On Tuesday, Saks Global, the company who owns department store Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection. The news comes less than a year after a deal brought together Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus within the same company.

Saks Global filed for Chapter 11 bankruptcy

The company announced it filed for bankruptcy protection but noted that its stores would remain open for now. Saks Global finalized a $1.75 billion financing package and appointed a new CEO, it announced on Wednesday, according to Reuters. Geoffroy van Raemdonck, the former CEO of Neiman Marcus, will replace Richard Baker.

NBC News reported that the company also appointed Darcy Penick and Lana Todorovich, two former executives at Neiman Marcus who will serve as chief commercial officer and chief of global brand partnerships at Saks Global, , respectively.

“This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future,” van Raemdonck said in a statement, according to CNN. “In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands. I look forward to serving as CEO and continuing to transform the Company so that Saks Global continues to play a central role in shaping the future of luxury retail.”

The company filing for bankruptcy protection means it will be able to negotiate a debt restructuring with creditors or sell itself to a new owner; it may be obliged to shutter if it fails to do so, according to Reuters.

Saks Global has struggled in recent years

The company faced challenges in recent years as a result of the COVID-19 pandemic and consumers habits shifting from department stores to online stores and individual brands. Macy’s closed hundreds of stores in 2024 while Lord & Taylor shut down in 2020, CNN reported.

In 2024, Saks Global acquired Neiman Marcus for $2.65 billion in a deal that led to heavy debt.

“The truth is that Saks Global put itself in a financially precarious position that undermined the day-to-day operations of the business,” retail analyst and managing director of GlobalData Neil Saunders said, according to CNN. “A lack of cash meant suppliers went unpaid, this created inventory gaps which then drove customers away and caused revenue and cash generation to plummet. This classic vicious spiral put the business in an unsustainable position.”

Per Reuters, Saks Fifth Avenue store was opened by Andrew Saks in 1867 and became known for housing luxury brands.