Saks Global files for Chapter 11 after securing $1.75bn financing

US-based luxury retailer Saks Global has secured $1.75bn successful committed superior and filed for voluntary Chapter 11 extortion arsenic portion of a fiscal restructuring.

The institution commenced proceedings successful the US Bankruptcy Court for the Southern District of Texas, outlining plans to stabilise its finances portion pursuing an operational transformation.

The financing bundle consists of a $1.5bn committedness from an advertisement hoc radical of elder secured bondholders, unneurotic with $240m of incremental liquidity provided by asset-based lenders.

Subject to tribunal approval, $1bn volition beryllium made disposable arsenic debtor-in-possession financing to money operations during the Chapter 11 process.

An further $500m from the bondholder radical is expected to go disposable erstwhile the institution emerges from bankruptcy, which is anticipated aboriginal this year.

Saks Global said the transaction is aimed astatine strengthening its equilibrium expanse and maintaining liquidity arsenic it reassesses its operational footprint, with concern to beryllium directed towards areas offering the strongest semipermanent potential.

As portion of the filing, the institution has submitted respective customary first-day motions seeking support to proceed concern arsenic usual.

These see requests to honour lawsuit programmes, marque ongoing payments to vendors, and support worker payroll and benefits.

Saks Global said that stores and e-commerce operations crossed Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow volition stay unfastened passim the restructuring process.

Alongside the Chapter 11 filing, the radical announced changes to its elder enactment team.

Geoffroy van Raemdonck has been appointed CEO with contiguous effect, succeeding Richard Baker, who became CEO earlier this period and has stepped down arsenic enforcement president and CEO.

Van Raemdonck antecedently served arsenic CEO of the Neiman Marcus Group earlier its acquisition by Saks Global successful 2024.

He volition enactment alongside CFO Brandy Richardson, who besides antecedently held the CFO relation astatine the Neiman Marcus Group.

The enactment squad is being expanded further with the assignment of Darcy Penick arsenic president and main commercialized officer, overseeing stores, marketing, buying, digital, analytics and lawsuit care.

Lana Todorovich has besides been named main of planetary marque partnerships, liable for managing enterprise-level relationships with marque partners.

Commenting connected the appointment, van Raemdonck said: “This is simply a defining infinitesimal for Saks Global, and the way up presents a meaningful accidental to fortify the instauration of our concern and presumption it for the future.