After months of speculation, Saks Global—the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—has filed for Chapter 11 bankruptcy. The company has secured about $1.75 billion in financing, which is intended to give it time to restructure its operations and debts.

Geoffroy van Raemdonck has been appointed CEO, effective immediately. He replaces Richard Baker, who stepped down as executive chairman and CEO on January 13.

“This is a defining moment for Saks Global,” van Raemdonck said. “The path ahead presents a meaningful opportunity to strengthen the foundation of our business. Together with our new leaders and colleagues, we will navigate this process while staying focused on serving our customers and luxury brands.”

The filing caps a turbulent period for the retailer. In December, the factoring firm Hilldun Corporation paused approvals on shipments to Saks after the company missed two weeks of payments. Hilldun’s CEO, Gary Wassner, had hoped payments would resume by year-end, but as of January 6 they had not.

On January 2, Saks announced that longtime CEO Marc Metrick was stepping down and would be replaced by then-executive chairman Richard Baker. By January 11, reports indicated Baker would also leave the company. Two days later, it was reported that Geoffroy van Raemdonck—former CEO of Neiman Marcus, which Saks later acquired—would take the helm.

To keep operating during the restructuring, Saks secured $1.75 billion in debtor-in-possession financing. An investor group led by Pentwater Capital Management and Bracebridge Capital will provide an immediate $1 billion cash infusion, while an additional $750 million is expected from asset-backed lenders led by Bank of America.

The bankruptcy is a significant setback for independent and emerging brands, many of which rely heavily on Saks Global’s retailers for a large portion—sometimes 50% or more—of their business. Although the financing is meant to help Saks pay its vendors, experts warn that smaller brands will likely be last in line to receive payment, if they are paid at all.

Paul Aronzon, a member of Saks Global’s board, expressed confidence in the new leadership: “Geoffroy has a proven record of driving growth at Neiman Marcus and building trusted relationships across the industry. His leadership will help advance the company’s focus on stability and long-term value creation.” He also thanked Richard Baker for his visionary leadership and contributions.

Frequently Asked Questions
Of course Here is a list of FAQs about Saks Globals bankruptcy filing designed to be clear direct and helpful for anyone from a curious shopper to a business analyst

Beginner Shopper Questions

1 Did Saks Fifth Avenue go bankrupt
No not exactly The parent company Saks Global which owns both Saks Fifth Avenue and the online retailer Sakscom has filed for Chapter 11 bankruptcy The iconic Saks Fifth Avenue stores are part of this larger corporate entity

2 What does filed for bankruptcy actually mean for Saks
In this case it means Saks Global is asking a court for legal protection from its creditors while it works on a plan to restructure its debts cut costs and try to become profitable again Its a reorganization not necessarily a shutdown

3 Will Saks Fifth Avenue stores close
Some locations may close as part of the companys restructuring plan to reduce costs However the goal of Chapter 11 is to keep the core business operating The company will likely evaluate underperforming stores

4 Can I still shop at Saks and Sakscom
Yes Operations are expected to continue as normal during the bankruptcy process You can still shop in stores and online use gift cards and return items

5 What happens to my Saks gift card or store credit
They should still be honored Companies in Chapter 11 typically continue to accept them to maintain customer business Always check the official Saks website for the most current policy updates

6 Will there be big sales because of this
You may see increased promotions as the company aims to generate cash and clear inventory but large going out of business liquidation sales are not a given with a Chapter 11 filing focused on staying open

7 What about my Saks credit card
The Saks credit card is issued by a separate bank The bankruptcy filing of the retailer should not directly impact your card account which is governed by your agreement with the bank

Advanced BusinessOriented Questions

8 Why did Saks Global file for bankruptcy
The company cited a combination of high debt load from its previous acquisition