Saks Global secures 500 million dollars financing to support restructuring

US luxury retailer Saks Global has entered into a Restructuring Support Agreement with an ad hoc group of senior secured bondholders, securing a commitment for 500 million dollars in exit financing as it prepares to emerge from Chapter 11.

The agreement is a key step in the company’s broader restructuring process, with Saks continuing discussions with stakeholders on a Plan of Reorganisation, which is expected to be filed in the coming weeks.

Saks Global aims to establish a stronger financial foundation and position its three luxury banners, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, for long-term growth.

In a statement, Geoffroy van Raemdonck, CEO of Saks Global, said: “Achieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners' confidence in our go-forward vision, guided by our relentless devotion to the luxury customer.

“As we advance the restructuring process and position Saks Global for the future, our focus remains on strengthening our brand partner relationships, and delivering an expertly curated product assortment and personalized service for our luxury customers.”

The company expects to emerge from Chapter 11 this summer with a streamlined capital structure and improved liquidity. Its strategy includes an integrated retail model combining physical stores in key luxury markets with e-commerce and remote selling services.

Since the bankruptcy filing, Saks Global has reported progress across operations, with more than 650 brands resuming shipments, inventory receipts increasing, and improvements in customer engagement, including higher spend per visit and stronger online conversion.

Van Raemdonck added: “In a short period of time, we've taken decisive actions and made meaningful progress in stabilising the business and strengthening our relationships with brand partners. Our sales and inventory results continue to outperform our internal plans.”