Saks Global has named Brandy Richardson as its next chief financial officer, a crucial role in light of the luxury retailer’s recent financial pivots and efforts to assure creditors and vendors that it’s now on firmer financial footing.
For Saks, challenges still remain and business throughout luxury retailing remains tough, but Richardson is no stranger to the sector. She has spent the majority of her career at the Neiman Marcus Group where she held several finance leadership roles of increasing responsibility over her 15-year tenure, establishing her as a familiar figure to the industry. New York-based Saks Global purchased NMG for $2.7 billion in December.
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Richardson starts her new job on Aug. 18. She will be succeeding interim CFO Mark Weinsten, who joined Saks Global to lead the company’s finance organization through the initial stages of its transformation following the acquisition.
Richardson joins Saks Global direct from Tailored Brands Inc., where she has served as executive vice president and CFO since 2021. Aside from her knowledge of luxury retail, she is credited with implementing strategic initiatives that led to stronger financial positions and growth.
Marc Metrick, the chief executive officer of Saks Global, in a statement provided to WWD, said that in addition to Richardson’s extensive background in strategic finance, “she has deep experience in luxury, including a long tenure at Neiman Marcus Group, which will be instrumental to driving our financial performance amid the current luxury retail environment. I am confident that she is the right leader to lead our finance organization during this pivotal time for our company and industry.”
“I’m excited to return to luxury retail — a sector I’m deeply passionate about — and join Saks Global at such a pivotal moment, with tremendous opportunities on the horizon,” Richardson said, in another statement. “My tenure at Neiman Marcus Group was fundamental to my career and I look forward to leveraging my foundational knowledge as we work together to redefine luxury shopping.”
Richardson will report to Metrick and join Saks Global’s team in Dallas, where she lives. Richardson and Weinsten will be working together for awhile during a transition period. Saks Global includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th, as well as some U.S. real estate holdings and investments.
Before joining Saks Global in his interim role in February, Weinsten was a managing director in BRG Corporate Finance based in Boston. He’s accustomed to taking on interim roles, and previously served as Neiman Marcus Group’s interim CFO, and earlier, Neiman’s interim chief restructuring officer. He also once served as NMG’s chief operating officer, interim CEO at Z Gallerie and interim CEO of Manischewitz, among other executive roles.
Recently, Saks made an initial $120 million interest payment due to creditors on the $2.2 billion in debt it raised to buy Neiman Marcus. Sources said Saks made the payment on time. Just before making that payment, Saks reached a deal with bondholders for up to $600 million in new financing to increase the company’s liquidity and better meet obligations to vendors, but the maneuver triggered a downgrade by Standard & Poor’s.
The financing package included $200 million in commitments that are subject to certain conditions and a $400 million first-in, last-out (FILO) asset-based credit facility, carved out of the company’s $1.8 billion asset-based facility. But $100 million of the FILO facility included an exchange of some of the $2.2 billion bonds, de-prioritizing some lenders.
Aside from its new borrowings, Saks officials have said that the company’s financial condition will be improving through synergies and consolidations attained after the acquisition. “We have both significantly accelerated our plans for synergy capture and increased our expected annual cost reduction to $600 million over the next few years,” Metrick said in a recent statement.
Although Saks has been slow to pay vendors over the last couple of years, it has lately been said to be making payments to many vendors per its new schedule announced in February. The company is also in the process of making good on past-due bills from last year. Specifically, Saks notified brand partners that effective March 1, vendors will be paid 90 days from receipt of inventory and that all past-due balances will be paid in 12 monthly installments beginning this month.
Vendors are not happy with the 90-day payment schedule, which is very rare in the industry and makes it more challenging for many brands and designers to sustain operations. WWD continues to hear from some vendors indicating that Saks has begun making good on its promises to fulfill payment obligations per its new payment schedule, as well as other vendors who agonize over having yet to see any money come in. Some also cite new chargebacks. One vendor said it is owed several hundred thousands of dollars between Neiman Marcus and Saks from orders shipped and received last year and early this year, and that it froze shipping to the group.
But Saks Global officials have maintained the company has ample liquidity to be stronger partners to brands and that it has a master plan to “reset” how it conducts business. Saks Global is cutting approximately 600 vendors from its matrix.
