Saks CEO Steps Down as Luxury Retailer is Battered by Debt

The top executive of the private company that owns Saks Fifth Avenue and Neiman Marcus is stepping down as it struggles with debt taken on to buy a rival nearly two years ago, the Associated Press (AP) reported.

Saks Global having missed an interest payment of over $100 million related to the debt from its 2024 merger with Neiman Marcus, was reportedly pivotal in the recent shakeup. (Photo: zyphbear Flickr) 

Saks Global Enterprises said recently that CEO Marc Metrick’s departure is effective immediately and that he will be replaced by Executive Chairman Richard Baker, who will continue to serve in that role.

In addition to debt from Saks’ $2.65 billion acquisition of Neiman Marcus in the summer of 2024, the company is facing increasing competition in a fragmenting luxury goods sector.

Hudson’s Bay Co., the Canadian owner of Saks Fifth Avenue, split off the retailer’s e-commerce business, Saks.com, in 2021.

After acquiring Neiman Marcus three years later, Saks Fifth Avenue changed its name to Saks Global.

New York City-based Saks Global completed a $600 million notes offering in August in an effort to bolster liquidity following the Neiman Marcus acquisition.

The company is seeking to reduce its heavy debt load as global luxury goods sales are expected to contract for a second straight year in 2026.

Wealthier consumers have pushed back against price hikes on products that have failed to generate excitement, compounded by anxiety about the global economy, according to a Bain & Co. study released in November.