Saks Global has secured $350 million in financing commitments from SLR Credit Solutions, including a $300 million first-in, last-out facility and a $50 million secured term loan, with the transaction expected to close by June 30.
The luxury retail group, owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, has faced increasing financial pressure since its $2.7 billion acquisition of Neiman Marcus Group late last year.
The new funding is seen as critical for keeping the business afloat heading into the crucial holiday shopping season.
“Without it, Saks wouldn’t have had enough cash to pay vendors ahead of the season,” said Tim Hynes, head of credit research at Debtwire, who told Retail Dive the company had been working with bondholders on aggressive restructuring plans.
Saks Global now expects to have around $700 million in available liquidity. “We are well positioned to continue delivering for all of our stakeholders, including our brand partners,” CEO Marc Metrick said in a statement.
That reassurance comes amid mounting vendor tensions. Three weeks ago, S&P Ratings flagged the company’s “less-than-adequate liquidity” and warned that delayed vendor payments were impairing its ability to build seasonal inventory.
As of February 1, Saks had $1 billion in outstanding debt linked to the Neiman Marcus deal and strained cash flow from delayed vendor payments and seasonal draws.
S&P analysts noted that the company’s efforts to stretch payables had led to vendors withholding inventory, which in turn weakened its asset-based lending (ABL) borrowing base.
While inventory receipts have improved at both Saks Fifth Avenue and Neiman Marcus, S&P still expects Saks to post a free cash flow deficit for 2025 and 2026.
Bloomberg reported that on a recent call with creditors, Saks revealed an adjusted net loss of over $100 million last year and said $275 million in vendor payments are still overdue.
Despite these setbacks, the company said synergy gains from its integration of Neiman Marcus are exceeding expectations.
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