Marc Metrick, the chief executive officer of luxury retail group Saks Global, is reported to be preparing to step down, as the company faces mounting financial and operational uncertainty.
Any potential exit would come at a sensitive time for the group. Reports last week indicated that Saks Global is considering a Chapter 11 bankruptcy filing in the United States as financial pressures intensify. The company is due to make an interest payment of more than $100 million by the end of the month, adding strain to cash flows amid cautious consumer spending.
Saks Global has said that a bankruptcy filing would be a last resort and that it is examining all available options to secure a stable long-term future.
Metrick was appointed chief executive following the formation of Saks Global after Saks completed its acquisition of Neiman Marcus Group last year. He has been with Saks since 1995 and has held a series of senior roles over nearly three decades, including chief executive of the Saks brand.
In October, reports emerged that several senior executives were leaving the group as part of a broader reorganisation, with Metrick expected to take on a more direct role in managing relationships with brand partners. An internal communication to staff at the time stated that the integration of Saks and Neiman Marcus Group had progressed faster than anticipated and that, despite a decline in group revenues, signs of improvement were emerging in the latter part of the year.
Despite those indications, Saks Global has taken steps to contain financial pressures, including job cuts, store closures and, according to reports, exploring the sale of a stake in Bergdorf Goodman.
A final decision on whether to seek Chapter 11 protection has not been made. The company is said to be assessing alternative refinancing options, including a debtor-in-possession loan that would allow operations to continue during a court-supervised restructuring.
