CEO Richard Baker, whose appointment to that role was announced on Jan. 2, has been preparing to exit the company over the past few days, Bloomberg reported Tuesday (Jan. 13), citing unnamed sources.
Baker is making that move as Saks Global gets close to filing for Chapter 11 bankruptcy, according to the report.
Saks Global did not immediately reply to PYMNTS’ request for comment.
According to the Bloomberg report, Baker played a key role in the 2024 acquisition of Neiman Marcus Group by Saks that created Saks Global.
Saks Global faces mounting losses and substantial debt, per the report.
The company’s luxury retail operations include Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow.
Reuters reported Tuesday that Saks Global could file for bankruptcy “imminently” and that the company is close to finalizing $1.75 billion in financing with creditors that would enable it to repay vendors, restock inventory and keep stores open during a reorganization.
The financing would include a debtor-in-possession loan of $1 billion from an investor group, an asset-backed loan of $250 million from the company’s banks, and another $500 million of financing from the investor group when the company exits bankruptcy protection, according to the report.
The potential participants are still negotiating the lending package, the terms could change, and the plan would require approval from a bankruptcy judge, the report said.
It was reported Friday (Jan. 9) that Saks Global was weighing two competing offers of bankruptcy financing packages as it prepares to file for bankruptcy.
Another report posted a day earlier said that the company was trying to line up bankruptcy financing but that investors were showing little interest.
It was reported Dec. 22 that Saks Global was considering bankruptcy while facing an over $100 million debt payments. The firm was also mulling other ways to boost liquidity, such as raising emergency funding or selling off assets.
Saks Global raised billions of dollars in 2024 to fund its turnaround effort, which included the purchase of Neiman Marcus Group, but the deal placed the struggling retailer deeper in debt.