Saks Global has announced the departure of its chief executive, Marc Metrick, as mounting financial pressure fuels reports that the luxury retailer is preparing for bankruptcy protection.
The company said Mr Metrick stepped down on Friday, with executive chair Richard Baker taking over the role of chief executive with immediate effect. The leadership change follows growing concerns over Saks Global’s debt position, after the group missed an interest payment of more than US$100m linked to financing from its merger with Neiman Marcus.
Reports earlier this week indicated that the retailer, which sits at the centre of the US luxury department store market, has been weighing bankruptcy options as it struggles to manage its debt obligations amid a slowdown in high-end consumer spending.
Saks Global has faced a challenging retail environment marked by rising borrowing costs, cautious consumers and intensified competition from online luxury platforms. The missed payment has raised questions about the group’s ability to refinance its debt and stabilise its operations without court protection.
Richard Baker, a long-time figure in the company’s leadership and its controlling shareholder, is expected to oversee any restructuring efforts as the business seeks to reassure suppliers, landlords and investors.
While the company has not formally confirmed plans to file for bankruptcy, the sudden change in leadership has reinforced expectations that a major financial restructuring may be imminent.
Saks Global faces key interest payment amid mounting retail sector pressure
