Saving the Luxury Store Dream

Saks Global, which owns famous names like Saks Fifth Avenue and Neiman Marcus, fell into bankruptcy a little over a year after it was created. Many people blamed the former chairman, Richard Baker, for the collapse. In a quiet meeting in Manhattan, he told reporters that he was actually trying to help luxury department stores survive. Baker said the store’s problems came from outside forces. Customers were spending less because of the economy, high import taxes hurt profits, and a popular online newsletter made suppliers worry about getting paid. These factors pushed the company into trouble.The bankruptcy meant that 57 Saks Off 5th stores and all five Neiman’s Last Call locations shut down. Hundreds of employees lost their jobs, with more layoffs expected. Big brands such as Chanel and Zegna owe the company over $700 million, while smaller designers risk disappearing if they can’t find new outlets. Baker’s history with department stores is long. He ran Lord & Taylor for thirteen years before selling it in pieces, then bought Hudson’s Bay in Canada and sold it in 2024. Each time the retailer struggled after his departure. Despite the criticism, Baker argues that he tried to make these stores work and that many of the failures were due to market conditions beyond his control. He believes he has played a key role in keeping luxury retail alive, even if it hasn’t always looked that way.