Saks Global Enterprises has gained access to a further $300m from its $1.75bn committed capital pool after senior secured bondholders signed off on the company’s five-year business plan, giving the luxury retailer fresh liquidity as it moves forward with its restructuring and turnaround. The release of the funds completes Saks Global’s pre-emergence financing, which the company said will underpin operations and help finance a multi-banner transformation.
The newly approved business plan—built around improving profitability while maintaining a strong liquidity buffer—will serve as a core pillar of the Saks Global reorganisation plan. Saks Global said it expects to file the plan with the US Bankruptcy Court for the Southern District of Texas in the coming weeks as part of its broader restructuring strategy.
CEO Geoffroy van Raemdonck said the company has moved quickly since the start of the year to stabilise the business and begin reshaping how it operates across its brands. “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 van Raemdonck. “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, Saks Global has focused on repairing ties with brand partners, a move it said has already helped restore product flow. The company reported that nearly 600 brands have resumed shipping, unlocking $1.4bn in retail receipts. Saks Global added that merchandise receipts are now running almost 60% higher month to date in March compared with the same period last year.
Operationally, the group said it is reshaping its store footprint by concentrating on stronger locations in key luxury markets across Saks Fifth Avenue and Neiman Marcus. It has also narrowed its off-price business to 12 sites, positioning those stores as an outlet for remaining inventory from its core luxury banners rather than as a sprawling standalone division.
Supply chain performance is another priority under the Saks Global reorganisation plan. The company said it is centring distribution and service operations around three major facilities in Texas, Pennsylvania and California, aiming to increase delivery speed, elevate the 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.”