Saks Global is emerging from the merger and rebranding as the Exemplar Luxury Group
FOX Business’ Madison Alworth reports on the NYC Democrats’ proposed tax that could saddle luxury homeowners with additional annual fees and destabilize the city’s housing market.
Luxury retailer Saks Global announced on Friday that it will adopt a new name after exiting bankruptcy after reducing the number of its stores and reducing its debt obligations.
The company – parent of luxury brands including Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman – will operate under the new name Exemplar Luxury Group (ELG) and will focus on luxury retail.
“Moving forward as an Exemplar Luxury Group reflects the common goals that underpin each of our banners and our commitment to setting the highest level of luxury retail across all three,” said CEO Geoffroy van Raemdonck.
“As the gateway to the US luxury customer, we combine coveted brands with unparalleled customer experience to drive the growth of Exemplar Luxury Group and the broader ecosystem around it,” he added.
SAKS GLOBAL EXPECTS TO EXIT FROM LIABILITY THIS SUMMER AFTER RECEIVING $500M IN FUNDING
Saks Global is rebranding as Exemplar Luxury Group after bankruptcy and restructuring. (Mike Segar/Reuters)
The company said the bankruptcy restructuring allowed it to eliminate 75% of its previous debt, while the process also wiped out its equity and reduced the number of its stores.
It exited bankruptcy with 49 stores after closing 62 of its off-price locations, including 57 Saks OFF 5th and all five Neiman Marcus Last Call stores.
The company also closed 12 Saks Fifth Avenue stores in March, as well as three Neiman Marcus locations. It entered the collection with 33 Saks Fifth Avenue locations.
SAKS GLOBAL FILES FOR DEATH AFTER $2.7B ACQUISITION OF NEIMAN MARCUS
The rebranded firm is the parent of brands including Neiman Marcus. (Noam Galai/Getty Images)
During the restructuring, Saks Global ended its relationship with Amazon to sell its products on the e-commerce site during the restructuring after facing a backlash of expensive products in terms of sales in the mass market.
Saks Global’s $2.7 billion merger with Neiman Marcus in 2024, brokered by the company’s former CEO, was designed to create a luxury base but burdened Saks with debt at a time when global luxury sales were declining — a dynamic that was already difficult to reverse.
SAKS FIFTH AVENUE IS CLOSING SAN FRANCISCO LOCATION AFTER NEARLY 45 YEARS
The restructuring saw the parent company close off-price locations such as Saks OFF 5th. (Jeff Greenberg/Educational Images/Common Images Group via Getty Images)
After struggling with weak sales for more than a year as its debt mounted, Saks filed for bankruptcy in January with $3.4 billion in debt, including more than $337 million owed to key suppliers such as Chanel and Kering, owner of Gucci.
The company received approval for a $1 billion loan in February and plans to use $600 million of that money to cover vendor payments.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
ELG’s new board will include two representatives each from the investment firms Pentwater Capital Management and Bracebridge Capital that partnered with the company during the restructuring process.
Reuters contributed to this report.
