Saks Global recordsdata for chapter. CEO Baker leaves, van Raemdonck enters | EUROtoday

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Saks Global has filed for chapter underneath voluntary chapter proceedings (underneath the US Chapter 11) within the United States Bankruptcy Court for the Southern District of Texas and on the identical time, its CEO – appointed on January 2, i.e. lower than two weeks in the past – Richard Baker, says goodbye to the posh purchasing large. He will likely be changed by Geoffroy van Raemdonck, presently a member of the board of administrators of Moncler Spa, who stated he’s “looking forward to taking on the role of CEO and continuing the transformation of the company so that Saks Global continues to play a central role in the future of luxury retail” we learn within the press launch launched.

However, the Saks Global group assured that it “will honor all customer programs, make future payments to suppliers and continue to guarantee salaries and benefits to employees.” Saks introduced that it has secured roughly $1.75 billion in financing from its collectors. The financing plan “will provide the necessary liquidity to finance Saks Global’s operations and turnaround initiatives,” the corporate stated.

Founded greater than 150 years in the past, Saks is near submitting for chapter underneath the Chapter 11 to deal with rising losses and a big debt load.
Baker was president of Hudson’s Bay Co. when it purchased Saks Fifth Avenue in 2013 and was the lead architect of Saks’ acquisition of rival Neiman Marcus Group for $2.65 billion in 2024, creating Saks Global. Van Raemdonck was CEO of Neiman Marcus Group from 2018 to 2024, resigning when Saks acquired it. The deal saddled the brand new firm with greater than $2 billion in new debt, simply as world luxurious gross sales slowed. Suppliers started withholding provides when Saks proved unable to pay them in full and on time, exacerbating the corporate’s issues and contributing to low inventories. Saks additionally had not honored a $100 million fee, due December 30, associated to its acquisition of Neiman Marcus. Its debt now quantities to round 5 billion {dollars}, in opposition to an annual turnover of lower than 6 billion. Unlike rivals Bloomingdale’s and Nordstrom, Saks was not keen on chasing the marginally extra accessible luxurious market. Even this selection wouldn’t have helped the accounts.

However, Saks’ actual property itself stays enviable – house to Saks Fifth Avenue, Saks Off fifth, Bergdorf Goodman and Neiman Marcus shops – with roughly 1.2 million sq. ft of strategically positioned retail house. The shops are coated by historic leases that preserve rents nicely under market, and reciprocal easement agreements give tenants a say in how every associated mall is redeveloped. This kind of entrenched management can translate into actual worth for collectors who, in a chapter atmosphere, have a very good probability of gaining management of the corporate.