NEW YORK, Jan 14 (Reuters) - High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday in one of the largest retail collapses since the pandemic, barely a year after a deal that brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof.
The move cast uncertainty over the future of U.S. luxury fashion, though the retailer said early on Wednesday its stores would remain open for now after it finalized a $1.75 billion financing package and appointed a new chief executive. Former CEO of Neiman Marcus department store chain Geoffroy van Raemdonck will replace Richard Baker, who was the architect of the acquisition strategy that saddled Saks Global with debt.
The company also appointed former Neiman Marcus executives Darcy Penick and Lana Todorovich as chief commercial officer and chief of global brand partnerships at Saks Global, respectively.
Saks Global estimated in documents filed in U.S. Bankruptcy Court in Houston, Texas, that its assets and liabilities were in a range of $1 billion to $10 billion.
The court process is meant to give the luxury retailer room to negotiate a debt restructuring with creditors or find a new owner. Failing that, the company may be forced to shutter.
