Richard Baker, the former chief executive officer (CEO) of Saks Global, has filed an objection to the retailer’s proposed Chapter 11 reorganization plan. This could lead to a lengthy legal battle as the company tries to emerge from bankruptcy.
In a filing in U.S. Bankruptcy Court in Houston, Baker argued that the retailer was trying to remove legal protections set forth in its separation agreement. Baker led Saks Global during its $2.7 billion acquisition of Neiman Marcus and left the company when it filed for Chapter 11 protection in January.
The dispute revolves specifically around the compensation that Baker was granted when he left the luxury company. Manager contends that the proposed plan of reorganization would eliminate or limit these protections despite prior commitments.
Baker, who is also an investor in the Düsseldorf department store group Galeria, had submitted the separation agreement to Saks when the retailer initiated bankruptcy proceedings in January 2025. In the agreement, he agreed to a non-compete agreement for a certain period of time. He also promised to support the company in necessary investigations. In return, he should retain certain legal protections, including the right to incur legal fees or liabilities related to his work.
Baker claims Saks’ reorganization plan would make it harder for him to get a refund and shift compensation toward insurance coverage. He added that the agreement was signed after the bankruptcy filing and therefore cannot be legally changed. He fulfilled his part of the agreement through cooperation. Baker has said he will support the plan if it is amended to reflect respect for his rights.
Baker’s appeal comes amid the ongoing investigation into the circumstances that led to Saks Global’s collapse. Unsecured creditors, including fashion brands and suppliers, who are owed significant sums can now expect to recover little directly from the insolvency proceedings.
In May, Saks received approval from the Texas bankruptcy court for its reorganization plan. The plan was thus released for voting, bringing the company closer to its goal of exiting bankruptcy in the summer.
A creditors’ committee has also advocated for the establishment of a litigation financing fund worth $20 million. This is intended to investigate potential claims relating to the retailer. This includes decision-making in the Neiman Marcus acquisition, executive transactions and other prior business relationships.
More about Richard Baker:
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]