U.S. luxurious retailer Saks International recordsdata for chapter

US luxurious retail group Saks International, the mum or dad firm of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, mentioned Wednesday, January 14, it had filed for chapter.

The group has struggled with a considerable debt load and mentioned in an announcement it initiated chapter proceedings (Chapter 11) within the US Chapter Courtroom for the Southern District of Texas.

Saks International mentioned it was evaluating its operational footprint to speculate the place there’s “the best long-term potential.”

The group mentioned it had appointed former Neiman Marcus Group head Geoffroy van Raemdonck as its new CEO with quick impact, changing Richard Baker, who succeeded Marc Metrick lower than two weeks in the past.

“It is a defining second for Saks International, and the trail forward presents a significant alternative to strengthen the inspiration of our enterprise and place it for the longer term,” mentioned van Raemdonck.

The retailer famous its shops, which embrace Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Final Name and Horchow, will stay open after it obtained a fundraising dedication.

Certainly, Saks International introduced on Wednesday it had secured USD 1.75 billion in financing, which it mentioned would place the corporate “for a robust and steady future whereas it continues to supply prospects with unparalleled multi-brand luxurious procuring experiences.” A few of that package deal, it mentioned, would offer liquidity to fund Saks International’s operations and turnaround initiatives. One other tranche of financing shall be obtainable when the corporate emerges from chapter.

Saks International had defaulted on a USD 100 million curiosity fee associated to its almost USD 2.7 billion acquisition of Neiman Marcus in 2024.

The New York-based group, which traces its historical past again greater than 150 years and has about 70 shops, has struggled in a troublesome financial local weather. Whereas American shoppers are spending, they continue to be price-conscious and haven’t been flocking to its flagship Saks Fifth Avenue retailer, which opened in 1924.

Based on courtroom paperwork, Saks International estimated it had property and liabilities of between USD 1 billion and USD 10 billion.

The group mentioned it deliberate to “honor all buyer applications, make go-forward funds to distributors, and proceed worker payroll and advantages.”

“All through this course of, Saks International will stay targeted on what has at all times outlined the corporate: distinctive manufacturers, trusted relationships and an unwavering dedication to its loyal prospects,” the group mentioned in its assertion.