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The
company’s top executive, Marc Metrick, stepped down earlier this
month as the firm struggled with debt it took on for its $2.65
billion acquisition of Neiman Marcus in 2024. He was succeeded
as CEO by executive chairman Richard Baker, who quit both roles
earlier this week and was replaced as chief execute by Geoffroy
van Raemdonck.
The company is also facing increasing competition as it tries to
winnow down its heavy debt load, while its customers have balked
against extravagant price hikes.
The company said it was “evaluating its operational footprint to
invest resources where it has the greatest long-term potential.”
Saks said it did not expect its operations to be disrupted and
it would continue to honor its customer programs and pay its
suppliers and employees.
It said it has financing commitments of $1.5 billion from some
of its creditors and another $240 million in “incremental
liquidity” from its lenders.
Hudson’s Bay Co., the Canadian owner of Saks Fifth Avenue, split
off the luxury retailer’s e-commerce business, Saks.com, in
2021. After acquiring Neiman Marcus three years later, Saks
Fifth Avenue changed its name to Saks Global.
Global sales of luxury goods are expected to contract for the
second straight year in 2026 as consumers anxious about the
global economy pare back their spending, according to a study by
Bain & Co. consultancy released in November.
Hudson’s Bay, Canada’s oldest company, moved to begin
liquidating all but six of its stores in March 2025.
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