Saks Global has secured access to the first $500 million of its $1.75 billion bankruptcy financing package, providing a critical liquidity lifeline days after filing for Chapter 11 protection.
A bankruptcy judge in Houston approved the initial funding on Friday, Jan. 16, allowing the luxury department store group to continue operating as it restructures.
The approval came just ahead of a looming cash shortfall, according to WWD.
The company said the capital will support ongoing operations, enable payments to brand partners and accelerate inventory flow across its stores and e-commerce channels.
Geoffroy van Raemdonck, the former Neiman Marcus chief who was recently appointed CEO of Saks Global, said the funding is central to stabilizing the business.
Related Story
“Access to this significant capital is instrumental as we work to strengthen our financial foundation and best position Saks Global for the future,” van Raemdonck said in a statement.
“Our stores and e-commerce experiences remain open and focused on delivering exceptional products, elevated luxury experiences and highly personalized service,” he added.
“Through this process, we have the opportunity to build a more resilient company, primed for lasting financial and operational stability.”
Saks Global filed for bankruptcy last Tuesday following mounting liquidity pressures and vendor payment challenges.
Willkie Farr & Gallagher and Haynes and Boone are serving as legal counsel to the company.
PJT Partners is acting as investment banker, Berkeley Research Group as financial advisor, and C Street Advisory Group as strategic communications advisor.
Click here to sign up to Retail Gazette‘s free daily email newsletter
