Saks Global bankruptcy proceedings began late Tuesday as the luxury retailer filed for Chapter 11 protection, while simultaneously announcing it had secured approximately $1.75 billion in new financing. The package includes $1.5 billion from an ad hoc group of senior secured bondholders and about $240 million in additional liquidity from asset-based lenders, giving the company short-term runway as it restructures.
Alongside the filing, Saks Global confirmed that executive chairman and CEO Richard Baker has stepped down. He is being replaced by Geoffroy van Raemdonck, the former head of Neiman Marcus Group, which Saks Global acquired in 2024 as part of a high-profile luxury consolidation effort.
Backed by key financial stakeholders, Saks Global initiated voluntary Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. Despite the restructuring, the company said all stores and e-commerce operations will continue uninterrupted across its Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow brands.
According to Reuters, the $2.7 billion acquisition of Neiman Marcus left the company heavily leveraged just as global luxury demand began to cool. Industry observers argue the merger struggled to adapt to shifting consumer expectations. “In a market where luxury brands are moving direct-to-consumer and shoppers expect personalization and speed, that merger was always going to fail,” said Brittain Ladd, a strategy and supply-chain consultant at Chang Robotics.
Van Raemdonck is now reshaping Saks Global’s leadership structure as part of the turnaround. Darcy Penick has been appointed president and chief commercial officer, overseeing stores, marketing, buying, digital operations, analytics and customer care. Lana Todorovich has been named chief of global brand partnerships, signaling a renewed focus on brand relationships and revenue diversification.
“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 addressing employees and stakeholders.
As part of the restructuring, the ad hoc bondholder group has committed $1 billion in debtor-in-possession financing, pending court approval. An additional $500 million will be made available once Saks Global exits bankruptcy, which the company expects to complete later this year.
