**Saks Global Files for Chapter 11; CEO Richard Baker Steps Down**
Saks Global Holdings LLC filed for Chapter 11 bankruptcy late Tuesday and announced on Wednesday that it has secured approximately $1.75 billion in financing to support its ongoing operations. The financing includes $1.5 billion from an ad hoc group of the company’s senior secured bondholders and an additional $240 million in liquidity from its asset-based lenders.
As part of the restructuring effort, Executive Chairman and CEO Richard Baker has stepped down. Geoffroy van Raemdonck, former CEO of Neiman Marcus Group, has been appointed as the new CEO. Saks Global had acquired Neiman Marcus earlier in 2024.
The company filed voluntary Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. Despite the filing, operations continue across all of Saks Global’s retail and e-commerce brands, including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow.
The $2.7 billion acquisition of Neiman Marcus added significant debt to Saks Global at a time when the global luxury market was slowing. According to Brittain Ladd, a strategy and supply-chain consultant at Chang Robotics, the merger was likely to face challenges. “In a market where luxury brands are moving direct-to-consumer and shoppers expect personalization and speed, that merger was always going to fail,” Ladd told Reuters.
Looking ahead, Van Raemdonck is enhancing the company’s executive leadership team. Darcy Penick has been appointed president and chief commercial officer, and will oversee stores, marketing, buying, digital, analytics, and customer care. Lana Todorovich has been named 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.
The ad hoc bondholder group has committed $1 billion in debtor-in-possession financing, subject to court approval, and is expected to provide an additional $500 million once the company emerges from bankruptcy, anticipated later this year.
