WASHINGTON: US luxury retail group Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, said Wednesday it had filed for bankruptcy.
The group has struggled with a substantial debt load and said in a statement it had initiated bankruptcy proceedings in the US Bankruptcy Court for the Southern District of Texas.
Saks Global said it had appointed former Neiman Marcus Group head Geoffroy van Raemdonck as its new CEO with immediate effect, replacing Richard Baker.
The group said it was evaluating its operational footprint to invest where there is "the greatest long-term potential."
"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," said van Raemdonck.
Saks Global said its stores would remain open for now after it secured a financing commitment.
The retailer said it had secured $1.75 billion in financing, adding that its financing package would position the company "for a strong and stable future while it continues to provide customers with unparalleled multi-brand luxury shopping experiences."
According to court documents, Saks Global estimated it had assets and liabilities of between $1 billion and $10 billion.
Saks had defaulted on a $100 million interest payment related to its nearly $2.7 billion acquisition of Neiman Marcus in 2024.
In its statement, the group pledged to "honor all customer programs, make go-forward payments to vendors, and continue employee payroll and benefits."