Saks Global Plans Bankruptcy Exit
Saks Global, which oversees Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has announced it aims to exit bankruptcy this summer. They’ve secured $500 million in financing aimed at assisting with this transition.
Neiman Marcus and Bergdorf Goodman have entered a “restructuring support agreement” with some bondholders, intending to reassure vendors about payments for the merchandise delivered to the luxury department stores.
After filing for bankruptcy on January 14th, around 650 vendors who had previously withheld business due to missed payments have resumed partnerships with Saks. This revival has led to about $1.5 billion in retail receipts, covering more than 90% of the inventory forecasted for the first quarter of 2026.
In the meantime, Saks has been actively cutting costs, which has included the elimination of approximately 1,200 jobs, as reported by the New York Post.
Currently, about 20 Saks Fifth Avenue locations are set to close, leaving just 13 operational. Additionally, most Saks Off 5th stores are also shutting down. Nevertheless, Saks Global plans to retain 32 luxury stores moving forward.
March saw an 18% increase in inventory receipts compared to the previous year when many vendors exited due to overdue payments, which had a significant negative impact on sales.
This influx of stock seems to be positively affecting customer interactions, with shoppers spending as much as 6% more with each store visit. Online conversions have risen by about 11%, alongside “notable improvements in full-price selling across all Saks Global luxury retail brands” since the bankruptcy filing.
Financing from bondholders, which will become available post-bankruptcy, is viewed as an “important milestone.” This agreement, as noted by company representatives, reflects the ongoing transformation and the confidence of their financial partners.
Saks Global encompasses Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. These brands have seen considerable scaling back throughout the bankruptcy process initiated with their Chapter 11 filing in January—a common strategy for businesses to reorganize debt while remaining operational.
It is anticipated that about two dozen full-line stores, principally Saks Fifth Avenue locations, will be shutting down. Saks Global indicated that this move is aimed at optimizing its store presence in markets that boast a high density of luxury clientele.
CEO Geoffroy van Raemdonck remarked that the magnitude of the exit financing signals significant progress in a relatively short span, reflecting strong confidence from capital partners.
As the restructuring unfolds, the focus remains on solidifying brand partnerships and delivering a well-curated product selection along with personalized service across Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
Since acquiring Neiman Marcus in a $2.7 billion deal, the company has accrued over $4 billion in debt.
Despite selling nearly $336 million worth of merchandise in February, Saks Global reported a post-expense loss of $77 million, according to court documents.
The comprehensive restructuring plan is expected to be fully operational by April 24th, as noted by Sarah Foss, the global head of legal and restructuring at Debtwire. The $500 million financing marks a crucial step as Saks Global aims to exit bankruptcy.
