The new company combining Saks and Neiman Marcus Group will be mainly led by the Saks team, but with many traditional functions stripped away.
Having succeeded at last, now he and his management team have to make the combined group work. The completion of the $2.7 billion deal, announced Monday, comes as Saks continues to struggle, delaying payments to vendors, and as Baker negotiated to lock up the financing.
At the start, Apollo was slated to help fund the acquisition with a $1.15 billion fully committed term loan. But as the fall wore on, there were increasing questions about whether or not the private equity giant would indeed be part of the deal, with some sources saying yes and some saying no.
But now the company has a new angle, with fresh financing, new equity partners and a new business model to iron out with Neiman Marcus. Metrick told WWD that the transaction “recapitalizes the company and puts us in a much better cash position and much better position operating the business.” Along with the announcement of the closing, Saks disclosed several fundamental changes in how Saks Global will operate and integrate the Neiman Marcus Group, as well as a flurry of executive changes at the top rungs of the enterprise and executive departures.
Tracy Margolies, who was chief merchandising officer for Saks, has been appointed president of Bergdorf Goodman. She succeeds Darcy Penick. Margolies, who before joining Saks worked at Bergdorf’s, has been “a key partner of mine,” Metrick said. “Tracy’s deep expertise and track record of leading results-driven strategies will propel Bergdorf Goodman into the future while honoring its unique legacy.
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