New York — Saks Global, the parent company of luxury retailers Saks Fifth Avenue and Neiman Marcus, appointed a new chief executive on Friday as the company reportedly prepares to file for bankruptcy protection following a missed debt payment. Richard Baker, the company's Executive Chairman and a veteran real estate executive, will assume the additional role of CEO, replacing longtime Saks leader Marc Metrick, who is departing "to pursue new opportunities."

The leadership shake-up arrives at a critical juncture. According to a Wall Street Journal report, the privately-held retailer is on the verge of bankruptcy due to a missed payment related to its $2.65 billion acquisition of Neiman Marcus in 2024. That deal, which created Saks Global, was intended to forge a powerhouse better equipped to compete with rivals like Nordstrom.

A Strategic Pivot Amid Financial Distress

Baker's appointment represents a clear strategic pivot, placing a real estate-focused leader at the helm during a liquidity crisis. In a statement, Baker said he would work "to secure a strong and stable future for our company," leveraging industry relationships and assets. The company has already taken steps to raise cash, including selling Neiman Marcus' Beverly Hills flagship and restructuring debt in August 2025.

The move underscores the severe challenges facing the traditional luxury department store model. The merger, meant to create synergies and scale, instead burdened the company with significant debt just as shifting consumer habits and economic pressures intensified the high-stakes race for high-end shoppers.

Navigating a Tumultuous Future in Luxury Retail

The potential bankruptcy filing marks a dramatic turn for a retail empire that sought to dominate the American luxury landscape. It highlights the immense difficulty of integrating two legacy brands in a rapidly evolving competitive ecosystem, where online players and direct-to-consumer brands have rewritten the rules of engagement.

Baker's background in real estate suggests a focus on maximizing the value of the company's substantial physical assets may be a key part of the coming strategic maneuver. However, navigating a Chapter 11 process while maintaining the prestigious brand image of Saks and Neiman Marcus will be an unprecedented test for the new leadership, with the future of the combined entity hanging in the balance.