The much-touted corporate marriage between Saks and Neiman Marcus was supposed to show how two iconic names in luxury retail were stronger together. Instead, in little more than a year, the newly-combined company filed for bankruptcy. \u201cThis Saks-Neiman merger has been a disaster,\u201d said David Swartz, senior equity analyst, Morningstar Inc.<\/p>\n
The company has faced challenges with shifting tastes among consumers, mounting debt and ongoing challenges in the retail industry. All told, its bankruptcy, filed late Tuesday in Texas, showed estimated liabilities of between $1 billion and $10 billion.<\/p>\n
The company\u2019s future will be under the leadership of a familiar name for longtime followers of Neiman Marcus: Geoffroy van Raemdonck, the former CEO of the Dallas-born retailer. He took over the top spot at Saks Global after some tumultuous weeks that saw changes in the chief executive\u2019s office.<\/p>\n
Now, van Raemdonck must grapple with the headaches of a chapter 11 bankruptcy, working with disappointed vendors and inspiring shoppers to visit the retailer\u2019s stores. The process could mean shuttering sites, more layoffs and potentially some pieces being sold off, observers say. There also are fresh questions about what will happen to the downtown Dallas Neiman Marcus store.<\/p>\n
\u201cFor the most part, it\u2019s probably going to be an exercise in financial engineering and downsizing,\u201d Swartz said, adding it will likely have store closures. It\u2019s \u201cnot a pleasant business to run at this point.\u201d<\/p>\n
Van Raemdonck took the top post at then Dallas-based Neiman Marcus in early 2018, after a post at Ralph Lauren and other luxury brands. Under his leadership, the company would go through a bankruptcy amid COVID-19 before eventually selling to Saks Global, a deal that closed in late 2024.<\/p>\n
At the time of the sale, van Raemdonck stepped down, along with other leaders, from the company. Within a matter of weeks, Saks Global announced the planned closing of the downtown Dallas Neiman Marcus, which was set to shutter at the end of March 2025 amid a landlord dispute.<\/p>\n
City and business officials jumped in to help preserve the store \u2014 and it was given a lifeline that was later extended as its future is under discussion. At the time of the deal to keep it from closing last year, potential ideas included a fashion and event center.<\/p>\n
\u201cWe are monitoring developments, and we will continue our discussions with the Saks Global management team to ensure their vision for the downtown Dallas Neiman Marcus store becomes a reality,\u201d Dallas city manager Kimberly Bizor Tolbert said in a statement.<\/p>\n
In the announcement about the bankruptcy, Saks Global said it\u2019s \u201cevaluating its operational footprint to invest resources where it has the greatest long-term potential.\u201d This approach \u201creflects an effort to focus the business in areas where the company\u2019s luxury retail brands are best positioned for sustainable growth,\u201d it said.<\/p>\n
The new CEO \u201cknows Dallas, the customer base and the city,\u201d said Linda McMahon, CEO, Dallas Economic Development Corp. \u201cI think that is positive for the future of\u201d the flagship Neiman Marcus, she added.<\/p>\n
The company could close around 10 to 15 stores, including several in areas of the country where there is market overlap between Saks Fifth Avenue and Neiman Marcus, according to strategic retail adviser Steve Dennis.<\/p>\n
The downtown Dallas site could be seen as a key asset for the Texas market. \u201cYou might persuade yourself that you want to have some sort of position that respects the heritage,\u201d said Dennis, who was a Neiman Marcus executive more than 15 years ago.<\/p>\n
Still, the site isn\u2019t crucial for revenue. Personal shoppers, or a trip to the nearby NorthPark Center store, can take care of customers, he said.<\/p>\n
There are real issues to address more broadly, and that includes payments to the brands that supply those high-fashion items. Between June and September 2025, the company\u2019s days beyond terms \u2014 or how late they paid their bills past payment terms \u2014 increased by 37%, according to CreditSafe\u2019s Ragini Bhalla, head of brand.<\/p>\n
In addition, a growing number of Saks\u2019 bills fell into the delinquent category at 91-plus days late. Difficulties in getting paid are a strain on a crucial relationship, Swartz said.<\/p>\n
\u201cIf your shelves are empty, the customers will stop coming,\u201d Swartz said. \u201cThey have other places to go.\u201d<\/p>\n
Traffic at the stores has suffered. The number of visitors to Saks Fifth Avenue declined every month in 2025 (on a year-over-year basis) except for a gain of 0.5% in October, according to Placer.ai. Rival Bloomingdale\u2019s showed year-over-year increases in ten of the 12 months last year.<\/p>\n
Neiman Marcus was flat one month with gains in January and May, according to Placer.ai. However, Neiman Marcus showed a drop of about 12% at the end of the year while Saks Fifth Avenue showed a drop of 4%.<\/p>\n
Shoppers have choices \u2014 and it\u2019s not just online that provides more options. For today\u2019s luxury buyer, brands such as Prada, Dior and Hermes have their own shops with plenty of customer services in places like Dallas and many other cities.<\/p>\n
\u201cThey don\u2019t need to go to a Neiman Marcus to buy a Louis Vuitton handbag,\u201d Swartz said. \u201dThey\u2019ll just go directly to the Louis Vuitton store.\u201d<\/p>\n
The bankruptcy itself isn\u2019t helping either, as the headlines don\u2019t bolster the reputation of the department store names, Swartz said. Van Raemdonck is getting help with roughly $1.75 billion of committed capital as the company enters bankruptcy. He\u2019s also welcoming more executive backup.<\/p>\n
Darcy Penick was named president, chief commercial officer, Saks Global, overseeing stores, marketing, buying, digital, analytics and customer care. Lana Todorovich took the title of chief of global brand partnerships, Saks Global, leading the luxury retailer\u2019s efforts with brand partners at an enterprise level.<\/p>\n
What Saks Global looks like as a company could evolve with the bankruptcy, as some of the pieces of the company may be separated, said Daniel Gielchinsky, a lawyer and partner of DGIM Law in Florida, which does bankruptcy and restructuring work.<\/p>\n
Bergdorf Goodman, the big retail store in New York that came with the Neiman Marcus Group acquisition, could be sold off, Swartz said.<\/p>\n
Whatever the case, stores and e-commerce experiences across Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow are open for customers, the company said.<\/p>\n
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