Saks Fifth Avenue’s parent company, Saks Global, filed for bankruptcy protection after running out of cash and failing to secure financing. Former Neiman Marcus CEO Geoffroy van Raemdonck will replace Richard Baker as CEO. The company secured a $1.75 billion financing commitment to improve its balance sheet.

Saks struggled to secure $1 billion in financing, leading to bankruptcy. The company missed an interest payment, making bankruptcy inevitable. Bankruptcy proceedings could result in a strategic buyer acquiring the company, liquidation, or closure of stores. The future of Saks Global remains uncertain as bankruptcy proceedings unfold.

Saks faced financial challenges after acquiring Neiman Marcus in 2024. The deal was expected to improve the company’s financial position but led to cash flow issues. Saks failed to pay vendors, causing a decline in assortment and sales. Despite securing new financing and selling assets, the company still filed for bankruptcy.

Read more at CNBC: Saks Global files for bankruptcy protection