Quick Read
- Saks Global filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
- The company secured $1.75 billion in financing, comprising $1.5 billion from senior secured bondholders and $240 million from asset-based lenders.
- Geoffroy van Raemdonck, former Neiman Marcus Group CEO, has been appointed as the new CEO of Saks Global, replacing Richard Baker.
- All Saks Global stores and e-commerce platforms, including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, remain open and operational.
- The restructuring aims to address debt from the 2024 Neiman Marcus acquisition and reposition the company in a challenging luxury market.
In a bold strategic maneuver aimed at navigating the evolving landscape of high-end commerce, Saks Global, the powerhouse behind iconic luxury brands like Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, announced its filing for Chapter 11 bankruptcy protection. This decisive step, initiated in the U.S. Bankruptcy Court for the Southern District of Texas, is not a sign of impending closure but rather a carefully orchestrated plan for comprehensive restructuring, backed by a robust $1.75 billion financing package.
The move comes as the global luxury market faces significant headwinds, with consumers exhibiting caution amid economic anxieties. A study by Bain & Co. in November 2025 projected a second consecutive year of contraction in global luxury goods sales for 2026, underscoring the challenging environment for retailers. Saks Global’s decision to seek bankruptcy protection is largely driven by the substantial debt accrued from its $2.65 billion acquisition of Neiman Marcus in 2024, a burden that has become increasingly difficult to manage in a competitive and tightening market, as reported by ABC News.
A Financial Lifeline for Transformation
Central to Saks Global’s restructuring strategy is the impressive $1.75 billion financing commitment. This capital infusion is designed to provide ample liquidity for the company’s ongoing operations and its ambitious turnaround initiatives. The bulk of this financing, $1.5 billion, comes from an ad hoc group of the company’s senior secured bondholders, demonstrating a significant vote of confidence from key financial stakeholders. An additional $240 million in incremental liquidity has been secured from Saks Global’s asset-based lenders, further solidifying its financial position during this transition.
Importantly, a portion of this financing, specifically $1 billion in debtor-in-possession (DIP) financing from the Ad Hoc Group, will be immediately available upon court approval to fund operations throughout the Chapter 11 process. Beyond this, the Ad Hoc Group has committed an additional $500 million of financing, which will become accessible to the company upon its expected emergence from bankruptcy later this year. This multi-layered financial support is critical, ensuring Saks Global can continue to operate smoothly, honor its customer programs, and meet its obligations to suppliers and employees without disruption, according to a press release from PRNewswire.
New Leadership to Steer the Course
Accompanying the financial restructuring is a significant overhaul of Saks Global’s leadership. Geoffroy van Raemdonck, a seasoned veteran of the luxury retail sector, has been appointed as the new Chief Executive Officer, effective immediately. Van Raemdonck is no stranger to the company’s portfolio, having previously served as CEO of Neiman Marcus Group before its acquisition by Saks Global. His return is highly anticipated, bringing with him a proven track record of driving transformative growth and building trusted relationships across the industry, including key roles at iconic brands like Louis Vuitton and Ralph Lauren.
Van Raemdonck succeeds Richard Baker, who stepped down from his roles as Executive Chairman and CEO on January 13, 2026. This change follows an earlier leadership transition where Marc Metrick, the previous top executive, also stepped down. Joining Van Raemdonck on the leadership team is Chief Financial Officer Brandy Richardson, who worked alongside him at Neiman Marcus Group. Furthermore, Van Raemdonck is expanding the senior leadership team by bringing back other industry veterans: Darcy Penick has been named President, Chief Commercial Officer, overseeing Stores, Marketing, Buying, Digital, Analytics, and Customer Care, while Lana Todorovich takes on the role of Chief of Global Brand Partnerships, leading efforts with brand partners at an enterprise level. Paul Aronzon, a member of Saks Global’s Board of Directors, emphasized Van Raemdonck’s ability to drive ‘transformative growth’ and ‘advance the Company’s focus on stability and long-term value creation.’
Business as Usual for Customers and Brands
Despite the bankruptcy filing, Saks Global has been quick to reassure its customers and partners that operations will continue unimpeded. Stores and e-commerce experiences across its extensive portfolio – including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow – remain open and fully operational. The company has explicitly stated that it does not anticipate any disruption to its services, emphasizing its commitment to providing exceptional products, elevated luxury experiences, and highly personalized service. Customer programs will be honored, and relationships with suppliers and employees will be maintained in the ordinary course of business.
The Chapter 11 process, often misunderstood as a liquidation, is a legal framework designed for reorganization, allowing companies to restructure their debts and operations while continuing to do business. For Saks Global, this means an opportunity to streamline its business, address its debt load, and focus on areas where its luxury retail brands are best positioned for sustainable growth. The company’s strategic vision, ‘The Art of You,’ which aims to redefine luxury shopping by offering personalized experiences, remains at the core of its efforts, now bolstered by a clearer path to financial stability.
The Road Ahead for Luxury Retail
The restructuring of Saks Global unfolds against a backdrop of significant shifts in consumer behavior and economic realities. The company’s origins trace back to Hudson’s Bay Co., which split off Saks.com in 2021 before Saks Fifth Avenue transformed into Saks Global after the Neiman Marcus acquisition in 2024. This history highlights a continuous effort to adapt to market demands and consolidate strength in the luxury sector. The challenges faced by Saks Global reflect broader trends impacting traditional department stores and the luxury segment, which must increasingly innovate to attract and retain discerning customers.
The company’s advisors, including legal counsel Willkie Farr & Gallagher LLP and Haynes and Boone, LLP, and investment banker PJT Partners LP, are working closely with Saks Global to navigate the complexities of the Chapter 11 process. Similarly, the Ad Hoc Group has its own team of advisors, including Paul, Weiss, Rifkind, Wharton & Garrison LLP and Lazard Frères & Co, LLC. This comprehensive advisory structure underscores the intricate nature of the restructuring, aiming for a swift and effective resolution that sets Saks Global on a path toward renewed strength and profitability.
Saks Global’s Chapter 11 filing, while a stark headline, should be viewed less as a failure and more as a calculated recalibration. By strategically leveraging bankruptcy protection and securing substantial financing, the company is not merely surviving but actively attempting to redefine its future in a volatile luxury market. The infusion of fresh leadership and capital provides a critical opportunity to shed legacy debt and focus on innovation, potentially setting a precedent for how established luxury retailers can adapt and thrive in an increasingly competitive and economically uncertain world.