Saks files for bankruptcy as CEO departs

Saks Global, which owns iconic department store Saks, as well as Neiman Marcus and Bergdorf Goodman, has officially filed for Chapter 11 bankruptcy.

As reported on Watch Insider, Saks had been preparing for this moment after missing a $100 million loan repayment to creditors last month. The Chapter 11 filing means that the company can continue to operate while it works out a plan to survive

CEO Richard Baker, who stepped into the role from his position as executive chairman just two weeks ago, is leaving to reportedly facilitate a restructuring of the company’s significant debt.

Geoffroy van Raemdonch, the former CEO of Neiman Marcus (which Saks acquired in 2024), has taken the reins.

The reported numbers involved are eye-watering, with billions of dollars in liabilities. Creditors including Chanel, Gucci, and LVMH are owed tens or hundreds of millions of dollars.

As expected, Saks Global has taken on a Debtor-in-Possession loan worth $1 billion, to provide an instant cash injection to steady the ship and then, eventually, to turn the ship around.

This latest news will do nothing to ease the concern of other worried vendors, who are suffering from slow or non-existent payments and issues with order fulfilment and inventory.