Jan 2 (Reuters) - Saks Global said on Friday CEO Marc Metrick has stepped down and named Executive Chairman Richard Baker as his successor, amid reports that the luxury retailer is preparing for bankruptcy.
The change at the top comes days after the Wall Street Journal reported that the Neiman Marcus parent company is preparing for bankruptcy after missing an interest payment exceeding $100 million on debt from its Neiman merger.
Saks Global was created after Saks Fifth Avenue parent Hudson's Bay Company
acquired rival Neiman Marcus, bringing together the two upmarket department store chains to control costs amid uneven demand and better compete with rivals such as Nordstrom and Macy's Bloomingdale's.
Metrick spent nearly 30 years with Saks, heading the luxury portfolio including Saks Fifth Avenue and Neiman Marcus. He led Saks Global since its formation in July 2024 and worked on shaping the firm's digital transformation and strategy.
"The Saks and Neiman Marcus merger has been a disaster," said David Swartz, department store analyst at Morningstar, adding that luxury shoppers are shifting to Bloomingdale's, Nordstrom and brand-owned stores.
"The whole luxury multibrand space has been struggling for years."
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.
Incoming CEO Baker is the owner of real estate firm NRDC and has a long track record in retail and property. He previously chaired Retail Opportunity Investments Corp and served as the president of Saks Fifth Avenue Foundation, founded in 2017.
The company said Metrick stepped down to pursue "new opportunities" and has not provided any further details.
The company was looking to sell a minority stake in luxury retailer Bergdorf Goodman to help cut debt, Reuters reported in September.
(Reporting by Sanskriti Shekhar, Juveria Tabassum and Anuja Bharat Mistry in Bengaluru, Nicholas P. Brown in New York; Editing by Shailesh Kuber and Shreya Biswas)
