Saks Global has unlocked a further $300 million in financing as part of its ongoing restructuring, following approval of its five-year business plan by a group of senior secured bondholders.
The funding forms part of the $1.75 billion in committed capital the luxury retail group secured when it filed for bankruptcy earlier this year. The company said the additional tranche was released after hitting key milestones tied to its turnaround strategy.
The plan, which outlines a path to growth and profitability supported by improved liquidity, will be incorporated into Saks Global’s formal reorganization proposal, expected to be filed with the U.S. Bankruptcy Court for the Southern District of Texas in the coming weeks.
The latest $300 million completes Saks Global’s pre-emergence financing package, giving the company sufficient liquidity to maintain operations and continue its transformation.
CEO Geoffroy van Raemdonck said the retailer has made rapid progress since filing, including stabilising operations, improving inventory flow and investing in long-term transformation initiatives.
“With continued strong support from our capital partners, we are laying the path to realize the combined full potential of our three banners, achieve double-digit adjusted EBITDA margin and drive profitable and sustainable growth,” he said.
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As part of its restructuring, Saks Global is significantly reducing its store footprint and sharpening its focus on full-price luxury retail.
The company is closing 20 Saks Fifth Avenue locations and four Neiman Marcus stores. It is also scaling back its off-price operations, shuttering the majority of Saks Off 5th stores (57 locations) along with four Last Call outlets.
Saks Global’s portfolio also includes Bergdorf Goodman.
The retailer is consolidating its supply chain network around three core distribution and service centres in Texas, Pennsylvania and California, aiming to improve delivery speeds, enhance customer experience and reduce costs.
At the same time, Saks Global has been working to rebuild relationships with brand partners. The company said nearly 600 brands have resumed shipments, unlocking $1.4 billion in retail inventory.
These efforts have driven a nearly 60% increase in merchandise receipts in March month-to-date compared with the same period last year.
Van Raemdonck said the early progress demonstrates momentum in the turnaround, with the company targeting an exit from bankruptcy later this year as it continues to reposition the business for sustainable growth.
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