According to Forbes, Saks Global is preparing for bankruptcy after missing a $100 million debt payment, leading to the immediate resignation of CEO Marc Metrick. He’s being replaced by executive chairman Richard Baker, whose investment firm NRDC Equity Partners orchestrated the $2.7 billion acquisition of Neiman Marcus Group in 2024. The company’s revenue fell over 13% year-over-year to $1.6 billion in its last quarter, with net losses ballooning to $288 million. Inventory has plunged to $1.9 billion from $2.1 billion just a quarter earlier, largely because vendors are withholding shipments over unpaid invoices. This follows the high-profile bankruptcy of its former parent, Hudson’s Bay Company, in June 2025, which shuttered all stores and laid off 8,300 employees.
Baker’s Bad Track Record
So, here’s the thing. Richard Baker calling himself a “real estate guy” in a 2023 interview isn’t just a casual aside—it’s the entire thesis for what’s happening. He’s not a luxury retail savior; he’s an asset manager who saw prime real estate with some fancy storefronts attached. His track record reads like a graveyard of retail brands: Lord & Taylor, Galeria Kaufhof, Gilt Groupe, Fortunoff. The list goes on. The comparison to Eddie Lampert, who famously hollowed out Sears, isn’t just apt; it’s terrifyingly precise. Baker’s strategy seems to be about financial engineering and property values, not about cultivating the customer experience that modern luxury shoppers demand. And now he’s in the CEO seat promising a “strong and stable future.” The sheer audacity is almost impressive.
The Real Estate Crutch
Now, the one card Saks Global has left to play is that $7 billion portfolio of prime retail real estate. With occupancy rates nationally over 90%, as reported by the ICSC, selling some properties could theoretically appease creditors for a minute. But it’s a short-term fix for a terminal disease. We already saw a potential $1 billion sale of JCPenney stores fall apart because the trust holding them said the price was too low. That’s the problem with trying to liquidate assets under duress—you rarely get full value. And even if they do sell, what then? You can’t run a luxury retail business without inventory, which you can’t get without paying vendors, which you can’t do without cash flow. It’s a death spiral. The real estate might be the last valuable thing left, but selling it just turns Saks into a slowly evaporating puddle.
Why Customers Are Leaving
Look, the financials are a symptom, not the cause. The core disease is a complete erosion of trust and experience. When vendors aren’t getting paid, the shelves get bare. When shelves are bare, the affluent, discerning luxury shopper—who, as analyst Liza Amlani told Retail Dive, is “loyal to experience, not necessarily channel”—just goes elsewhere. They’re already flocking to Bloomingdale’s and Nordstrom. Then you layer on a massive personal shopper fraud scandal in Boston, and the brand’s aura of exclusivity and security is shattered. These customers read the Wall Street Journal. They know about the missed payment and the bankruptcy rumors. Why would they risk buying a $5,000 handbag from a company that might not be there to honor a return or warranty in six months?
A Bleak Future With No Leadership
Marc Metrick’s exit, as noted in the company’s press release, is the final alarm bell. He was a 30-year Saks veteran who came up through the executive training program. His departure, along with a whole cadre of senior leaders like global president Emily Eisner and COO Rob Brooks, tells you everything. The people who knew how to run the actual retail business are jumping ship. They either saw the inevitable or couldn’t stomach Baker’s plans. So what’s left? A company burning $288 million a quarter, unable to sell a stake in crown jewel Bergdorf Goodman, and led by a “real estate guy” with a history of failures. The grand vision of a “technology-powered luxury retail company” from just last year is now a joke. This won’t end with a turnaround. It’ll end with asset sales, more layoffs, and the slow dimming of a once-great American luxury name.
