Debt-riddled retail giant Saks Global filed for bankruptcy protection on Tuesday, a month after missing a $100m interest payment, in one of the largest retail collapses since the pandemic. The company, which owns Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus, said it had filed for Chapter 11 bankruptcy to facilitate its ongoing transformation.
Saks Global said its stores would remain open after finalising a $1.75bn financing package and appointing a new CEO. Geoffroy van Raemdonck, former Neiman Marcus CEO, will replace Richard Baker, who orchestrated the acquisition strategy that left the company saddled with debt.
The company has struggled since the merger of Saks and Neiman Marcus a year ago, with overdue payments to vendors and a 13% drop in revenue in the second quarter of last year. In late December, it sold its Neiman Marcus Beverly Hills flagship, and 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. Luxury brands including Chanel and Gucci owner Kering are among the unsecured creditors, with claims of $136m and $60m respectively.
