Saks Global Files Bankruptcy, Taps Veteran CEO for $1.75B Revival

NEW YORK, NY – January 14, 2026 – In a seismic move that reverberates across the luxury retail landscape, Saks Global Holdings LLC has filed for voluntary Chapter 11 bankruptcy protection. The conglomerate, which owns iconic nameplates including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, announced it has secured $1.75 billion in financing to steer it through a radical transformation aimed at saving the debt-laden empire.

This strategic bankruptcy, filed in the U.S. Bankruptcy Court for the Southern District of Texas, is the dramatic culmination of a high-risk gamble that failed to pay off: the company's $2.7 billion acquisition of rival Neiman Marcus Group in 2024. The deal, intended to create an unrivaled luxury titan, instead saddled the company with crippling debt, leading to a missed $100 million interest payment in December 2025 that triggered the filing. Court documents reveal assets and liabilities each ranging between $1 billion and $10 billion, with a creditor list numbering over 10,000.

Despite the filing, the company stressed that its stores and e-commerce sites—spanning Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call, and Horchow—will remain open and operational. A key part of the restructuring plan is the immediate appointment of Geoffroy van Raemdonck, the former CEO of Neiman Marcus Group, to helm Saks Global as its new Chief Executive Officer, replacing the departing Richard Baker.

The Architect of the Turnaround

Central to the restructuring plan is the return of Geoffroy van Raemdonck. His appointment is a clear signal to the market that this is not a liquidation but a calculated effort to rebuild, led by a leader with a specific and highly relevant track record. Van Raemdonck famously navigated Neiman Marcus through its own Chapter 11 bankruptcy in 2020, successfully shedding over $4 billion in debt and steering the retailer back to stability.

He is reassembling his former leadership team to tackle the challenge. Brandy Richardson, who served as CFO under van Raemdonck at Neiman Marcus, will assume the same role at Saks Global. They are joined by other seasoned executives, including Darcy Penick as President and Chief Commercial Officer and Lana Todorovich as Chief of Global Brand Partnerships.

"Geoffroy has a proven track record driving transformative growth at Neiman Marcus Group and other brands, building trusted relationships within these organizations and throughout the industry," said Paul Aronzon, a member of Saks Global's Board of Directors. "His leadership will help advance the Company's focus on stability and long-term value creation."

Van Raemdonck himself framed the moment as an opportunity. "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," he stated. "I look forward to serving as CEO and continuing to transform the Company so that Saks Global continues to play a central role in shaping the future of luxury retail."

A Calculated Collapse and a Path Forward

The financial lifeline secured by Saks Global is substantial. A $1.75 billion package, comprised of $1.5 billion from a group of senior bondholders and $240 million from asset-based lenders, is designed to provide both immediate stability and a foundation for future growth. Upon court approval, $1 billion will be available as debtor-in-possession (DIP) financing, allowing the company to fund its operations, restock depleted inventory, and make good on payments to critical vendors. An additional $500 million in financing is committed for when the company emerges from bankruptcy, an event it hopes to achieve later this year.

The immediate priority for this cash infusion is to restore confidence. In the months leading up to the filing, the company's financial distress became apparent as it delayed payments to suppliers, leading to strained relationships and noticeable gaps on store shelves. The DIP financing is intended to reverse this trend, ensuring that the latest collections from top luxury brands are available to customers.

Redrawing the Luxury Map

The restructuring will involve more than just financial engineering. The company has explicitly stated it is "evaluating its operational footprint to invest resources where it has the greatest long-term potential." For the retail industry, this is clear language for significant store closures. The 2024 merger created a portfolio with considerable overlap, particularly in major metropolitan markets.

Industry analysts anticipate closures of Saks Fifth Avenue and Neiman Marcus stores in cities where they directly compete, such as Chicago, Atlanta, Boston, and Beverly Hills. The off-price division is also expected to shrink, with speculation that up to half of Saks OFF 5TH locations could be shuttered. This pruning of the company's physical presence—which includes 70 full-line luxury stores—aims to shed costly leases and refocus investment on profitable locations and the robust e-commerce platforms.

This strategy comes as many top-tier luxury brands are moving in the opposite direction, purchasing their flagship real estate to gain greater control over their brand presentation and customer experience. While Saks Global sheds properties, its most valuable brand partners are doubling down on physical retail, creating a dynamic that the new leadership will have to carefully navigate.

Ripple Effects Across the Luxury Ecosystem

Saks Global's bankruptcy sends shockwaves far beyond its own balance sheet. The court filings reveal the deep entanglement of the world's most prestigious luxury houses, with Chanel, Kering (owner of Gucci), and LVMH listed among the largest unsecured creditors. These brands, which have relied on the department store model for wholesale distribution for decades, now face uncertainty and potential losses.

The filing highlights a broader crisis for the multi-brand department store model, which is under pressure from the powerful shift by luxury brands toward their own direct-to-consumer channels and a general softening in the global luxury market. Competitors like Nordstrom may be positioned to capture market share from shoppers seeking stability, especially in suburban markets where a Saks or Neiman Marcus closure could leave a significant void.

Ultimately, van Raemdonck's task is monumental. He must steer the conglomerate through a complex legal process, shrink its physical footprint, and rebuild frayed relationships with vital brand partners. Most importantly, he must convince discerning luxury consumers that the tarnished icons of Saks Fifth Avenue and Neiman Marcus can emerge from bankruptcy not just solvent, but once again as the undisputed arbiters of style and service. The success of this high-stakes gamble will not only determine the fate of America's most storied department stores but could also write the next chapter for the entire luxury retail industry.