‘defining moment’ for the company, stating it presents a ‘meaningful opportunity to strengthen the foundation of our business and position it for the future.’ He further indicated that the group will be conducting a thorough evaluation of its ‘operational footprint’ to strategically invest in areas with the ‘greatest long-term potential,’ signaling potential store optimizations or closures ahead.