Saks files for bankruptcy, leaving the future of its stores up in the air
Luxury company becomes latest retailer to file bankruptcy
- Saks Global, the parent company of luxury retailers including Saks Fifth Avenue and Neiman Marcus, has filed for Chapter 11 bankruptcy in the US.
- The company secured $1.75 billion in creditor financing to support its restructuring and immediately appointed Geoffroy van Raemdonck as its new CEO.
- This move follows a period of unsustainable debts, inflation, increased costs, trade wars, and a shift towards online shopping, exacerbated by a missed interest payment on its Neiman Marcus acquisition.
- While Chapter 11 allows for business reorganization rather than liquidation, the filing creates an uncertain future for its numerous high-end retail locations and could lead to store closures.
- Saks Global stated it would honour customer programmes, pay vendors, and continue employee payroll and benefits, while evaluating its operational footprint for long-term potential.