Luxury Retail Giant Faces Leadership Shake-Up Amid Financial Woes

Marc Metrick Steps Down Amid Debt Crisis

Saks Global is currently navigating a challenging period. The luxury retail conglomerate's CEO, Marc Metrick, has resigned from his position. This development coincides with the company's struggles to meet its debt obligations. Saks Global recently missed a loan payment and is contemplating filing for bankruptcy.

Richard Baker Takes the Helm

Richard Baker, the former executive chairman, has assumed the role of CEO. Baker is renowned for his pivotal role in the creation of Saks Global, which encompasses esteemed brands such as Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. Prior to his involvement with Saks, Baker had a career in real estate and business.

Financial Struggles Post-Merger

The company's financial woes began with the acquisition of Neiman Marcus Group for $2.7 billion in 2024. Since then, sales have underperformed. In October, the company reported a revenue decline of over 13% for the quarter ending in August, compared to the same period last year.

The Merger's Unfulfilled Promise

The merger was intended to establish a formidable luxury retail group, with goals of cost savings, enhanced brand influence, and improved customer experiences. However, the anticipated benefits have not materialized.

Neiman Marcus' Previous Bankruptcy

Neiman Marcus, which also owns Bergdorf Goodman, had previously filed for bankruptcy in 2020, at the onset of the pandemic. Marc Metrick had been at the helm of Saks since 2015. Upon the formation of the new group, Baker expressed his long-held aspiration to unite these luxury brands. He also assured that there were no plans to close stores or reduce services.