US-based luxury retailer Saks Global has secured $1.75bn in committed capital and filed for voluntary Chapter 11 protection as part of a financial restructuring.
The company commenced proceedings in the US Bankruptcy Court for the Southern District of Texas, outlining plans to stabilise its finances while pursuing an operational transformation.
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The financing package consists of a $1.5bn commitment from an ad hoc group of senior secured bondholders, together with $240m of incremental liquidity provided by asset-based lenders.
Subject to court approval, $1bn will be made available as debtor-in-possession financing to fund operations during the Chapter 11 process.
An additional $500m from the bondholder group is expected to become available once the company emerges from bankruptcy, which is anticipated later this year.
Saks Global said the transaction is aimed at strengthening its balance sheet and maintaining liquidity as it reassesses its operational footprint, with investment to be directed towards areas offering the strongest long-term potential.
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By GlobalDataAs part of the filing, the company has submitted several customary first-day motions seeking approval to continue business as usual.
These include requests to honour customer programmes, make ongoing payments to vendors, and maintain employee payroll and benefits.
Saks Global said that stores and e-commerce operations across Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow will remain open throughout the restructuring process.
Alongside the Chapter 11 filing, the group announced changes to its senior leadership team.
Geoffroy van Raemdonck has been appointed CEO with immediate effect, succeeding Richard Baker, who became CEO earlier this month and has stepped down as executive chairman and CEO.
Van Raemdonck previously served as CEO of the Neiman Marcus Group before its acquisition by Saks Global in 2024.
He will work alongside CFO Brandy Richardson, who also previously held the CFO role at the Neiman Marcus Group.
The leadership team is being expanded further with the appointment of Darcy Penick as president and chief commercial officer, overseeing stores, marketing, buying, digital, analytics and customer care.
Lana Todorovich has also been named chief of global brand partnerships, responsible for managing enterprise-level relationships with brand partners.
Commenting on the appointment, van Raemdonck said: “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.
“In close partnership with these newly appointed leaders and our colleagues across the organisation, we will navigate this process together with a continued focus on serving our customers and luxury brands.”
