Saks' CEO And President To Depart Upon Closing Of Blockbuster Deal
By Sam Lewis
Canadian retailer Hudson’s Bay names new C-level execs
On Monday, September 16, Saks announced that CEO and Chairman, Stephen Sadove, plans to resign from his position upon the finalization of the transaction that brought the famed clothing retailer to Canadian retailer Hudson’s Bay. Saks’ president and chief merchant, Ronald Frasch, also plans to join Sadove in resignation.
Sadove joined the retailer’s management team in 2002 as vice chairman. In 2004, Sadove was named chief operating officer, which ultimately led to him being named CEO in 2006. Frasch was Sadove’s replacement as vice chairman of Saks in 2004, but has served the role of president and chief merchandising officer since 2007. The leader of Saks’ board of directors, Donald Hess, commented on Sadove and Frasch’s departure, “Steve and Ron have been a great team over the last nine years. They are admired and respected throughout both the company and the retail industry. Their leadership, strategic focus, collaboration, creativity, and enthusiasm for the business have molded Saks into an iconic omni-channel luxury retailer.”
Read how Saks Created a 360 degree view of inventory
In July, Hudson’s Bay acquired Saks and all its subsidiaries for $2.4 billion. The transaction brought the Canadian retailer not only a high-end luxury brand to its collection, but also a prized piece of real estate on Fifth Avenue in Manhattan. The deal has been approved by both retailers’ boards of directors, with it expected to close by the end of the calendar year. When the deal was unveiled, it was expected for Saks to continue to be guided under members of its established management team.
Hudson’s Bay has appointed Marigay McKee — an executive from British department store Harrods — to replace Sandove as the new president of Saks. McKee’s credentials with Harrods include serving as general merchandising manager in beauty and fashion and serving as chief merchant for all stores, as well as serving on the company’s board. Hudson’s Bay CEO Richard Baker says Mckee, “has a proven track record or success at the highest level of luxury and I'm very excited for her to head up our Saks business at HBC.”
The Canadian retailer is also forming an office of the chairman that will include CEO Richard Baker, and COO Donald Watros, both former Saks execs. Hudson’s Bay has also named Marc Metrick as executive vice president, where his initial focus will be integrating Saks into the company. Lastly, Jennifer de Winter, former director of stores for Saks, will assume the role of Saks’ CMO, reporting directly to McKee.