Saks Global exits Chapter 11 with 49 stores under new name Exemplar Luxury Group

Federal bankruptcy judge Alfredo Perez approved the exit plan at a hearing in Houston, Reuters reported, clearing the way for the owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman to leave bankruptcy after nearly five months. The plan eliminated most of the pre-bankruptcy debt and wiped out existing equity, with control passing to senior lenders.

The company said its debt had been reduced by nearly 75% from the $3.4 billion it listed at filing, and that it had $500 million in extra financing. Senior lenders provided $1 billion during the case and committed a further $500 million on formal exit. Saks filed for bankruptcy on 13 January.

A smaller luxury store base

Exemplar now runs 15 Saks Fifth Avenue stores, 33 Neiman Marcus stores and the Bergdorf Goodman store on Fifth Avenue, for 49 luxury stores. Before the filing it had 33 Saks Fifth Avenue stores, 36 Neiman Marcus locations and one Bergdorf Goodman store, or 70 luxury stores, according to the company.

The Saks Fifth Avenue chain fell from 33 stores at filing to 15, a reduction of more than half. In March it closed 12 Saks Fifth Avenue stores and three Neiman Marcus locations, Reuters reported.

Saks closed 62 off-price stores, including 57 Saks Off 5th and all five Neiman Marcus Last Call locations, and now lists 12 outlets, the company said. It had roughly 70 Saks Off 5th discount stores before the filing.

Lenders take control

Ownership passed to the senior lenders. The seven-person board includes two representatives each from Pentwater Capital Management and Bracebridge Capital, the firms that partnered with Saks through the restructuring. Chief executive Geoffroy van Raemdonck will serve on the board, alongside Dave Kimbell, the former Ulta Beauty chief executive, and Philippe Schaus, most recently global CEO of Moët Hennessy.

Van Raemdonck said the new name reflects "the shared ideals that anchor each of our banners and our commitment to setting the standard of excellence for luxury retail across all three." He said it signals a focus on an exemplary shopping experience, with better personalized service. The company employs more than 1,500 sales associates who have each sold more than $1 million of goods, he said.

What led to bankruptcy

Saks attributed part of its liquidity strain to the Neiman Marcus integration, which it said made inventory replenishment difficult and damaged relations with some key suppliers. The $2.7 billion merger with Neiman Marcus in 2024, orchestrated by the company's former CEO, was designed to create a luxury powerhouse but burdened Saks with debt when global luxury sales were slowing.

The company used the case to renegotiate relationships with strategic suppliers including Chanel, LVMH and Kering. It listed more than $337 million owed to critical suppliers such as Chanel and Kering, the owner of Gucci. A $1 billion bankruptcy loan was approved in February, with $600 million of it earmarked to pay vendors.

The restructuring also ended Saks's partnership with Amazon to sell products on its e-commerce platform, after luxury brands objected to distribution through a mass-market site. Van Raemdonck told The Associated Press that the three banners now have "the right funding, the right equity and a bright future ahead of them."