@cnn Saks Global, the parent company of luxury retailer Saks Fifth Avenue, filed for Chapter 11 bankruptcy protection late Tuesday. The company had struggled with a heavy debt load following its purchase of rival Neiman Marcus in 2024. #CNN #News
Saks filed for bankruptcy after drowning in debt used to acquire Neiman Marcus. It’s a case of eyes bigger than your stomach or eating more than what you can chew.
Sounds like what happened to Del Monte. The Philippines-headquartered Del Monte Pacific, eventually became the Asia Pacific entity. It then acquired the US-based Del Monte Foods Corp, the former parent. It’s like David swallowing Goliath whole. The roles were reversed; the former parent becomes a unit — albeit a headache-inducing offspring.
And now the Philippines-based parent is raising USD 600m to pay debts… Eating more than it can chew.