Saks Global Files Chapter 11 After Debt-Laden Neiman Marcus Deal
Saks Global filed Chapter 11 after a $2.7B Neiman Marcus acquisition left heavy debt; operations continue while new CEO Geoffroy van Raemdonck leads restructuring efforts.
Overview
Saks Global, owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, filed for Chapter 11 in the Southern District of Texas after missing a $100 million interest payment.
The company secured about $1.75 billion in debtor-in-possession financing from senior secured bondholders and asset-based lenders to support stores, e-commerce, and payroll during the restructuring.
Geoffroy van Raemdonck, formerly Neiman Marcus CEO, was appointed CEO immediately; Richard Baker stepped down after orchestrating the $2.7 billion acquisition that increased leverage.
High debt—about $2.0–2.2 billion tied to the 2024 acquisition—plus vendor disputes, weaker luxury demand, and brands selling direct eroded margins and inventory ahead of holidays.
Stores and online operations will remain open, but restructuring may include lease renegotiations, asset sales, and potential closure or repurposing of flagship locations.
Analysis
Center-leaning sources frame Saks Global primarily as a debt-driven failure, using loaded terms ("saddled," "collapsed," "debt-fueled") and emphasizing leadership departures, missed payments, and inventory gaps. Editorial choices prioritize management blame and strategic missteps; analyst condemnations are source content quoted to reinforce that narrative rather than originating from reporters.
Sources (9)
FAQ
Chapter 11 allows Saks Global to reorganize its debts while continuing operations; stores and e-commerce remain open with $1.75 billion in debtor-in-possession financing to support payroll and suppliers during restructuring.
Saks Global filed due to heavy debt of about $2.65 billion from its 2024 Neiman Marcus acquisition, missed interest payments, weaker luxury demand, vendor disputes, and competition from direct brand sales.
Geoffroy van Raemdonck, former Neiman Marcus CEO, was appointed CEO; Marc Metrick stepped down earlier, and Richard Baker quit as CEO and executive chairman after the acquisition.
Yes, stores, e-commerce, and customer programs will continue uninterrupted; the company expects no disruptions and plans to pay suppliers and employees.
Global luxury goods sales are expected to contract for the second straight year in 2026 due to consumer anxiety over the economy, per Bain & Co.
History
5 sources