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Market Developments

Saks CEO, president out after merger


New York--The two top executives at Saks Inc. will be gone once the company’s $3 billion merger with Canadian retailer Hudson’s Bay Company is complete, Saks announced Monday.

Stephen Sadove, chairman and CEO of Saks, and President and Chief Merchant Ronald Frasch, who have worked together for the past nine years, will leave the company at the end of the calendar year provided the merger closes when expected. Each company’s board of directors already has approved the merger. 

Sadove joined Saks’ management team as vice chairman in January 2002, became chief operating officer in March 2004 and CEO in January 2006. In May 2007, he assumed the additional title of chairman.

He also serves on Saks’ board of directors, and has done so since September 1998. Beginning in 1996, he was on the board of Saks Holdings Inc.

Frasch began working at Saks in January 2004 and in November 2004 became vice chairman and chief merchant at Saks Fifth Avenue. He was named president and chief merchandising officer in February 2007.

Saks Inc. has a total of 110 stores, 41 Saks Fifth Avenue and 69 Off 5th stores, and operates

Its merger with Hudson’s Bay Company, announced in July, is one of two recent consolidations among high-end department store chains. Neiman Marcus was sold last week in a $6 billion deal.