Saks and Neiman Marcus Owner to File for Bankruptcy
The owner of Saks and Neiman Marcus is gearing up to file for bankruptcy Wednesday and plans to offer a significant signing bonus to Neiman Marcus’ former CEO, who will oversee the restructuring of this luxury retail giant, according to sources.
Pentwater Capital Management and Bracebridge Capital have outrun debt trading behemoth Pimco to secure a $1.75 billion debtor-in-possession loan, which will help sustain Saks Global during its Chapter 11 process, insiders told sources.
Pimco had a stake in the company when Saks acquired Neiman Marcus and Bergdorf Goodman in a significant $2.6 billion transaction back in 2024.
Geoffroy van Raemdonck, who led Neiman Marcus for almost seven years before stepping down in 2024, has been chosen to guide the restructuring efforts. He was at the helm when Saks made its acquisition.
Van Raemdonck is bringing on two trusted allies: Darcy Pennick, former president of Bergdorf Goodman, and Lana Todorovic, who served as chief merchandising officer at Neiman Marcus during Van Raemdonck’s leadership. This move seems calculated, given their previous experience together.
Reportedly, Van Raemdonck is set to receive a signing bonus of $7 million, with Pennick and Todorovic splitting another $3 million for their involvement in this new phase, approved by Saks Global’s independent board members prior to the bankruptcy filing.
He will take over from Richard Baker, who stepped down as CEO of Saks Global. Baker had merged Saks with Neiman and Bergdorf to form the largest luxury retailer in 2024 but had only recently taken the CEO position after Mark Metric resigned due to financial challenges.
During his time at Neiman Marcus, Van Raemdonck navigated the company through five months of bankruptcy amid the pandemic. Some of his decisions resulted in substantial bonuses for executives but created discord among regular employees due to cuts in hiring and benefits, leading some to view him as an outsider.
Efforts to reach Van Raemdonck for comments were unsuccessful. Similarly, attempts to contact Pennick and Todorovic yielded no immediate responses.
Matthew Halbauer, CEO of Pentwater Capital and the driving force behind the loan deal, did not offer any comments on the situation. Meanwhile, Bainbridge, another involved party based in Boston, has not responded to inquiries either.
