US EditionSaks Global Accesses Initial Tranche of $1.75 Billion Financing Package
Saks Global accessed $500 million of $1.75 billion to maintain liquidity, support payments to brand partners, and accelerate inventory during Chapter 11 restructuring, the company said.
- A Houston judge approved a $1.75 billion bankruptcy financing plan, enabling Saks Global Enterprises LLC to draw an initial $500 million tranche on Friday.
- Burdened by a $2.7 billion acquisition, Saks Global filed for bankruptcy late Tuesday after relying on an asset-backed lender amid a cash crisis.
- The funding is intended to facilitate go-forward payments to brand partners and accelerate inventory flow as Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman remain open but held back by lack of inventory.
- Brands have grown cautious about shipping merchandise while Saks is in Chapter 11, citing concerns as Saks executives maintain the pre-bankruptcy 120-day payment terms, while brands assert standard net-90 terms.
- The company framed the funding as the first Chapter 11 milestone, with court orders preserving payroll and vendor obligations across 70 full-line luxury locations and nearly 13 million square feet.
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Saks Global Filed For Bankruptcy After $1.75B Financing Failed To Rescue
Saks Global filed for bankruptcy protection late Tuesday, barely a year after consolidating Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus, and it is entering court with both a leadership overhaul and a financing backstop intended to keep stores operating. Saks Global said it finalized a $1.75 billion financing package and that stores would remain […]
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