Saks Global Files for Chapter 11 Bankruptcy
WWD • • business
Key Points:
- Saks Global filed for Chapter 11 bankruptcy after acquiring Neiman Marcus Group for $2.7 billion just over a year ago, burdened by heavy debt and strained vendor relations.
- Geoffroy van Raemdonck has replaced Richard Baker as CEO to lead the company through bankruptcy proceedings, supported by a new leadership team including luxury retail veterans.
- The company faces more than 10,000 creditors, including major fashion vendors, with debts estimated between $1 billion and $10 billion, heavily impacted by $2.8 billion in bonds tied to the Neiman Marcus acquisition and refinancing.
- Vendors, especially smaller designers, are at risk of significant financial losses as secured lenders take priority in bankruptcy, and the company must quickly stabilize
