US’ Saks Global secures final $300 mn to complete $1.75 bn funding

American luxury retail company Saks Global Enterprises LLC has secured access to an additional $300 million from its $1.75 billion committed capital pool, following approval of its five-year business plan by senior secured bondholders. The latest tranche completes its pre-emergence financing, strengthening liquidity to support ongoing operations and transformation efforts.

The company’s business plan, centred on growth and profitability supported by a strong liquidity position, will form part of its reorganisation strategy. Saks Global expects to file this plan with the US Bankruptcy Court for the Southern District of Texas in the coming weeks, Saks Global said in a press release.

Saks Global has secured an additional $300 million, completing its $1.75 billion pre-emergence financing to support operations and transformation.
The company is strengthening liquidity, improving inventory flow, and optimising stores and supply chains.
Nearly 600 brands have resumed shipments, boosting receipts.
Its reorganisation plan will be filed soon, as it focuses on long-term profitable growth.

“We have made significant progress over the past two months as we work to position Saks Global for the future, quickly stabilising our business, improving inventory flow and investing in our transformation,” said Geoffroy van Raemdonck, CEO of Saks Global. “With continued strong support from our capital partners, we are laying the path to realise the combined full potential of our three banners, achieve double-digit adjusted EBITDA margin and drive profitable and sustainable growth. As we continue to secure a bright future for Saks Global, guided by our relentless devotion to the luxury customer, we are focused on delivering an expertly curated assortment and personalised service across Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”

Since mid-January, the company has undertaken several strategic initiatives to strengthen its operations. These include rebuilding brand partner relationships, which has led to the resumption of shipments by nearly 600 brands and unlocked $1.4 billion in retail receipts. As a result, merchandise receipts have risen by nearly 60 per cent month-to-date in March compared to the same period last year.

Saks Global has also progressed with optimising its Saks Fifth Avenue and Neiman Marcus store network, focusing on high-performing locations in key luxury markets. Additionally, it has streamlined its off-price business to 12 locations, positioning them as channels for residual inventory from its core luxury banners.

Supply chain efficiencies remain a key focus, with the company prioritising three major distribution and service centres in Texas, Pennsylvania and California to enhance delivery speed, improve customer experience and reduce costs.

“This is tremendous progress in a very short period of time,” added van Raemdonck. “I am incredibly proud of our entire leadership team and colleagues across the organisation whose collective strength and focus have enabled us to continue to serve our customers and brand partners as we take decisive steps to build a stronger Saks Global. We remain focused on building on this momentum as we work towards emerging later this year.”

Fibre2Fashion News Desk (SG)