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Saks Global Files for Chapter 11; CEO Baker Out
Following its bankruptcy filing late Tuesday, Saks Global Holdings LLC announced Wednesday it has secured a financing commitment of approximately $1.75 billion, comprising $1.5 billion from an ad hoc group of the company’s senior secured bondholders and approximately $240 million of incremental liquidity from its asset-based lenders.
The company also announced that executive chairman and CEO Richard Baker has stepped down. He has been succeeded as CEO by Geoffroy van Raemdonck, formerly head of Neiman Marcus Group before Saks Global acquired it in 2024.
With support from key financial stakeholders, Saks Global commenced voluntary chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. Stores and e-commerce across its Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow brands remain open.
Reuters reported that the $2.7-billion Neiman Marcus acquisition saddled the company with debt at a time when global luxury sales were slowing. “In a market where luxury brands are moving direct-to-consumer and shoppers expect personalization and speed, that [merger] was always going to fail,” Brittain Ladd, a strategy and supply-chain consultant at Chang Robotics, told Reuters.
Van Raemdonck is expanding Saks Global’s senior leadership team. Darcy Penick has been named president, chief commercial officer, overseeing 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 group is providing $1 billion of debtor-in-possession financing, subject to court approval. It will provide another $500 million upon the company’s emergence from bankruptcy, which is expected later this year.
