New York (AFP) – US luxury retail group Saks Global, the heavily indebted parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, said Wednesday it had filed for bankruptcy. The group has struggled with a substantial debt load and said in a statement it initiated bankruptcy proceedings in the US Bankruptcy Court for the Southern District of Texas.
Saks Global said it was evaluating its operational footprint to invest where there is “the greatest long-term potential.” The organization said it had appointed former Neiman Marcus Group head Geoffroy van Raemdonck as its new CEO with immediate effect, replacing Richard Baker. “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,” said van Raemdonck.
The retailer noted its stores, which include Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow, will remain open after it received a fundraising commitment. Saks Global announced Wednesday it had secured $1.75 billion in financing, which it said would position the company “for a strong and stable future while it continues to provide customers with unparalleled multi-brand luxury shopping experiences.” Some of that package, it said, would provide liquidity to fund Saks Global’s operations and turnaround initiatives. Another tranche of financing will be available when the company emerges from bankruptcy.
Saks Global had defaulted on a $100 million interest payment related to its nearly $2.7 billion acquisition of Neiman Marcus in 2024. The New York-based group, which traces its history back more than 150 years and has about 70 stores, has struggled in a difficult economic climate. While American consumers are spending, they remain price-conscious and have not been flocking to its flagship Saks Fifth Avenue store, which opened in 1924.
According to court documents, Saks Global estimated it had assets and liabilities of between $1 billion and $10 billion. The group said it planned to “honor all customer programs, make go-forward payments to vendors, and continue employee payroll and benefits.” “Throughout this process, Saks Global will remain focused on what has always defined the company: exceptional brands, trusted relationships, and an unwavering commitment to its loyal customers,” the group said in its statement.
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