On January 14, U.S. luxury department store group Saks Global announced that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In an effort to rebuild its business foundation amid intensifying competition in the luxury market, the company has secured approximately $1.75 billion in financing commitments and has entered a formal restructuring process.
Saks Global is a New York–based privately held company that owns some of the most iconic luxury department store brands in the United States, including Bergdorf Goodman, Saks Fifth Avenue, and Neiman Marcus. The Chapter 11 filing was made in the U.S. Bankruptcy Court for the Southern District of Texas.
The filing does not signal a cessation of operations. According to the company’s official announcement, all brand stores and e-commerce platforms will remain open and operating as usual. Customer programs will continue to be honored, and payments to vendors as well as employee wages and benefits are expected to be maintained throughout the restructuring process.
Leadership Changes and a New Restructuring Framework
Ahead of the Chapter 11 filing, Saks Global’s leadership structure underwent a series of significant changes. The company’s $2.65 billion acquisition of Neiman Marcus in 2024, while a bold move aimed at industry consolidation, ultimately placed additional strain on its balance sheet.
In early January, then-Chief Executive Officer Marc Metrick stepped down. He was succeeded by Executive Chairman Richard Baker, who assumed the CEO role but resigned from both positions effective January 13.
The company is now led by Geoffroy van Raemdonck, former CEO of Neiman Marcus, who brings prior experience in guiding the retailer through its own restructuring. A new senior leadership team, largely composed of former Neiman Marcus Group executives, has been assembled, marking the beginning of a more structured turnaround phase.
Van Raemdonck commented: “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. 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. I look forward to serving as CEO and continuing to transform the Company so that Saks Global continues to play a central role in shaping the future of luxury retail.”
Financial Restructuring and Strategic Priorities
The newly secured financing consists of $1.5 billion from a group of senior secured bondholders and approximately $240 million in incremental liquidity through asset-based lending. Upon court approval, $1 billion in debtor-in-possession (DIP) financing will be made immediately available, with an additional $500 million committed for use upon emergence, which the company expects to complete later this year.
Looking ahead, Saks Global plans to reassess its operational footprint and allocate resources toward areas with the strongest long-term growth potential. This strategy is not positioned as a cost-cutting exercise alone, but rather as a broader effort to redefine the role of the luxury department store in a rapidly evolving retail landscape.
Impact on Suppliers and the Broader Industry
Despite assurances of business continuity, concerns are mounting among vendors—particularly independent and emerging brands. In some cases, Saks-related channels account for 40 to 50 percent of a brand’s total revenue, making the outcome of the restructuring especially consequential for cash flow and inventory management.
The challenges facing Saks Global are emblematic of a broader structural shift within the luxury department store sector. Neiman Marcus previously filed for Chapter 11 in 2020, while Lord & Taylor shuttered its physical stores and transitioned to an online-only model. Nordstrom has opted to go private, and Canada’s oldest company, Hudson’s Bay, has moved forward with large-scale store liquidations.
Restructuring as a Beginning, Not an Endpoint
Saks Global’s Chapter 11 filing is not merely a corporate crisis—it reflects a pivotal moment in which the luxury department store model itself is being forced to evolve. Shifts in technology, consumer expectations, and brand distribution strategies are redefining the industry’s foundations.
Ultimately, the success of Saks Global’s restructuring will depend on more than financial engineering. The company’s future will be shaped by how effectively it can reimagine customer experience, rebuild trust with brand partners, and adapt its ecosystem—including its supply chain—to meet the demands of the next era of luxury retail.
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