Team Play: Who's Doing What at Saks Global?
The Race Against Time at Saks Global
The once-grand luxury retailer Saks Global is in a race against time, with its future hanging in the balance. After filing for bankruptcy, the company is now focused on getting back on its feet, with a new management team at the helm. But the question remains: can they turn things around and restore the brand's former glory?
The senior management team has been appointed, and they are working tirelessly to communicate with vendors and encourage them to resume shipping. However, the road to recovery is not without its challenges. Some vendors are still hesitant to resume business, citing concerns about getting paid and keeping promises. Transparency and timely payments are crucial to getting the vendor community back on board.
Saks Global is prioritizing working with brands to resume inventory flow and execute purchase orders for spring. They have been actively engaging with a significant number of brands, with more to come, reaffirming their continued operations. Many top houses and emerging brands have indicated that they are resuming shipping and have released over $100 million in merchandise receipts under post-petition terms in the first five days since the filing.
So far, the bankruptcy court has given Saks Global access to about $500 million out of the total of $1.75 billion in financing. This liquidity will support operations and transformation initiatives across the portfolio.
Saks Global has also indicated that post-petition invoices for merchandise receipts will be paid pursuant to current terms, which are set at 90 days from receipt of goods. However, some vendors have been getting preferential treatment. It's expected that Saks Global will draw up a new schedule for paying vendors, which must be approved by the bankruptcy court judge. Thirty to 60 days payment terms are the industry standard.
As WWD reported, "critical" vendors are being determined. They will receive DIP numbers setting them up for prioritized payments, as part of the pool of "go-forward" vendors. DIP numbers enable post-petition shippers to get paid on a new schedule to be determined by the court. With these DIP numbers, merchandise to Saks, Neiman's and Bergdorf Goodman could arrive relatively quickly, since many vendors held back shipments to Saks Global last year as the luxury retailer failed to meet commitments and the business was hemorrhaging.
Other Saks Global vendors looking to get some money from unpaid invoices might recover a small percent of what's owed - if anything at all.
"The DIP loan contemplated two tranches for critical vendors," said one legal source. "Saks Global has $320 million to play with to make deals with its critical vendors. $120 million has already hit the Saks account. Another $180 million is on its way." The source said the DIP money will be used to both pay critical vendors from past shipments, and pay for new shipments.
Now it's up to the new team at Saks Global to reassure vendors that they'll get paid and that Saks Global, operator of Neiman Marcus, Saks Fifth Avenue, Bergdorf Goodman and Saks Off 5th, has a viable path forward.
Leading the turnaround effort is Geoffroy van Raemdonck, the newly appointed chief executive officer of Saks Global. He has eight senior officials reporting directly to him and is developing a restructuring plan that would involve store closings and reverse negative sales trends while driving the company's ongoing transformation, further integrating the Saks Fifth Avenue and Neiman Marcus operations. He has also been meeting with vendors.
The eight executives reporting directly to van Raemdonck are:
- Darcy Penick, president and chief commercial officer, Saks Global
- Lana Todorovich, chief global brand partnerships officer, Saks Global
- Tracy Margolies, president, Bergdorf Goodman
- Sarah Garber, chief people officer, Saks Global
- Mike Hite, chief technology officer, Saks Global
- Brandy Richardson, chief financial officer, Saks Global
- Genny Siller, senior vice president, general merchandise manager, Saks Off 5th
- Andrew Woodworth, chief legal officer, Saks Global
Penick is overseeing Saks Fifth Avenue and Neiman Marcus stores and e-commerce, including their operations and selling force, as well as marketing, analytics and customer care. Penick succeeded Emily Essner, who left Saks Global last October after just 10 months on the job. Penick previously served as president of Bergdorf Goodman and head of the Neiman Marcus Group product and technology.
Todorovich is responsible for shaping new partnership agreements with designers and brands, and strengthening existing partnerships, whether the brands are wholesale, operate concessions, drop-ship or are listed on the Saks online marketplace. Officials said Todorovich will be working with Penick, Margolies and Paolo Riva, the chief buying officer, thereby covering all Saks Global retail banners and selling channels.
"Todorovich serves as a key point of contact and strategic partner to the luxury retailer’s brand partners and is tasked with evaluating and rethinking how the luxury retailer works with them," the company said in a statement.
