Luxury retail conglomerate Saks Global files for bankruptcy protection
Jan. 14 (UPI) — Saks Global, the luxury retail parent company of Neiman Marcus, Bergdorf Goodman and Saks Fifth Avenue, announced late Tuesday that it has filed for bankruptcy.
The high-end retail conglomerate announced its Chapter 11 bankruptcy protection filing in the Southern District of Texas in a statement.
The announcement comes 17 months after Saks Global was created with HBC, Saks Fifth Avenue’s parent company, acquiring the Neiman Marcus Group for $2.65 billion.
In late March, Neiman Marcus’ flagship store in downtown Dallas, which first opened in 1907, closed.
Saks Global said its bankruptcy filing comes with the support of “key financial stakeholders” and is part of plans “to facilitate its ongoing transformation.”
Coinciding with its bankruptcy, Saks Global announced what it called “a transformative financial transaction” of a $1.75 billion financing commitment to “strengthen the company’s balance sheet and position it for a strong and stable future while it continues to provide customers with unparalleled multi-brand luxury shopping experiences.”
Of the secured funds, $1.5 billion was from an ad hoc group of Saks Global’s senior secured bondholders and $240 million in incremental liquidity from its asset-based lenders.
Though dependent on the court’s approval, the $1 billion of debtor-in-possession financing from the ad hoc group “will provide ample liquidity to fund Saks Global’s operations and turnaround initiatives,” the conglomerate said.
With the announcement, Richard Baker, executive chairman and CEO of Saks Global, was stepping down, effective Tuesday, and was to be replaced by Geoffroy van Raemdonck, who served as CEO of Neiman Marcus Group before it was acquired in the 2024 deal.
“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 a statement.
“I look forward to serving as CEO and continuing to transform the company so that Saks Global continues to play a central role in shaping the future of luxury retail.”