Saks Global files for bankruptcy protection
CNBC • • business
Key Points:
- Saks Global, the parent company of the 159-year-old luxury department store, filed for Chapter 11 bankruptcy protection after running out of cash and failing to secure investors to finance its business.
- The Chapter 11 filing allows Saks to reorganize, clear debts, and potentially find a buyer to continue operations, with former Neiman Marcus CEO Geoffroy van Raemdonck appointed as the new chief executive.
- Saks secured a $1.75 billion financing commitment to strengthen its balance sheet, addressing previous struggles to obtain a debtor-in-possession loan necessary to maintain operations during bankruptcy.
- The company's financial troubles stem from a heavily debt-financed $2.7 billion acquisition of Neiman Marcus in 2024, which failed to deliver the
