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The parent company of luxury retailer Saks announced Thursday that it has entered into a restructuring agreement with its equity partners, committing to provide $500 million in financing as the company emerges from bankruptcy.
Saks Global Enterprises has filed Chapter 11 bankruptcy protection in January after missing a $100 million interest payment in December as the company was saddled with $3.4 billion in debt following its $2.7 billion acquisition of Neiman Marcus.
The company now expects to emerge from bankruptcy this summer amid ongoing restructuring efforts.
“Reaching this important milestone underlines the progress we are making in our transformation and reflects our capital partners’ confidence in our forward-thinking vision, guided by our unwavering commitment to the luxury customer,” said Geoffroy van Raemdonck, CEO of Saks Global.
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Saks Global, the parent company of Saks Fifth Avenue, announced plans to emerge from bankruptcy this summer. (Victor J. Blue/Getty Images)
“As we continue the restructuring process and position Saks Global for the future, our focus remains on strengthening relationships with our brand partners and delivering an expertly curated product assortment and personalized service for our luxury customers at Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said Van Raemdonck.
Saks Global’s announcement indicated that the company will continue to work with his company financial stakeholders about its reorganization plan and expects it to be submitted in the coming weeks.
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Saks Global has offloaded some of its discount locations, including a dozen Saks Off 5th locations. (Jeff Greenberg/Education Images/Universal Images Group via Getty Images)
Additionally, the retailer said Thursday that inventory has improved after more than 650 of its brand partners resumed shipping, which contributed to the inventory increase. customer engagement.
The company aims to unlock the potential of its three businesses luxury banners and stimulate sustainable growth.
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Neiman Marcus is one of the Saks Global brands. (Getty Images)
Saks Global announced last month that it has gained access to an additional $300 million of its $1.75 billion financing of bankruptcies package, which gave it enough liquidity to support operations. A group of his bondholders also approved his five-year business plan.
The retailer said in March it would close 12 Saks Fifth Avenue stores and three Neiman Marcus locations as it restructures.
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In January, the company announced it would close 62 of its off-price operations, including Saks Off 5th and the remaining Neiman Marcus Last Call stores.
Reuters contributed to this report.
