Debt-riddled luxury department store conglomerate Saks Global filed for Chapter 11 bankruptcy protection on Tuesday, one month after missing a $100m interest payment. The filing marks one of the largest retail collapses since the pandemic, casting uncertainty over the future of US luxury fashion.
Barely a year after a deal brought together Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus, Saks Global said it had filed for bankruptcy to facilitate its ongoing transformation. The company said its stores would remain open after finalising a $1.75bn financing package and appointing a new CEO, Geoffroy van Raemdonck, formerly of Neiman Marcus.
The company has struggled since the merger, with overdue payments to vendors leading them to withhold inventory. Revenue fell 13% in the second quarter of last year. In late December, Saks Global sold the Neiman Marcus Beverly Hills flagship property, and longtime CEO Marc Metrick resigned shortly after.
The new financing includes a $1bn debtor-in-possession loan from an investor group, $240m in asset-backed loans, and $500m available upon exiting bankruptcy. Unsecured creditors include Chanel ($136m), Kering ($60m) and LVMH ($26m), with total creditors estimated between 10,001 and 25,000.
Former CEO Richard Baker masterminded the $2.7bn takeover of Neiman Marcus by Hudson's Bay Co in 2024, later spinning off US luxury assets to create Saks Global. The deal was built on $2bn in debt financing and equity from investors including Amazon and Salesforce.
