The world’s biggest footwear players are among the largest unsecured creditors in Saks Global’s Chapter 11 bankruptcy.
After weeks of intense speculation and many twists and turns, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman and other nameplates made the move in the U.S. Bankruptcy Court for the Southern District of Texas late Tuesday. Saks Global secured $1.75 billion in financing from bondholders, which will allow it to operate during the bankruptcy process.
The filing revealed that Christian Louboutin is the 13th largest unsecured creditor, with the brand owed $21.6 million. Jimmy Choo parent Capri Holdings, which owns Michael Kors and Jimmy Choo (and recently sold Versace to Prada Group) is the 4th largest unsecured creditor, with its tally at $33.3 million.
Of course, many of the major fashion houses listed on top of the unsecured creditors’ list also derive a large portion of their businesses from footwear and accessories. Chanel is owed a whopping $136 million, while luxury conglomerate Kering, parent of Gucci, Balenciaga, Saint Laurent and more, is owed $59.9 million.
In total, over 10,000 creditors are cited in the filing. Small independent brands across the fashion universe are at the greatest risk during a time of change and challenge across the luxury business and now must go to court to try and recoup their losses in a complicated situation.
The company said in the filing that both assets and debts are each at between $1 billion and $10 billion, but those numbers will evolve. The retailer’s debts include $2.2 billion in bonds Saks used to buy Neiman Marcus, a acquisition that was only completed a year ago and was a major factor in the financial collapse of the overall business. Saks also took on $600 million in debt during a refinancing this summer.
Richard Baker, the real estate executive who engineered the controversial mega-merger between Saks and Neiman Marcus, stepped down as CEO of Saks Global over the weekend after a little more than a week on the job (He took the reins following Marc Metrick’s departure on Jan. 2.)
WWD first revealed news of Baker’s exit on Saturday, and also reported Geoffroy van Raemdonck, former CEO of Neiman Marcus Group, was among the top candidates to step in during the bankruptcy. The move was made official a few days later.
“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,” van Raemdonck said in a statement.
The new chief moved quickly to tap two well-known luxury executives, both of whom worked alongside him at Neiman Marcus, to help steer the ship. Darcy Penick, former president of Bergdorf Goodman, was named president and chief commercial officer, overseeing stores, marketing, buying, digital, analytics and customer care. Lana Todorovich is taking on the role of chief of global brand partnerships. Brandy Richardson, Saks Global’s chief financial officer, is already in place.
“In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands. 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,” van Raemdonck said.
This is a developing story.
