Just over a year after completing an acquisition of Neiman Marcus, Saks Global has filed for Chapter 11 bankruptcy protection. In a decision dated Jan. 15, a judge overseeing the case in the Southern District of Texas approved the company’s financing plans so that it could proceed.

That approval came despite an objection filed by Amazon.

Saks Global has taken measures in an attempt to emerge from bankruptcy. In addition to what it has called “a transformative financial transaction,” it has announced a leadership transition as part of its recovery process.

The 2024 deal brought together Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman under the then-newly formed Saks Global. Each retailer continued to operate independently under its existing brand name.

Now, the company “is evaluating its operational footprint to invest resources where it has the greatest long-term potential,” it said in a Jan. 14 statement about securing capital.

Prior to the deal that created Saks Global, Saks fell under Hudson’s Bay Company, which ranks No. 26 in the Top 2000 Database. The database ranks North America’s largest ecommerce retailers by their annual ecommerce sales and more.

Saks Global was formed as a distinct entity through the deal to acquire Neiman Marcus. It has not ranked independently in the Top 2000. Neiman Marcus had ranked No. 62 in the database before its acquisition.

How Saks Global seeks to bounce back from bankruptcy

Saks Global indicated it “is seeking relief through a number of customary ‘first day’ motions with the Court to facilitate a smooth transition into chapter 11 and operate in the ordinary course.” It said it expects the court to approve the motions “in short order.” Those motions include requests to:

• Honor all customer programs
• Make go-forward payments to vendors
• Continue employee payroll and benefits

Saks Global had written in its Jan. 14 statement that it had secured a financing commitment of about $1.75 billion. Of that, $1.5 billion came from an ad hoc group of the company’s senior secured bondholders. About $250 million would come from “incremental liquidity from the company’s asset-based lenders,” it explained.

It added that upon court approval, $1 billion of “debtor-in-possession financing from the Ad Hoc Group will provide ample liquidity to fund Saks Global’s operations and turnaround initiatives.”

Saks Global said the ad hoc group has also committed to making available $500 million in financing upon the retail operator’s emergence from bankruptcy.

When Saks acquired Neiman Marcus, Amazon had invested $475 million. Salesforce, Authentic Brands Group, M. Klein & Company, and G-III Apparel Group also helped finance the deal.

Amazon had asked for the federal judge in the case to block Saks Global’s bankruptcy financing plan on the grounds that Saks Global had mismanaged its business and left the online marketplace with an equity stake that is “now presumptively worthless.”

Executive leadership changes at Saks Global

In the Jan. 14 announcement, Saks Global noted that it appointed Geoffrey van Raemdonck as its new CEO. It made the move effective immediately.

Van Raemdonck previously served as CEO of Neiman Marcus Group before Saks Global acquired it in 2024. He succeeds Richard Baker, who stepped down from his role as executive chairman and CEO the day before the announcement. Van Raemdonck also joins Saks Global’s chief financial officer Brandy Richardson, who was chief financial officer alongside him at Neiman Marcus.

The move to install Van Raemdonck comes within two weeks of Saks Global announcing Baker would replace then-outgoing CEO Marc Metrick.

Van Raemdonck has expanded the Saks Global executive leadership team, naming:

• Darcy Penick: President, chief commercial officer, Saks Global. Penick will oversee stores, marketing, buying, digital, analytics and customer care.
• Lana Todorovich: Chief of global brand partnerships, Saks Global. Todorovich will lead the retailer’s efforts with brand partners at an enterprise level.

“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 the 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.”

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