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(Sharecast News) - High-end US department store chain Saks Global has filed for bankruptcy protection, it was confirmed on Wednesday.
The New York-based owner of the iconic Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus filed for Chapter 11 bankruptcy protection in Houston, Texas, after failing to make a $100m interest payment to bondholders in December.
In a statement, newly-appointed chief executive Geoffroy 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."
Saks added that it had secured a $1.75bn financing commitment, including $1.5bn from senior secured bondholders and around $240m from asset-based lenders.
Saks acquired Neiman Marcus and Bergdorf Goodman in December 2024 for $2.7bn. However, the deal massively ramped up the group's debts, and faced with a slump in the demand for luxury goods, the retailer almost immediately began to struggle.
The Chapter 11 application comes just months after creditors gave the retailer a $600m lifeline by writing off some of the $2.2bn debt pile.
Chief executive Marc Metrick stepped down earlier this month after 30 years with the company, to be replaced by executive chair Richard Baker.
However, Saks confirmed on Wednesday that van Raemdonck would now take the top job, with Baker stepping down as both executive chair and chief executive.
Van Raemdonck previously served as chief executive Neiman Marcus Group prior to the 2024 acquisition.
A number of other former Neiman Marcus executives have also been appointed, including Darcy Penick as chief commercial offer.
Van Raemdonck said: "In close partnership with these newly-appointed leaders and our colleagues across the organisation, we will navigate this process together.
"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."
As part of the Chapter 11 process, Saks said it would evaluate its operational footprint, "to invest resources where it has the greatest long-term potential.
"This approach reflects an effort to focus the business in areas where the company's luxury retail brands are best position for sustainable growth."
Saks currently has 70 full-line locations alongside additional off-price outlets and dedicated websites.