At a Glance
- Luxury retailer Saks Global filed Chapter 11 in Texas on Wednesday
- $1.75 billion in new financing lined up to keep doors open
- CEO turnover: Marc Metrick out, Geoffroy van Raemdonck now leads
- Why it matters: Shoppers’ loyalty programs, paychecks, and supplier payments protected for now
Luxury department-store operator Saks Global has sought Chapter 11 bankruptcy protection in Texas, aiming to shrink a debt pile swollen by its $2.65 billion buyout of rival Neiman Marcus while promising customers and workers that day-to-day operations will stay on track.
Leadership Shakeup
The filing caps a turbulent month for the New York-based private company. Marc Metrick exited the chief executive post earlier in November after steering the 2024 Neiman deal. Executive chairman Richard Baker briefly stepped in, only to resign both roles days ago. The board elevated former Neiman Marcus CEO Geoffroy van Raemdonck to the top job this week.
Cash to Keep the Lights On
Saks Global said it has secured $1.5 billion in debtor-in-possession credit from existing lenders and an extra $240 million in incremental liquidity. The company stated it “does not expect its operations to be disrupted” and plans to:
- Honor customer loyalty programs
- Pay employees on schedule
- Meet supplier invoices
Market Pressures
The Chapter 11 move follows months of balance-sheet strain. Hudson’s Bay Co., Canada’s oldest corporation, carved out Saks.com as a stand-alone e-commerce unit in 2021, then rebranded the combined Saks Fifth Avenue-Neiman Marcus group as Saks Global after the 2024 merger. Bain & Co. projects global luxury sales will contract for a second straight year in 2026 as shoppers spooked by economic uncertainty trim discretionary spending.
Store Footprint Review
Management told the court it is “evaluating its operational footprint to invest resources where it has the greatest long-term potential.” Hudson’s Bay began liquidating all but six of its own department stores in March 2025, underscoring broader retrenchment across the banner’s historic retail network.
Case Filing
The petition was lodged in the U.S. Bankruptcy Court for the Southern District of Texas. Sophia A. Reynolds first reported the development Wednesday; News Of Losangeles carried the initial dispatch.
Key Takeaways
- Bankruptcy is a financing maneuver, not a shutdown-stores stay open under court protection
- Leadership churn signals board urgency to reset strategy
- Heavy acquisition debt collided with weakening luxury demand
- New money keeps payroll, perks, and suppliers whole while restructuring proceeds
