Saks CEO steps down as luxury retailer struggles under heavy debt load

Saks Global Enterprises said Friday that the departure of CEO Marc Metrick is effectual immediately, and that helium volition beryllium replaced by Executive Chairman Richard Baker. Baker volition proceed to service arsenic enforcement chairman.

In summation to indebtedness from Saks' $2.65 cardinal acquisition of Neiman Marcus successful the summertime of 2024, the institution is facing expanding contention from a fragmenting luxury goods sector.

Hudson’s Bay Co., the Canadian proprietor of Saks Fifth Avenue, divided disconnected the luxury retailer’s e-commerce business, Saks.com successful 2021. After acquiring Neiman Marcus 3 years later, Saks Fifth Avenue changed its sanction to Saks Global.

Saks Global, based successful New York City, completed a $600 cardinal notes offering successful August successful an effort to bolster its liquidity pursuing the Neiman Marcus acquisition.

The institution is trying to winnow down its dense indebtedness load with planetary income of luxury goods that are expected to declaration for the 2nd consecutive twelvemonth successful 2026. Wealthier customers person rebelled against extravagant terms hikes connected goods that haven't drummed up overmuch excitement, successful summation to increasing anxiousness astir the planetary economy, according to a caller survey by Bain & Co. consultancy released successful November.

Metrick joined Saks Fifth Avenue successful 1995 and held a assortment of positions astatine Saks and Hudson’s Bay. He was named CEO of Saks Fifth Avenue successful 2021 and CEO of Saks Global successful 2024.

The institution said Friday that helium is stepping down to prosecute caller opportunities.