This final tranche provides Saks Global with sufficient liquidity to continue to support operations and advance its transformation
Saks Global Enterprises, a multi-brand luxury retail company, said that it has secured access to an additional USD 300 million of the USD 1.75 billion in committed capital following approval of its five-year business plan by an ad hoc group of the company’s senior secured bondholders.
This final tranche completes the pre-emergence financing package, providing Saks Global with sufficient liquidity to continue to support operations and advance its transformation as it focuses on serving luxury customers, strengthening brand partner relationships and driving full-price selling.
“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. With continued strong support from our capital partners, we are laying the path to realise the combined full potential of our three banners, achieve a double-digit adjusted Ebitda margin and drive profitable and sustainable growth,” stated said Geoffroy van Raemdonck, Chief Executive Officer, Saks Global.
The official statement highlighted that key elements of the business plan, which assume growth and profitability fueled by a strong liquidity position, will be included in the company’s plan of reorganisation. This is expected to be filed with the US Bankruptcy Court for the Southern District of Texas within the next several weeks.
Since mid-January, the company has successfully executed on a number of strategic actions to prime Saks Global for long-term success, including sharpening focus on luxury and full-price selling, by streamlining Saks Global’s off-price business to 12 locations serving as a selling channel for residual inventory from Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
The company has streamlined the supply chain network, prioritising three go-forward distribution and service centre facilities in Texas, Pennsylvania and California, which have been significantly invested in over recent years, to support faster shipping, improve the customer experience and drive cost efficiencies.
