U.S. holding company Saks Global is taking steps to secure its future following bankruptcy protection.
The department store owner has entered into a restructuring support agreement with a group of its senior secured bondholders, who have committed $500 million in exit financing, available for use once the company emerges from chapter 11 proceedings. Saks Global, which operates Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, anticipates filing a Plan of Reorganization in the coming weeks and expects to emerge from bankruptcy this summer.
“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,” said Geoffroy van Raemdonck, CEO of Saks Global, in a statement.
“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 across Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
Stabilizing the business
The financing commitment arrives alongside a series of operational improvements the company says it has made since filing for Chapter 11, including more than 650 brand partners resuming shipping merchandise. Saks Global shares that March inventory receipts rose 18 percent year-over-year.
The company also reported a 6 percent increase in customer spend per store visit and an 11 percent rise in online conversion across Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman compared to the same period last year.
Saks Global CEO Geoffroy van Raemdonck and chief global brands officer Lana Todorovich at the 2024 Neiman Marcus Awards. Image credit: Neiman Marcus Group
Fillng for Chapter 11 bankruptcy protection earlier this year, Saks Global says it will pursue an integrated retail model built around an optimized store footprint in markets with high concentrations of luxury consumers, alongside distinct ecommerce platforms and remote selling services upon emergence (see story).
“In a short period of time, we've taken decisive actions and made meaningful progress in stabilizing the business and strengthening our relationships with brand partners, said Mr. van Raemdonck, in a statement.
“While it will take time to fully realize the benefits of this progress, our sales and inventory results continue to outperform our internal plans,” he said. “This, along with the committed capital we have secured, provides us with sufficient liquidity to complete a successful restructuring and advance our ongoing transformation to ensure a strong future for Saks Global.”
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Bergdorf Goodman is unaffected by the latest change to the corporation’s retail footprint. Image credit: Saks Global 
Saks Global CEO Geoffroy van Raemdonck and chief global brands officer Lana Todorovich at the 2024 Neiman Marcus Awards. Image credit: Neiman Marcus Group
