Saks, Neiman Marcus look for path forward with bankruptcy, after ‘disaster’ merger
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.
“This Saks-Neiman merger has been a disaster,” said David Swartz, senior equity analyst, Morningstar Inc.
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.
The company’s 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’s office.
Now, van Raemdonck must grapple with the headaches of a chapter 11 bankruptcy, working with disappointed vendors and inspiring shoppers to visit the retailer’s 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.
“For the most part, it’s probably going to be an exercise in financial engineering and downsizing,” Swartz said, adding it will likely have store closures. It’s “not a pleasant business to run at this point.”
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.
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.
Eyes on downtown
City and business officials jumped in to help preserve the store — 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.
“We 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,” Dallas city manager Kimberly Bizor Tolbert said in a statement.
In the announcement about the bankruptcy, Saks Global said it’s “evaluating its operational footprint to invest resources where it has the greatest long-term potential.”
A message seeking comment from Saks Global on the downtown site wasn’t immediately returned.
The new CEO “knows Dallas, the customer base and the city,” said Linda McMahon, CEO, Dallas Economic Development Corp.
“I think that is positive for the future of” the flagship Neiman Marcus, she added.
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.
The downtown Dallas site could be seen as a key asset for the Texas market.
“You might persuade yourself that you want to have some sort of position that respects the heritage,” said Dennis, who was a Neiman Marcus executive more than 15 years ago.
Still, the site isn’t crucial for revenue. Personal shoppers, or a trip to the nearby NorthPark Center store, can take care of customers, he said.
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’s days beyond terms — or how late they paid their bills past payment terms — increased by 37%, according to CreditSafe’s Ragini Bhalla, head of brand.
In addition, a growing number of Saks’ bills fell into the delinquent category at 91-plus days late.
Difficulties in getting paid are a strain on a crucial relationship, Swartz said.
“If your shelves are empty, the customers will stop coming,” Swartz said. “They have other places to go.”
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’s showed year-over-year increases in ten of the 12 months last year.
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%.
Shoppers have choices — and it’s not just online that provides more options. For today’s 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.
“They don’t need to go to a Neiman Marcus to buy a Louis Vuitton handbag,” Swartz said. ”They’ll just go directly to the Louis Vuitton store.”
The bankruptcy itself isn’t helping either, as the headlines don’t 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’s also welcoming more executive backup.
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’s efforts with brand partners at an enterprise level.
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.
Bergdorf Goodman, the big retail store in New York that came with the Neiman Marcus Group acquisition, could be sold off, Swartz said.
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.
Van Raemdonck wasn’t a surprising pick, Dennis said, with operating experience that made him a good option.
He suspects the CEO will be able to make a lot of progress on vendors “fairly quickly and have at least a reasonable amount of product in the stores for the spring season.”
The company can get on stronger footing with the bankruptcy process, but that doesn’t mean the long-term story will be one of envy, amid the challenges in its industry.
“Can it be a growth business?” he said. “That, I think, is a very hard thing to work out.”