Saks Global Enterprises is reportedly considering a Chapter 11 bankruptcy filing as it grapples with significant liquidity issues. The parent company of Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman is facing a debt payment exceeding $100 million due by the end of December.
Saks Faces Financial Challenges
According to sources close to the situation, Saks is exploring emergency financing options. These options might include asset sales aimed at boosting cash reserves. However, a bankruptcy filing appears to be the company’s last resort.
Potential Leadership Changes
Recent reports suggest that CEO Marc Metrick may be preparing to step down from his position. Metrick joined Saks Global in December 2024 following the company’s $2.7 billion acquisition of Neiman Marcus Group. This deal expanded Saks’ luxury portfolio significantly, including the addition of Bergdorf Goodman.
Store Closures and Job Cuts
In an effort to combat financial strains, Saks has reduced its workforce and closed multiple stores. The company plans to continue this trend, with ongoing closures anticipated for both Saks Fifth Avenue and Saks OFF 5TH locations. A significant portion of their Canadian stores has also shut down in the past year.
Strategic Moves
- Saks may seek to sell a minority stake (up to 49%) in Bergdorf Goodman, with a valuation around $1 billion.
- There are reports of at least four interested bidders for this stake.
- The potential transaction could happen as soon as next year.
As Saks navigates these tumultuous times, the company continues to evaluate its operational strategies while attempting to maintain its luxury brand identity in the competitive retail landscape.
