The recently appointed CEO guiding Saks Global through bankruptcy embraces a leadership approach centered on compassion.

Highlights from Today’s CEO Daily

• Featured Insight: Phil Wahba, a leadership correspondent at Fortune, discusses the appointment of a new CEO at Saks Global as the company navigates bankruptcy.
• Top Headline: Trump softens his stance on Iran.
• Market Update: U.S. futures and European markets are both trending upward.
• And More: Stay updated with the latest news and workplace conversations from Fortune.

Morning Brief

Good morning. Last week, one of our most-read stories among subscribers centered on the unfolding executive shakeup at Saks Global. The story captured attention with its mix of high-stakes business maneuvers, a struggling real estate heir, and luxury retailers facing challenges despite robust consumer spending. The latest development: Saks Global has entered Chapter 11 bankruptcy, and luxury industry veteran Geoffroy van Raemdonck has been tapped to lead the company’s turnaround.

Van Raemdonck brings significant expertise to the table. In 2018, he took the helm at Neiman Marcus Group (which includes Bergdorf Goodman) during a period of heavy debt and financial distress caused by years of private equity ownership—a situation that eventually resulted in bankruptcy. Now, as CEO of Saks Global, he faces an even more complex challenge: revitalizing several luxury chains weighed down by debt from the $2.7 billion merger of high-end department stores in 2024.

During his tenure at Neiman Marcus, van Raemdonck managed to stabilize the company’s market position and restore profitability. He often described his leadership style as “leading with love,” a phrase that sometimes drew skepticism at industry events.

For van Raemdonck, this philosophy meant fostering genuine relationships with customers, aiming to make luxury shopping about more than just transactions. His approach focused on building loyalty through personalized service and ensuring shoppers felt at the forefront of fashion trends. (He sparked debate in 2023 when he told Fortune his strategy was to prioritize affluent clients over aspirational shoppers.)

However, customer loyalty is hard to win back if inventory is outdated or insufficient. One of van Raemdonck’s immediate challenges will be repairing relationships with vendors, as Saks has delayed payments to many suppliers over the past two years due to slow sales and cash flow issues. Some vendors—especially smaller, trendsetting brands—have stopped supplying Saks and Neiman Marcus, allowing competitors like Nordstrom and Bloomingdale’s to capture lost market share.

Van Raemdonck’s background also includes years of experience as a vendor himself, having held leadership roles at Ralph Lauren and Louis Vuitton. This gives him a unique perspective and the ability to communicate effectively with suppliers.

Looking Ahead

His direct experience steering a company through bankruptcy will be invaluable as he works to rebuild Saks Global. Van Raemdonck is adept at engaging with investors, suppliers, and employees simultaneously—a crucial skill as he strives to restore these iconic brands to stability and growth.
—Phil Wahba