Saks Global, parent company of Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection following struggles with debt from its 2024 acquisition of Neiman Marcus.

CEO Richard Baker stepped down as part of the filing, and former Neiman Marcus chief Geoffroy van Raemdonck will lead the company through the bankruptcy process.

Changing consumer habits, a shift toward direct-to-consumer luxury purchases, and economic uncertainty contributed to declining sales and strained vendor relationships.

The company has secured $1 billion in debtor-in-possession financing, with an additional $500 million pledged by bondholders upon emergence from bankruptcy, CNN has reported.

Saks Global aims to use the restructuring to strengthen its foundation and continue its role in the luxury retail market.