Can Saks’ newly appointed CEO undo the harm caused to the luxury retailer after years of being used primarily for financial maneuvering?

Geoffroy van Raemdonck Faces New Challenge at Saks Global

Geoffroy van Raemdonck, a seasoned leader in the luxury retail sector, once again finds himself at the helm of a struggling department store empire. In 2018, he was brought in to turn around Neiman Marcus Group, which was grappling with changing consumer preferences and the burden of significant debt from years under private equity control.

Now, his latest assignment is even more daunting. On Tuesday, van Raemdonck was named CEO of Saks Global—the same day the luxury retail conglomerate, which includes Neiman Marcus Group (and its Bergdorf Goodman division) and Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection.

Saks Global emerged from a $2.7 billion merger orchestrated in 2024 by real estate magnate Richard Baker. The deal quickly unraveled due to declining sales and overwhelming debt, resulting in frustrated suppliers, depleted inventory, and a dwindling customer base.

Baker, the former executive chairman of Saks Global, has a history of unsuccessful retail acquisitions, with many of his ventures ending in failure. After a brief stint as CEO, he handed over a company in disarray to van Raemdonck. Despite the challenges, van Raemdonck is seen as someone who understands what it takes to revive a luxury department store brand.

During his six-year tenure leading Neiman Marcus, van Raemdonck steered the company through the pandemic and restored its profitability. He often emphasized the importance of creating emotional connections with customers, insisting that luxury retail must be about more than just sales. At a WWD CEO conference in late 2024, he recalled challenging his executive team to find ways to reignite customer passion—a question he must now answer for Saks Global. (Van Raemdonck declined to comment for Fortune.)

Repairing Relationships with Vendors

Winning back the trust of both customers and suppliers is crucial as Saks Global navigates bankruptcy. Over the past two years, the company has delayed payments to many vendors due to sluggish sales and mounting debt. Major luxury brands like Chanel, Kering, and LVMH are collectively owed $225 million, highlighting the scale of the problem van Raemdonck must address.

Many suppliers have halted shipments to Saks stores, leading to empty shelves and outdated merchandise—hardly the environment that attracts luxury shoppers. This contributed to a 13% decline in revenue for the quarter ending August 2, 2025. These issues stemmed from Baker’s focus on acquisitions and conserving cash for debt payments, often at the expense of vendor relationships.

The Evolving Role of Department Stores

Recent years have shown that department stores are no longer essential partners for brands. Failing to pay suppliers not only damages relationships with established brands but also discourages emerging labels from partnering with the retailer.

This shift is partly due to broader cultural changes. As Jason Goldberg, chief commerce strategy officer at Publicis Groupe, points out, consumers now discover new luxury brands primarily through social media influencers, rather than curated selections in department stores.

Department Stores Still Matter—With the Right Approach

Despite these challenges, Saks and Neiman Marcus still play a significant role in the $100 billion U.S. luxury goods market, generating an estimated $8 billion in combined revenue last year. The recent growth of competitors like Nordstrom and Bloomingdale’s—often at Saks’ expense—demonstrates that upscale department stores can thrive if they maintain strong brand partnerships.

In its bankruptcy announcement on Wednesday, Saks Global revealed it had secured $1.75 billion in financing, which will help resume payments to suppliers—a critical step in rebuilding trust.

Leadership Experience and Internal Challenges

Van Raemdonck’s background includes years of experience on both the retail and vendor sides, having worked at Ralph Lauren and Louis Vuitton. This gives him a unique perspective on the needs and concerns of suppliers.

He also recognizes the importance of retaining key talent, from store associates to those who shape the retailer’s fashion authority. Recently, several high-profile employees, such as personal shopping expert Catherine Bloom and Bergdorf Goodman’s merchandising director Yumi Shin, have left for competitors like Nordstrom. Van Raemdonck will need to reassure remaining staff and prevent further departures.

Another reason for his appointment is his proven ability to guide companies through bankruptcy, as he did with Neiman Marcus Group in 2020 during the pandemic-induced downturn.

Looking Ahead: Restructuring and Recovery

The road to recovery will not be easy. While Saks Global has not explicitly announced store closures, the company stated it is “evaluating its operational footprint to invest resources where it has the greatest long-term potential.” With Saks operating about 33 stores and Neiman Marcus 36—sometimes in the same malls or neighborhoods—some consolidation is likely inevitable.

Under van Raemdonck’s leadership, Neiman Marcus managed to defend its market share despite industry headwinds. While transforming Saks Global into a rapidly growing retailer is a tall order, many in the industry believe he is well-suited for the challenge.

“He has a deep understanding of retail, luxury, and the brands within the group. Nevertheless, restoring the company will be a formidable task,” said Neil Saunders, managing partner at GlobalData. “Ultimately, the key takeaway from Saks’ situation is that retailers should be managed as retailers, not as vehicles for financial engineering.”

This article was originally published on Fortune.com.