Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, is seeking a financial lifeline. The company filed for Chapter 11 bankruptcy protection late Tuesday, citing cash shortfalls and missed key payments.
Saks, which had been trying to secure $1 billion in financing to keep its stores open, recently missed interest payments to bondholders. As cash tightened, Saks stopped paying some suppliers, pushing the company closer to the brink.
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The bankruptcy filing gives the company an opportunity to restructure, and it brought back Geoffroy van Raemdonck, the former chief executive of Neiman Marcus, to serve as Saks Global’s CEO. He replaces Richard Baker, who in 2024 oversaw Saks’ $2.65 billion acquisition of Neiman Marcus and Bergdorf in an attempt to create a luxury powerhouse that would lure customers back to the stores. However, that never materialized, and Saks was then marred by a heavy debt load.
Bankruptcy buys time for Saks Global
For now, the bankruptcy filing gives Saks time, with the company announcing Wednesday what it called a transformative financial transaction — $1.75 billion in new capital, most from existing bondholders and the rest from other lenders.
“This is a defining moment for Saks Global,” van Raemdonck said in a statement, “and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.”
He also vowed that Saks would continue to play a major role in luxury retail in the future.
The company said as part of its bankruptcy filing it would seek to honor all customer programs, make payments to vendors and continue to pay its employees.
What’s unclear is what this means for the more than 200 upscale stores — and for the future of the iconic brands as Saks searches for new investors.
The Saks Global financial difficulties are hardly unique, as customers continue to move away from big department stores. Macy’s closed hundreds of stores in 2024, and Lord & Taylor closed in 2020. However, the retailer plans to relaunch as an e-commerce business. Luxury shoppers are more often relying on direct-to-consumer sales and forgoing department stores.
