Saks Global plans to exit Chapter 11 this summer after securing a $500 million funding from its capital partners.
The company announced last week it had entered into a restructuring support agreement with an ad hoc group of its senior secured bondholders regarding $500 million in exit financing.
The company said it will be well-positioned to drive profitability upon its expected emergence this summer, citing a right-sized capital structure and sufficient liquidity to invest in key areas, as well as an optimized store footprint of the best-performing locations.
“Achieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners’ confidence in our go-forward vision, guided by our relentless devotion to the luxury customer,” said Geoffroy van Raemdonck, CEO of Saks Global.
“As 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.”
Saks added that it has made significant progress since filing for Chapter 11 in January, with more than 650 brands resuming shipping merchandise and releasing $1.5 billion in retail receipts
The company’s inventory receipts have improved over the period, with March inventory receipts up 18 per cent year-over-year.
The retailer has also seen improvements in customer engagement, as demonstrated by a 6 per cent increase in customer spend per store visit, an 11 per cent growth in online conversion, and improved full-price selling across luxury retail banners.
