Saks Global rebrands as Exemplar Luxury Group as it exits bankruptcy under new ownership

Saks Global announced the successful completion of its restructuring process, emerging from Chapter 11 under new ownership, with a new name: Exemplar Luxury Group (ELG). The department store group stated that it has reduced its debt by 75 percent, secured sufficient liquidity, and has the full backing of its capital partners and other stakeholders.

The new group is dedicated to driving long-term growth and now has a “solid financial foundation with a right-sized capital structure and the liquidity necessary” for profitability, wrote ELG in a press release on June 26.

The announcement comes weeks after the department store group, which includes multi-brand luxury retailers Neiman Marcus, Saks Fifth Avenue, and Bergdorf Goodman, received the green light from the US bankruptcy court for the Southern District of Texas for its reorganization plan. 

Exemplar Luxury Group completes restructuring, reduces debt by 75 percent

"This pivotal moment reinforces the enduring strength of our business, our luxury banners and our team as we look ahead to a bright future guided by our relentless devotion to our customers," said Geoffroy van Raemdonck, Chief Executive Officer of Exemplar Luxury Group, in a statement. 

"Moving forward as Exemplar Luxury Group reflects the shared ideals that anchor each of our banners and our commitment to setting the standard of excellence for luxury retail across all three. As the gateway to the US luxury customer, we are uniting coveted brands with unrivaled customer experiences to drive growth for Exemplar Luxury Group and the broader luxury ecosystem. We are deeply grateful to our customers, brand partners, capital partners, and colleagues, whose loyalty and support have made this possible."

Under the new restructuring, ELG will continue to build on its integrated retail model, combining an optimised store footprint with e-commerce platforms and remote selling services.

New board of directors appointed for Exemplar Luxury Group

As part of the rebranding, the new group has also reshuffled its board of directors.  Pentwater Capital Management and Bracebridge Capital, the investment firms that have partnered with the department store group throughout the restructuring process, will each have two representatives on the seven-person board.

In addition, Dave Kimbell, former chief executive of Ulta Beauty, the largest US beauty retailer, and Philippe Schaus, former president and global chief executive of Moët Hennessy, have both been appointed as independent directors.

"We greatly appreciate the commitment of our new owners, who understand the value of our banners and the growth opportunity for Exemplar Luxury Group," added Van Raemdonck. "It is a new day for ELG, and we are focused on executing our business plan with discipline and investing in the experiences that matter most to our customers. Neiman Marcus, Saks Fifth Avenue, and Bergdorf Goodman have long set the standard for luxury retail in the US, and we are committed to building upon that legacy."

The restructuring plan included a large overhaul of the ELG store network, which included 33 Saks Fifth Avenue stores prior to filing for bankruptcy. The company now operates 49 department stores, including 33 Neiman Marcus stores, 15 Saks Fifth Avenue stores, and one Bergdorf Goodman store. Under the plan, ELG also seeks to reach 9 billion US dollars in total gross merchandise value (GMV) and a double-digit adjusted EBITDA by the 2029/30 financial year. 

Over the past five months, the group has focused on strengthening its financial position, optimising its store and supply chain networks, and scaling back much of its off-price business to concentrate on luxury and full-price retail.