Saks Global CEO Marc Metrick has stepped down as the company faces possible bankruptcy.
The company has named Executive Chair Richard Baker as Metrick’s successor.
This follows a merger with Neiman Marcus, which is preparing for bankruptcy after missing an interest payment of over US$100 million on debt from the merger, according to The Wall Street Journal.
Saks Global was acquired by rival Neiman Marcus, bringing together the department store chains to control costs amid uneven demand and better compete with rivals such as Nordstrom, Macy’s and Bloomingdale’s.
It also follows Hilldun Corp. saying it would no longer back shipments to Saks Global in December. The firm represents 140 brands that sell to Saks Global and supplies it with at least US$500 million worth of product annually.
Products at Saks Fifth Avenue range from about $60 for cotton rib tank dresses to nearly $20,000 for designer dresses, with handbags typically priced between $100 and $38,280, according to information on its website.
The company told Business Insider it was exploring new avenues to mitigate its debt issues while still offering an assortment of products.
"Together with our key financial stakeholders, we are exploring all potential paths to secure a strong and stable future," a spokesperson for Saks Global told Business Insider.
"Importantly, opportunities in the luxury market remain strong, and Saks Global continues to play a distinct and enduring role within it."
