Saks Global is preparing to leave Chapter 11 this summer after reaching an agreement with a group of senior secured bondholders for $500m in exit financing.
The retailer said it has entered into a restructuring support agreement with an ad hoc group of those bondholders, with the new funding intended to support the business as it transitions out of bankruptcy protection.
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The company added that the commitment forms part of a broader $1.7bn debtor-in-possession financing package put in place to maintain operations during the restructuring.
Saks Global, owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, said the latest agreement is intended to provide suppliers with greater confidence around payment for merchandise delivered to its luxury department stores.
The company filed for bankruptcy protection on 14 January and has since implemented operational changes, including closing underperforming locations.
Following emergence, the retailer said it plans to operate with a “right-sized capital structure” and sufficient liquidity, supported by a streamlined store footprint, separate e-commerce platforms and closer relationships with luxury brand partners.
Saks Global CEO Geoffroy van Raemdonck said: “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 personalised service for our luxury customers across Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
Saks Global also reported progress with vendors, saying more than 650 suppliers that had paused shipments have resumed deliveries since the filing.
It said those shipments represent more than $1.5bn in retail receipts and account for over 90% of the inventory expected for the first quarter of fiscal 2026, which ends 2 May.
Inventory receipts in March were reported to be 18% higher than the same month a year earlier.
The retailer linked the improvement in stock availability to stronger customer activity, citing a 6% rise in spend per store visit and an 11% increase in online conversion rates year-on-year.
It also said full-price selling performance improved across its luxury banners.
Saks Global said it continues talks with financial stakeholders on a Plan of Reorganisation and expects to file the plan in the coming weeks.
