With Saks Global nearing bankruptcy with a filing expected by midweek, attention is turning to who will be in charge as the parent of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman goes through its restructuring.
Richard Baker, executive chairman of Saks Global, who took over as chief executive officer earlier this month upon the departure of Marc Metrick, is said to be leaving the company along with Ian Putnam, president, along with “everyone else who was in Baker’s camp,” one source said. Baker could not immediately be reached for comment Saturday.
Just who will fill that leadership void was an open question as of Saturday afternoon — the situation is very fluid with several different parties positioning to play a role in the future of the company.
One potential contender as the next CEO is former Neiman Marcus Group chief Geoffroy van Raemdonck.
Van Raemdonck could not be reached for comment, but his presence at the company would immediately help calm the nerves of vendors who feel burned by Saks Global. He successfully navigated Neiman’s through its 2020 bankruptcy and the pandemic and strengthened relationships with luxury designers through stepped up offerings of exclusives, more engaging events and in-store presentations, and broadening their distributions at Neiman’s doors and online. Van Raemdonck supported Neiman’s sales associates and stylists by providing them with new tools to better communicate and engage with Neiman’s affluent customer base.
Van Raemdonck left the Neiman Marcus Group in 2024 after the deal with Saks Global was completed, and last month joined Verneek, an AI tech company that helps retailers and brands deepen their customer engagement, as a strategic investor and a member of the advisory board. But he knows the Neiman’s business well and also all the key vendors that supply all Saks Global stores and could hit the ground running to turn the business around.
However, the retailer has been said to have cast a broader net in recent days, reaching out to other potential leaders as well.
There will also be plenty of other players with an interest in Saks Global’s direction going forward.
One is Pentwater Capital Management, which is led by Matt Halbower, founder, CEO and chief investment officer. The investor is said to be a key part of the financing package Saks Global lined up to see it through bankruptcy.
Halbower launched the fund in 2007 and now oversees over $3 billion in assets, with an emphasis on distressed investments.
Ultimately, a bankruptcy court judge is going to have the final word on many key decisions about the company’s future.
Sources said Saks Global has secured $250 million in asset based lending, essentially a bank loan against the inventory, as well as $1 billion in debtor-in-possession financing from Pentwater Capital. Although Baker was said to have been in talks with Amazon, which had invested in the original deal, that company is not believed to be involved in the bankruptcy negotiations. And Authentic Brands Group, the brand management company that is said to already control 51 percent of Saks Global’s intellectual property, is also not involved in the bankruptcy filing.
Vendors are believed to be owed $800 million by Saks Global. One source said that the brands viewed as “critical” to the company could be paid in full under the terms of a go-forward plan, while those deemed non-critical will receive a smaller percentage.
Again, those are decisions that will have to be approved by the bankruptcy court.
A bankruptcy will also allow the company to close a number of non-productive stores. As reported, sources said at least 20 Saks Fifth Avenue and Neiman Marcus locations have been identified for closure. There are 33 Saks Fifth Avenue stores, 36 Neiman Marcus stores, two Bergdorf Goodman doors, and a few Last Call stores. The company also operates the Horchow catalogue business as well as the Saks Off 5th off-price concept. Sources said as many as 50 Off 5th units could close as a result of the bankruptcy but if a Chapter 11 reorganization is approved, the Bergdorf Goodman and Saks Fifth Avenue Manhattan flagships are expected to remain in business.
Rumors of a bankruptcy have been circling the company since before it acquired the Neiman Marcus Group as Saks Fifth Avenue was already behind on its payments to own vendors.
Saks Global missed an interest payment of more than $100 million on Dec. 30, kickstarting a 30-day period in which it could work out a go-forward strategy. Bondholders bought $2.2 billion in debt to fuel the Neiman’s acquisition in December 2024 and then put in another $600 million in August.
