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Saks Global CEO Marc Metrick is stepping down amid reports that the company, which owns luxury department store chains including Saks Fifth Avenue and Neiman Marcus, is preparing to file for bankruptcy protection, the retailer said Friday.
Metrick, who oversaw Saks’ $2.7 billion acquisition of Neiman Marcus last year, will be succeeded by the company’s executive chairman, Richard Baker.
Baker is taking over operations as Saks Global is reportedly in discussions with its creditors after missing a $100 million debt payment to its bondholders this week.
Throughout last year, Saks repeatedly delayed payments to its vendors.
Saks is yet to publicly comment on the bankruptcy reports.
“After nearly three decades with Saks, I will be stepping down as chief executive officer,” Metrick said in a statement. “From building a world-class team to establishing Saks.com as a leading luxury ecommerce platform, I am proud of what we accomplished.”
The company said the exec, who led Saks Fifth Avenue since 2015, is leaving to “pursue new opportunities.”
Sales by Saks Global stores, which include Bergdorf Goodman and Saks Off 5th, dropped 13% in the company’s most recent quarter, which ended Aug. 2.
Saks raised $600 million in capital to cover its debt payment in June, and it has sought to sell a minority stake in Bergdorf to raise more funds.
The merger with Nieman Marcus coincided with a slump in demand for luxury goods.
There have been several rounds of layoffs this year at the company, which operates more than 70 department stores and is the largest luxury retailer in the world.
“Marc has been a valued leader at Saks for many years, helping to drive significant transformation and growth while solidifying the company’s enduring position in luxury,” Baker said in statement. “We thank Marc for his leadership and dedication and wish him continued success in his next chapter.”
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