Saks Global Names Richard Baker CEO Amid Bankruptcy Reports

Saks Global announced Friday that CEO Marc Metrick has stepped down, and named Executive Chairman Richard Baker as his successor. The leadership change occurs as reports indicate the luxury retail group is preparing for a potential bankruptcy filing following a missed debt payment.

Baker, the owner of real estate firm NRDC, will assume the CEO role while maintaining his position as executive chairman. He has an extensive background in retail and property, having previously chaired Retail Opportunity Investments Corp and served as president of the Saks Fifth Avenue Foundation.

Metrick exits after nearly 30 years with the organization. He had led the company since its formation in July 2024, overseeing the integration of Saks Fifth Avenue and Neiman Marcus and directing the firm’s digital strategy. The company stated Metrick is leaving to pursue "new opportunities."

Liquidity Challenges and Debt Obligations

The management transition follows reports that Saks Global failed to make an interest payment exceeding US$100 million due on Tuesday. The debt is tied to the US$2.65 billion acquisition of Neiman Marcus completed in late 2024. According to sources familiar with the matter, the company is in negotiations with creditors to secure financing for a Chapter 11 bankruptcy process, which could be filed in the coming weeks.

The retailer has struggled to sustain demand amid rising inflation and a weakening labor market, which have curtailed discretionary spending on luxury goods. To manage its US$4.7 billion debt load, the company has explored several liquidity measures over the past year, including:

• The sale of a Beverly Hills property and other real estate assets to raise cash.

• Efforts to sell a minority stake in the luxury retailer Bergdorf Goodman.

• The completion of a US$600 million financing deal in August 2025 aimed at providing a cash infusion.

Strategic Integration and Market Competition

Saks Global was established by Hudson's Bay Company to combine the operations of Saks Fifth Avenue and Neiman Marcus. The merger aimed to create a luxury retail heavyweight capable of competing with rivals such as Nordstrom, Bloomingdale's, and Macy's. The deal received backing from major investors, including Amazon, Authentic Brands Group, and Salesforce.

Despite the integration, the company has faced persistent issues with vendor payments. Reports indicate that "Days Beyond Terms" data shows Saks Global has consistently paid suppliers late, leading some brands to withhold shipments. This inventory strain, combined with a 13% year-on-year revenue decline reported for the quarter ended in August, has intensified pressure on the firm's financial stability.

Back in 2022, Grupo Sanborns did not renew Saks’s license to operate in Mexico citing a lack of profitability four years before the original 10-year plan signed in 2006. 

Mexico has a strong luxury market, which ranks among the top in Latin America, as reports MBN. The market reached a market value of US$14 billion (MX$238 billion) in 2022 and grew by 12% in 2023, according to LuxuryLab Global. This growth is driven by a rise in e-commerce and an increasing number of North American residents. Success in this market relies heavily on exclusivity, prestige, and product quality, but digital marketing, particularly on mobile platforms, also plays a role. Mobile channels accounted for 71% of luxury purchases, with set-top boxes contributing 14.8%, desktops 13%, tablets 4%, and apps 3%.