"The owner of Saks Fifth Avenue is seeking bankruptcy protection, buffeted by rising competition and the massive debt it took on to buy its rival in the luxury sector, Neiman Marcus, just over a year ago. Saks Global has secured roughly $1.75 billion in financing, the New York company said as filed for Chapter 11 bankruptcy Wednesday in the Southern District of Texas."
""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 Geoffroy van Raemdonck, who took over for CEO and Executive Chairman Richard Baker this week. Baker had assumed control after the company's CEO Marc Metrick, stepped down earlier this month. When Saks said that it would buy Neiman Marcus for $2.65 billion in the summer of 2024, the goal was to create a powerhouse in a luxury sector that had grown more fragmented. Online sellers were siphoning customers and big name brands had begun to sell goods from their own stores."
Saks Global filed for Chapter 11 bankruptcy in the Southern District of Texas and secured roughly $1.75 billion in financing to support a restructuring. Stores will remain open and the company said it will honor customer programs while paying suppliers and employees. Geoffroy van Raemdonck replaced Richard Baker following CEO Marc Metrick’s recent departure. The $2.65 billion acquisition of Neiman Marcus increased the company’s debt burden as luxury sales weakened. Global luxury goods are projected to contract again in 2026, and the upscale department store landscape has been volatile with prior bankruptcies and liquidations among peers.
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