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4h ago

Saks Global Names Van Raemdonck to Steer Chapter 11, Lines Up $1.75 Billion for Turnaround

Creditors are betting his luxury-brand ties will accelerate restocking through repaired supplier relationships.

Geoffroy van Raemdonck, photographed in 2023.
eoffroy van Raemdonck speaks onstage during the 74th Annual Parsons Benefit at Cipriani Wall Street on May 24, 2023 in New York City.

Overview

  • The parent of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman filed for Chapter 11 and named Geoffroy van Raemdonck CEO to lead the restructuring.
  • The company announced about $1.75 billion in financing commitments designed to support the process and fund go-forward payments to vendors.
  • Suppliers have paused shipments after delayed payments, with Bloomberg reporting Chanel, Kering and LVMH are owed roughly $225 million, and court filings show nearly $26 million owed to LVMH.
  • Saks Global said it is evaluating its operational footprint to focus resources on locations with stronger potential, a review that could result in store reductions.
  • Van Raemdonck brings bankruptcy know-how from Neiman Marcus and vendor-side experience at Louis Vuitton and Ralph Lauren, while bondholders are providing $1.5 billion in bankruptcy financing according to Business of Fashion.