Saks Global finalizes a $500M agreement and plans to emerge from Chapter 11 this summer

Saks Global Enters Restructuring Agreement Amid Bankruptcy

Saks Global Enterprises, the parent company of luxury retailer Saks Fifth Avenue, announced on Thursday that it has reached a restructuring deal with a capital partner who is set to provide $500 million in financing once the company exits bankruptcy.

The company filed for Chapter 11 bankruptcy protection in January, following a missed $100 million interest payment in December. This occurred as Saks amassed $3.4 billion in debt due to its $2.7 billion acquisition of Neiman Marcus.

Currently, Saks is projected to emerge from bankruptcy this summer as it continues its restructuring efforts.

“This milestone marks significant progress in our transformation and shows the confidence our capital partners have in our future vision, which remains focused on our luxury customers,” stated Geoffrey van Raemdonk, CEO of Saks Global.

Saks Global had previously filed for bankruptcy after acquiring Neiman Marcus for $2.7 billion.

As the company works through its restructuring, it is committed to strengthening ties with brand partners while providing curated selections and personalized service across Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, Van Raemdonk added.

In its recent announcement, Saks noted improvements in inventory, with over 650 brand partners resuming shipping, positively impacting sales and customer engagement.

The company has also been considering a restructuring plan that is anticipated to be submitted in the coming weeks.

Despite some difficulties, Saks Global announced last month that it secured an additional $300 million of its $1.75 billion bankruptcy financing, ensuring sufficient liquidity for ongoing operations. Bondholders have also approved the company’s five-year business plan.

Earlier in March, it was revealed that Saks would be closing down 12 Saks Fifth Avenue stores and three Neiman Marcus locations as part of its restructuring strategy. This follows the closure of 62 off-price stores, including Saks Off Fifth and the remaining Neiman Marcus Last Call stores.