aks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks Off 5th, Last Call, and Horchow will remain open and operating for the time being. However, the company noted it is “evaluating its operational footprint to invest resources where it has the greatest long-term potential”. Considering all the hype Saks Global attracted two years ago about becoming the next ultimate department store behemoth, it’s almost a shock to see how far the retail giant has fallen. “Bankruptcy was always a likely destination for Saks Global,” Neil Saunders, analyst and managing director at GlobalData, told Inside Retail. “Not because the luxury market is soft, because department stores are challenged, or because consumer sentiment is poor. It was simply because management set the business up for failure. “Loading a company with an unsustainable debt pile is never wise, but it is catastrophic when that leverage undermines the day-to-day fundamentals of the business.” Saks Global’s lack of cash meant suppliers went unpaid, creating inventory gaps that drove customers away and caused revenue and cash generation to plummet, ultimately leading to the company’s current situation. “So much for the vision of creating a luxury powerhouse. All the now-departed management team created was a financial time bomb that has exploded and left a trail of casualties in its wake,” Saunders concluded. Saks Global’s swift leadership switch-ups In the wake of Richard Baker’s rather abrupt departure, retail veteran Geoffroy van Raemdonck stepped in as Saks Global’s new CEO as of January 14. In a statement, van Raemdonck commented, “This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.” Before joining the luxury conglomerate, van Raemdonck was the CEO of Neiman Marcus Group, which was acquired by Saks Global in 2024. Additionally, van Raemdonck has held several leadership positions with luxury fashion labels, including Ralph Lauren and Louis Vuitton. Following his appointment, van Raemdonck expanded Saks Global’s senior leadership team by appointing industry veteran Darcy Penick as the company’s president and chief commercial officer, and Lana Todorovich as the chief of global brand partnerships. “In close partnership with these newly appointed leaders and our colleagues across the organization, we will navigate this process together with a continued focus on serving our customers and luxury brands. I look forward to serving as CEO and continuing to transform the company so that Saks Global continues to play a central role in shaping the future of luxury retail,” said van Raemdonck. While there are already some grumbles that van Raemdonck’s appointment is too little, too late to save Saks Global, other retail executives hold a more positive opinion of the new CEO. Brianna Lipovsky, the founder of Maiden Ventures, a brand, product development, and advisory consultancy, commented, “It has been an incredibly challenging season for the luxury retail community. As a vendor, I know firsthand that the road to today’s announcement has been anything but easy. However, seeing Geoffroy van Raemdonck step in as CEO of Saks Global finally gives me genuine hope for a path forward.” “Having seen Geoffroy successfully lead complex restructurings before, I’m confident in his ability to stabilize the business and rebuild the vital trust between the retailer and its brand partners. With fresh capital now in place, I am eager to see the focus return to growth and operational excellence. “It’s time to get back to business and build a sustainable future for luxury,” Lipovsky concluded. Will Authentic Luxury Group Be the Phoenix to Rise from Saks Global’s Ashes? While Saks Global has been slowly descending into its current financial weakness, other plans have been brewing in the shadows: the development of Authentic Luxury Group (ALG). ALG, which was first announced in October 2024, is a partnership formed under Baker’s stewardship between Saks Global and Authentic Brands Group CEO Jamie Salter. As Christine Russo, the principal of Retail Creative and Consulting Agency (RCCA), explained to Inside Retail, “ALG is positioned as a broad platform intended to explore luxury brand expansion even beyond conventional retail, including hospitality, real estate, digital, and experiential categories.” In addition to housing Authentic Brands Group-owned brands such as Hervé Léger and Vince, ALG will serve as an incubator for brand growth through new strategic licensing agreements and distribution channels across sectors, including fashion, retail, digital, hospitality, real estate, art, and travel. Additionally, Salter and former Saks Global CEO Baker promised that ALG will extend its brands beyond fashion and into lifestyle categories, similar to the Barneys New York Residences, which opened in Tulum, Mexico, earlier this year. “Building on our complementary strengths, ALG will further cultivate our brands by creating a multifaceted environment that reaches a broader audience through a wide range of offerings and experiences,” Salter said. “Our shared commitment to excellence and strategic vision positions us at the forefront of modern luxury.” “If the model was restructured so the business didn’t have to purchase the product, pay the staff, or pay rent and simply brought customers in because of the storied names of Saks, Neiman Marcus, and Bergdorf Goodman, that could be a huge win,” Russo theorized. While it’s yet to be seen how well Authentic Luxury Group’s plans will fare, especially in light of Saks Global’s recent announcement, the overall situation marks yet another nail in the coffin of the traditional American luxury department store model. A Potential New Era for Foreign Luxury Players in the US Market As we wait to see how Saks Global and other American department store chains, such as Macy’s, ride out the year, international players like the French department store chain Printemps and the German online fashion retailer Mytheresa have never had better positioning to infiltrate the US market. Printemps has already made its bid to enter the American retail market with the opening of its first US location in New York City in March 2025. Despite earlier doubts about a French player’s chances of success in New York City’s aggressively difficult retail market, Printemps appears to be holding its ground. The French legacy department store has reported positive sales figures in its first few months on the market and has drawn notable crowds over the holiday season, largely thanks to curated events such as its in-store choreographed ice-skating performances and its festive Moët & Chandon champagne holiday bar pop-up. For the time being, if Saks Global hopes to come back to life—let alone compete with other luxury retail players—van Raemdonck needs to be agile about settling the company’s debts, especially to aggrieved vendors, before taking any bold, costly steps. Further reading: Can new CEO Richard Baker revive Saks Global?