Saks Global, the parent company of the 159-year-old luxury department store chain, has filed for bankruptcy after running out of cash.
Importantly, the retailer filed for Chapter 11 protection from its creditors, which will give it time to reorganize its business and potentially find a buyer.
The company also announced that former Neiman Marcus CEO Geoffroy van Raemdonck will immediately take over as chief executive officer (CEO).
Saks Global has secured a financing commitment of $1.75 billion U.S. in a bid to strengthen its balance sheet and keep the lights on at its department stores, including its flagship “Saks Fifth Avenue” location in New York City.
In recent weeks, the company had trouble lining up $1 billion U.S. in financing for a debtor-in-possession loan, which provides the funds to keep a business running during Chapter 11.
A bankruptcy filing by Saks Global was seen as inevitable on Wall Street after the company missed an interest payment to bondholders in late December.
Saks currently runs nearly 200 department stores across the U.S., as well as luxury brands Neiman Marcus and Bergdorf Goodman.
The future of Saks Global and its various parts will become clearer in coming weeks as bankruptcy proceedings play out in court and management looks for new investors.
Saks has struggled since the Covid-19 pandemic forced it to shut many of its department stores, and after it acquired Neiman Marcus in 2024 for $2.7 billion U.S.
Much of the Neiman Marcus purchase was financed with debt and Saks never recovered, say analysts.
Last summer, Saks Global secured $600 million U.S. in new financing and sold off key real estate assets to raise cash, which has since run out.
Saks Global is a private company, controlled by various investors. As such, its stock does not trade on a public exchange.
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