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Saks Global CEO Marc Metrick has stepped down after 30 years with the retailer, the company announced on Friday. Richard Baker is taking over the role, in addition to his current role as executive chairman, as Saks Global reportedly prepares a Chapter 11 bankruptcy filing.
“I look forward to continuing to work with our highly experienced management team, valued partners and other stakeholders to secure a strong and stable future for our company,” Baker said in a statement. “Across Saks Global, with our deep industry expertise, well-established relationships within the luxury sector, and talented employees, we will strengthen our position so that we can capitalize on the many opportunities we see for our company in the luxury market.”
The executive transition comes just days after Saks Global missed its latest debt payment of $100 million on December 30, which ramped up speculation that the retailer was heading toward bankruptcy. “Together with our key financial stakeholders, we are exploring all potential paths to secure a strong and stable future for Saks Global and advance our transformation while delivering exceptional products, elevated experiences and personalized service to our customers,” a Saks Global spokesperson said in a statement when asked about the potential move.
Metrick began his career at Saks in 1995 and steadily rose through the ranks of leadership. He was appointed CEO in 2015, and led the company’s $2.7 billion acquisition of Neiman Marcus, creating Saks Global, last December. The retail group has since struggled under the debt load acquired during the merger, and its financial problems have mounted over the course of the year.
The company has struggled to pay its vendors on time, and in December, Saks factor Hilldun Corporation paused approvals on shipments to Saks after the retailer missed two weeks of payments. Saks’s inventory and selection has suffered as a result, hurting sales. The company has shuttered stores, sold off real estate and reportedly explored a minority share sale of Bergdorf Goodman to cover its debt.
Baker will now be tasked with carrying out a rescue plan for Saks Global, which is the largest multi-brand luxury retailer. A bankruptcy would have significant implications for the entire retail industry, and especially for independent designer brands that have weathered the blow of other multi-brand retail struggles, from Ssense to Matches.
“From building a world-class team to establishing Saks.com as a leading luxury ecommerce platform, I am proud of what we accomplished together,” Metrick said in a statement. “I am deeply grateful to my colleagues, partners, and the entire Saks community for their support and collaboration over the years.”
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