Todorovich is focusing on enterprise-wide business models but is not placing buys or negotiating return to vendors involving returning defective, damaged or unsold merchandise back to the supplier or manufacturer. Todorovich previously served as chief merchandising officer of Neiman Marcus, developing strategic brand partnerships, typically taking a "holistic" multicategory approach per designer, delivering curated fashion and lifestyle assortments, and new types of exclusive luxury experiences across stores, online and sales-assisted channels. She led such efforts, negotiating with brand partners, during NMG’s Chapter 11 restructuring in 2020. NMG came out of bankruptcy in September 2020, and was bought by Saks Global in December 2024 for $2.7 billion.
Riva is responsible for leading the buying team in shaping and transforming the Saks Fifth Avenue and Neiman Marcus product assortments. He reports to Penick, which is why there is some natural crossover in their responsibilities. Riva is focused on refining Saks’ and Neiman’s buying strategy, including assortment selection, category performance, sell-through and replenishment. He partners closely with the merchandising planning team, which determines how brands are distributed, to what stores and cities, and how much product from each brand should be shipped to different doors. While reporting to Penick, Riva will be working closely with Todorovich as well.
At Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, there is much overlap of brands and designer collections. Whether Saks Global intends to more sharply differentiate the three luxury retailers remains to be seen.
Bergdorf Goodman has a separate buying team. Bergdorf’s chief merchandising officer Yumi Shin left the store last year to join Nordstrom and is being sued by Saks Global for allegedly violating her noncompete agreement and stealing proprietary information. Shin has attempted to dismiss the lawsuit. The team is being led by Bergdorf’s president Tracy Margolies.
In another key role, Mark Weinsten serves as chief restructuring officer for Saks Global, helping guide the company through the Chapter 11 bankruptcy process.
Officials indicated that the senior management team is now set, though future changes are possible. "We are always evaluating our teams across the organization to ensure we have the right roles and talent to support the company. We have no additional announcements to share at this time."
Asked who will be attending the fashion shows in New York and abroad, a spokesperson said, "Saks Global will have representation during fashion month to attend shows and place buys." The company does not disclose in advance which personnel attend the shows. As reported, Roopal Patel, senior vice president of the fashion office for Saks and Neiman’s, has left the company. She was a front-row fixture at the shows. A successor has not been named. "We are evaluating opportunities for leadership of our fashion office for Saks and Neiman Marcus," the company indicated.
Vendors are wondering who at Saks Global should they communicate with regarding issues on getting paid for shipments, terms, retrieving merchandise or other concerns. "Senior leaders from across Saks Global are in close contact with Saks Global’s brand partners and vendors through the Chapter 11 process," Saks indicated to WWD.
It is believed that Saks Global is considering closing at least a total of 20 Saks Fifth Avenue and Neiman Marcus stores and about 50 Saks Off 5th stores. The company operates 33 Saks Fifth Avenue stores, 36 Neiman Marcus stores, two Bergdorf Goodman doors and 71 Saks Off 5th locations. "As shared upon filing, Saks Global is evaluating its operational footprint to ensure the company is well positioned to invest in areas with the greatest opportunities for sustainable, long-term growth for the company’s luxury retail brands and partners," the company indicated.
"While the work ahead presents challenges, it creates a clear opportunity to strengthen our foundation and position Saks Global to serve the luxury consumer and both established and emerging brands for many years to come," van Raemdonck said in a statement. "Ultimately, our success depends on the strength of our relationships with our brand partners and the trust we share. Our top priority is to strengthen the relationships our teams and I have developed over many years."
Penick and Todorovich also commented on the dynamic situation at Saks Global.
"We have important work ahead to reinvigorate our relationships with our partners, ensuring we continue to offer an expertly curated product assortment from the world’s most desired brands, combined with immersive experiences, exclusive access to iconic designers and the unparalleled customer service we are known," Penick said in her statement.
"This transformation presents an opportunity to work closely with our established and emerging brand partners to shape and execute this vision together," Todorovich said in her statement. "Collaboration is the foundation of our approach, enabling us to optimize and harmonize our reach with our partners’ direct-to-consumer strategies and introduce their brands to new audiences in meaningful ways."
