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Saks Global is one step closer to exiting bankruptcy. The company announced on Wednesday that it has entered into a Restructuring Support Agreement with bondholders who will provide $500 million in exit financing when Saks completes the Chapter 11 process. The company expects this to take place this summer.<\/p>\n
Today, Saks also outlined how it will drive profitability upon its exit from bankruptcy this summer, including via a stable financial foundation (propped up by the $500 million); an optimized store footprint; a curated product assortment; personalization for luxury consumers; and a strong employee base. Though industry insiders have speculated about whether the company plans to sell Bergdorf Goodman, there was no mention of a sale.<\/p>\n
\u201cAchieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners\u2019 confidence in our go-forward vision, guided by our relentless devotion to the luxury customer,\u201d CEO Geoffroy van Raemdonck said in a statement. \u201cAs 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.\u201d<\/p>\n
Since declaring bankruptcy<\/a> \u2014 and announcing van Raemdonck as CEO \u2014 in January, Saks has begun to make changes to facilitate its path back to solvency, utilizing the $1.7 billion in financing the company announced at the time<\/a>. Also on March 16, Saks said it had tapped an additional $300 million of the package in order to attain enough liquidity to operate. On February 10, Saks Global announced the closure of eight Saks Fifth Avenue stores and one Neiman Marcus. And on March 6, the company announced that it was closing 12 additional Saks locations and three Neiman Marcus stores.<\/p>\n Earlier in March, Saks also confirmed that it had been focusing on its relationships with brand partners, and said that it had reached or nearly reached agreements with over 175 brands across categories, from large maisons to smaller brands. Last month, the four global fashion councils called on Saks<\/a> to factor the fates of small industry players in its restructuring plans. Today\u2019s update didn\u2019t include any mention of independent designers.<\/p>\n Saks emphasized its progress since filing for bankruptcy in January. As of April 2, more than 650 brands have resumed shipping merchandise, releasing $1.5 billion in retail receipts, which accounts for more than 90% of the retailer\u2019s expected inventory for the first quarter of fiscal 2026, ending on May 2, according to the company. March inventory receipts are also up 18% year-over-year.<\/p>\n \u201cIn a short period of time, we\u2019ve taken decisive actions and made meaningful progress in stabilizing the business and strengthening our relationships with brand partners,\u201d van Raemdonck added. \u201cWhile it will take time to fully realize the benefits of this progress, our sales and inventory results continue to outperform our internal plans. 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.\u201d<\/p>\n More from this author:<\/strong><\/p>\n PVH CEO Says Calvin Klein Is Feeling the Love Story<\/em> Effect<\/a><\/p>\n Violet Grey Is Making a Comeback With More Stores<\/a><\/p>\n