**Saks Global Files for Chapter 11; CEO Richard Baker Steps Down**
Saks Global Holdings LLC has filed for Chapter 11 bankruptcy, the company announced on Wednesday. This move comes after a significant debt burden, partially stemming from its $2.7 billion acquisition of Neiman Marcus in 2024, which occurred amid a slowdown in global luxury sales.
As part of its restructuring, the company has secured approximately $1.75 billion in financing, including $1.5 billion from an ad hoc group of senior secured bondholders and an additional $240 million in liquidity from its asset-based lenders. This will allow the company to maintain operations while undergoing bankruptcy proceedings.
In a leadership shakeup, Richard Baker has stepped down as executive chairman and CEO. He is being succeeded by Geoffroy van Raemdonck, the former head of Neiman Marcus Group. Van Raemdonck, who stepped into the CEO role as part of Saks Global’s post-acquisition strategy, is now leading the company through its reorganization.
Saks Global has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, with the support of key financial stakeholders. Despite the filing, all retail stores and e-commerce operations under the Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow brands remain open and operational.
Industry analysts have expressed concern over the sustainability of the Neiman Marcus acquisition, especially in a market where luxury retailers are increasingly shifting to direct-to-consumer models and customers demand personalization and speed. Brittain Ladd, a strategy and supply-chain consultant at Chang Robotics, told Reuters, “In a market where luxury brands are moving direct-to-consumer and shoppers expect personalization and speed, that [merger] was always going to fail.”
As part of the restructuring, van Raemdonck is expanding the senior leadership team. Darcy Penick has been appointed President and Chief Commercial Officer, overseeing stores, marketing, digital operations, analytics, and customer care. Additionally, Lana Todorovich will serve as Chief of Global Brand Partnerships.
“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,” said van Raemdonck in a statement.
The ad hoc lender group is providing $1 billion in debtor-in-possession financing, subject to court approval, with an additional $500 million set to be made available upon the company’s emergence from bankruptcy, which is expected later this year.
