Shoppers exit the Saks Fifth Avenue department store in New York.
Photographer: Victor J. Blue/BloombergConsumer
Saks’ Lenders Sensed Doom Spiral Was Worsening After Unsettling CEO Call
Barely a year after Saks bought rival Neiman Marcus, creditors are in talks over whether to provide more money to keep stores open during a potential bankruptcy process.
When the executive chairman of Saks Global Enterprises hopped on a call with the luxury retailer’s anxious lenders last week, they couldn’t believe their ears.
Richard Baker offered little in the way of solutions to get the retailer back on track and avoid bankruptcy — the fate of some of his other ventures like Hudson’s Bay Co. Rather, at certain points he seemed to be imploring the creditors for any ideas, according to people with knowledge of the call.