Saks Global has officially filed for Chapter 11 bankruptcy, marking a major shake-up in the luxury retail industry. After years of financial struggles and mounting debt, the company seeks to restructure under new leadership and secure its future in the competitive luxury market.
New Leadership Takes the Helm
As part of the restructuring process, Saks Global has appointed Geoffroy van Raemdonck as its new CEO. Van Raemdonck, who previously led Neiman Marcus Group when Saks Global acquired it, will oversee the court-supervised process. He takes over from Richard Baker, who recently stepped down from his role as executive chairman and CEO.
"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", van Raemdonck said in a statement. "In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands. I look forward to serving as CEO and continuing to transform the company so that Saks Global continues to play a central role in shaping the future of luxury retail."
Van Raemdonck will be supported by a new executive team, including Darcy Penick as president and chief commercial officer, and Lana Todorovich as chief of global brand partnerships. Brandy Richardson, chief financial officer of Saks Global, will also continue in her role.
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Financial Struggles and Vendor Woes
Saks Global’s bankruptcy filing was made in the Southern District of Texas and reveals staggering financial challenges. The company’s assets and liabilities are estimated to be between $1 billion and $10 billion. Included in this are debts of $2.2 billion from the Neiman Marcus acquisition and $600 million raised during a refinancing effort.
In an effort to stay operational during the bankruptcy process, Saks Global secured $1.75 billion in financing from its bondholders. However, the company’s relationships with vendors have been severely strained, with many awaiting overdue payments. Among the notable unsecured creditors are Chanel Ltd., owed $136 million; Kering, owed $59.9 million; and Capri Holdings, owed $33.3 million. Smaller designers, who have struggled to collect payments, may face further financial difficulties as a result.
Spring merchandise, which is critical to Saks Global’s success, has yet to reach store shelves due to the disrupted flow of goods. Vendors have been hesitant to ship products, citing payment delays and uncertainty regarding future transactions.
The Road to Bankruptcy
The challenges facing Saks Global have been building over the years. The company’s acquisition of Neiman Marcus in a $2.7 billion deal, while ambitious, added substantial debt to an already precarious financial situation. Securing the deal was seen as a bold move by Baker, whose vision of consolidating the luxury department store market was ultimately undermined by insufficient resources and declining vendor confidence.
Earlier signs of trouble emerged when the company extended payment terms on new orders from 30 days to 90 days and announced a plan to pay past-due balances in monthly installments starting in July 2025. These changes failed to restore normal operations, and sales continued to falter, forcing the company to reduce its brand offerings.
Future Uncertainties
As it moves through bankruptcy proceedings, Saks Global faces an uncertain future. The company may be forced to close underperforming stores or sell off key assets, including Bergdorf Goodman. The potential for liquidation remains on the table due to the complexity of the bankruptcy and the wide array of stakeholders involved, including bondholders, landlords, and vendors.
Amazon, which partnered with Saks Global on the Neiman Marcus acquisition and powers a Saks shop on its platform, has long sought a foothold in the luxury retail space. The e-commerce giant’s role in the company’s future remains unclear. Additionally, Authentic Brands Group, which has a luxury joint venture with Saks Global, could potentially make a bid for parts of the business during the restructuring process.
For now, the once-prominent luxury retailer must focus on stabilizing operations and rebuilding trust with vendors and customers as it seeks to emerge from bankruptcy.
A Troubled History
Saks Global’s struggles reflect broader challenges in the luxury retail sector, including stiff competition, management turnover, and shifts in consumer behavior. Neiman Marcus, once seen as the stronger brand, has historically outperformed Saks stores with superior service, deeper designer offerings, and a consistent luxury image.
Moreover, Saks Global’s expansion efforts in the 1990s and early 2000s backfired, leading to store closures in key markets. Recent years have also seen further downsizing, including closures in San Francisco, Palm Beach, and Manhattan’s Brookfield Place.
Despite efforts to modernize its operations, including a 2021 split of its e-commerce and physical store businesses, Saks Global has struggled to maintain its footing. The company’s reliance on personalization, AI, and inventory sharing between Saks and Neiman Marcus fell short of reversing its fortunes.
Now, the industry watches closely as Saks Global navigates its restructuring. Whether the retailer can reinvent itself and regain its position as a leader in luxury retail remains to be seen.