Former Saks Global CEO challenges bankruptcy plan

Former Saks Global chief executive officer Richard Baker has objected to the retailer’s proposed Chapter 11 reorganisation plan, potentially prompting what could result in a lengthy legal battle as the company moves towards emerging from bankruptcy.

In a filing with the US Bankruptcy Court in Houston, Baker, who oversaw Saks Global during its 2.7 billion dollar acquisition of Neiman Marcus before departing as the company filed for Chapter 11 protection in January, argued the retailer is attempting to remove legal protections preserved in his separation agreement.

The dispute specifically centres around indemnification rights granted to Baker when he left the luxury business, with the executive claiming that the proposed reorganisation plan would remove or limit those protections despite previous commitments.

Baker had filed the separation agreement with Saks when the retailer entered bankruptcy proceedings in January 2025. In the deal, he agreed not to compete with Saks for a period of time, to help the company with any necessary investigations, and in turn, he would keep certain legal protections, including the right to have the company cover legal expenses or liabilities related to his work.

Baker claims that Saks' reorganisation plan would make it harder for him to get reimbursement and would shift indemnification to insurance coverage. He added that the agreement was signed after the bankruptcy filing, so it can't legally be amended, and that he has fulfilled his side of the deal by cooperating. Baker has said that the plan will receive his backing if it is modified to clarify the preservation of his rights.

Baker's challenge comes amid continued scrutiny regarding the circumstances surrounding Saks Global’s collapse, with unsecured creditors, including fashion brands and suppliers owed significant sums, now expected to recover little directly through the bankruptcy process.

In May, Saks received approval from the Texas bankruptcy court for its reorganisation plan, opening it up to voting moving it closer to the goal of emerging from bankruptcy in the summer.

A creditor committee has further pushed for the creation of a 20 million dollar litigation trust to investigate potential claims linked to the retailer, including decision-making surrounding the Neiman Marcus acquisition, executive transactions and other historical business dealings.