Saks Global secures $300 million in funding for the final tranche of its financing plan

Investing.com – Saks Global Enterprises LLC announced on Monday that, after its senior secured bondholders’ special committee approved its five-year business plan and other key milestones, the company has gained access to an additional $300 million of the committed $1.75 billion in capital. This final tranche of funding completes the pre-bankruptcy financing plan.

The luxury retail company stated that the funds will provide sufficient liquidity to continue supporting operations and advancing its transformation, focusing on serving luxury customers, strengthening brand partnerships, and driving full-price sales.

Saks Global CEO Geoffroy van Raemdonck said, “Over the past two months, we have made significant progress in positioning Saks Global for the future, quickly stabilizing the business, improving inventory flow, and investing in transformation.”

Van Raemdonck added that with ongoing support from capital partners, the company is working to realize the full potential of its three brands—Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—achieving double-digit adjusted EBITDA margins and driving profitability and sustainable growth.

Key elements of the business plan will be incorporated into the company’s restructuring plan, which assumes growth and profitability supported by strong liquidity. The plan is expected to be filed with the U.S. Bankruptcy Court for the Southern District of Texas in the coming weeks.

Since mid-January, the company has executed multiple strategic actions. Nearly 600 brands have resumed shipping, releasing $1.4 billion in retail revenue. These efforts have resulted in nearly 60% higher merchandise receipts from the beginning of March compared to the same period last year.

The company is advancing plans to optimize the Saks Fifth Avenue and Neiman Marcus store portfolios, creating a more productive footprint, including locations that perform best and are most ideal in markets with high concentrations of luxury customers.

Saks Global is streamlining its discount business to 12 stores, serving as a sales channel for remaining inventory of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

The company is also optimizing its supply chain network, prioritizing three distribution and service centers in Texas, Pennsylvania, and California, which have been invested in recent years to support faster delivery, improve customer experience, and enhance cost efficiency.

Van Raemdonck stated that the company remains focused on maintaining this momentum as it works toward emerging from bankruptcy later this year.

Legal advisors include Willkie Farr & Gallagher LLP and Haynes and Boone, LLP; PJT Partners LP serves as the investment bank; Berkeley Research Group is the financial advisor; and C Street Advisory Group is the company’s strategic communications consultant.

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