"High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday, in one of the largest retail collapses since the pandemic. It comes barely a year after a deal intended to create a luxury powerhouse brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof. The filing cast uncertainty over the future of the iconic U.S. luxury fashion brand, though Saks said early on Wednesday that its stores would remain open for now, after it finalized a $1.75-billion US financing package and appointed a new chief executive."
"Long loved by the rich and famous, Saks never fully recovered from the COVID-19 pandemic, as competition from online outlets rose, and brands started selling more items through their own stores. The company struggled last year to pay vendors, who began withholding inventory. Former Neiman Marcus department store chain CEO Geoffroy van Raemdonck will replace Richard Baker, the architect of the acquisition strategy that saddled Saks Global with debt."
"Saks Global's assets and liabilities are estimated to be in a range of $1 billion to $10 billion, according to documents filed in U.S. Bankruptcy Court in Houston, Texas. The original Saks Fifth Avenue store, known for carrying exclusive brands like Chanel, Cucinelli and Burberry, as well as for its Christmas light shows, was opened by retail pioneer Andrew Saks in 1867."
Saks Global entered bankruptcy protection following heavy debt from a recent acquisition that combined Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus. The company finalized a $1.75 billion financing package and appointed Geoffroy van Raemdonck as CEO, while stores remain open for now. Recovery stalled after the COVID-19 pandemic amid rising online competition and brands selling direct, which led to vendor payment issues and withheld inventory. Assets and liabilities were estimated between $1 billion and $10 billion. The bankruptcy process provides time to negotiate debt restructuring or seek a buyer; failure could force store closures.
Read at www.cbc.ca
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