A popular retailer named a new chief executive officer on Friday (January 2) amid speculation that it would soon file for Chapter 11 bankruptcy protection.

Saks Global Enterprises, which owns the luxury stores Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, as well as the off-price stores Neiman Marcus Last Call and Saks Off 5th, announced that Richard Baker, the company's executive chairman, would take over as CEO while also retaining his prior role in a press release.

"I look forward to continuing to work with our highly experienced management team, valued partners, and other stakeholders to secure a strong and stable future for our company. Across Saks Global, with our deep industry expertise, well-established relationships within the luxury sector, and talented employees, we will strengthen our position so that we can capitalize on the many opportunities we see for our company in the luxury market," Baker said.

The announcement followed multiple reports of the company facing potential bankruptcy. Saks Global Enterprises was reported to be facing more than $100 million debt payment due at the end of the month, sources with knowledge of the situation confirmed to Bloomberg.

Ragini Bhalla, head of brand and spokesperson for Creditsafe, also painted a gloomy picture of the company's financial situation in an email to TheStreet citing publicly available financial information.

“Saks Inc.’s Days Beyond Terms (DBT) data over the past twelve months reveals a persistent and troubling pattern of late payments that point to sustained cash flow distress. DBT measures how many days late a company pays its bills. Throughout the entire year, Saks’ DBT has hovered well above the industry average of 10-12 days, ranging from a low of 27 in November 2024 to a high of 41 in January 2025 and March 2025,” she wrote.

“This indicates that Saks has consistently taken nearly a month or more to pay its suppliers late,” Bhalla added.

Multiple sources with knowledge of the situation confirmed to Puck Media Company that Marc Metrick, the executive who oversaw Saks Global Enterprises' acquisition of Neiman Marcus Group, was expected to exit the company prior to the announced decision. Saks Global Enterprises has, however, publicly denied any bankruptcy concerns.

“We are making strong progress to reduce outstanding payments, invest in our transformation and drive improved performance," the company said in a statement to TheStreet. "It is important to note that a restructuring is not being contemplated. We have sufficient liquidity after raising $600 million in financing this summer from existing bondholders. At the same time, with inventory levels normalizing and the significant synergies from our integration, we expect performance to improve through the holiday season and into 2026."

Mark Madden