Major luxury retailer files for bankruptcy protection after £3.5bn debt | World | News
The Chapter 11 process is a type of reorganisation bankruptcy under US law that allows a business to restructure its debts and operations while continuing to operate, with the goal of emerging financially healthy. It provides legal protection from creditors’ collection efforts through an “automatic stay”.
Saks Global said this was due to its need to restructure under the weight of significant debt taken on following its acquisition of rival Neiman Marcus in 2024.
The filing comes after weeks of leadership upheaval at the top of the business. In early January, Marc Metrick stepped down as chief executive, with executive chairman Richard Baker briefly taking over the role.
Less than two weeks later, Baker also exited the CEO position as the company prepared for court protection.
Saks Global said former Neiman Marcus chief executive Geoffroy van Raemdonck will now lead the company through the bankruptcy process.
He described the move as a turning point for the business, saying the restructuring offers an opportunity to stabilise operations and reposition the group for the future of luxury retail.
Saks Fifth Avenue and Neiman Marcus have collectively incurred $4.7 billion (£3.5 billion) in total debt.
Saks Global was created in 2024 when Hudson’s Bay Company, the owner of Saks Fifth Avenue, bought Neiman Marcus for $2.65 billion (around £2.1 billion).
The deal was intended to create a powerful luxury retail group capable of negotiating better terms with brands and drawing shoppers back into physical stores.
Instead, the enlarged business struggled under its debt burden, with reports emerging last year that it was falling behind on payments to suppliers. Those concerns fuelled speculation about the company’s financial stability months before the bankruptcy filing.
In a statement announcing the Chapter 11 process, Saks Global said it had secured $1 billion (£790 million) in debtor-in-possession financing to keep the business operating during the restructuring.
The company added that its bondholders have also committed a further $500 million (£395 million) in funding once it emerges from bankruptcy, aimed at supporting a wider turnaround of the business.
