The company behind luxury brands Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman filed for bankruptcy after failing to make interest payments. Saks Global filed for Chapter 11 protection on Tuesday after missing a $100 million interest payment on Dec. 30, in connection with the $2.65 billion purchase of Neiman Marcus in 2024. In a press release, the firm struck an upbeat tone, saying it had secured “a financing commitment of approximately $1.75 billion,” which would “provide ample liquidity to fund Saks Global’s operations and turnaround initiatives.” Its stores will remain open and commitments honored to customers, vendors, and staff. “They borrowed a lot more money than they should have for a company that isn’t growing—it’s a slow-melting ice cube,” Tim Hynes, the global head of credit research at Debtwire, told the Washington Post, referring to the Neiman Marcus deal. Saks said Geoffroy van Raemdonck, who was chief executive at Neiman Marcus when it was sold, will replace Richard Baker as CEO, effective immediately.
Read it at The Washington Post
