Saks Global seeks $1bn loan as CEO role changes hands

Saks Global is successful discussions to put arsenic overmuch arsenic $1bn successful financing to enactment day-to-day operations arsenic it prepares for a imaginable Chapter 11 bankruptcy filing, citing sources, Bloomberg reported.

In a abstracted development, the institution besides confirmed a alteration astatine the apical of the organisation.

The US luxury retailer precocious failed to marque an involvement outgo of much than $100m to bondholders that was owed connected 30 December 2025.

It is present negotiating a forbearance statement with definite creditors, a measurement that could springiness the institution much clip to unafraid caller backing oregon enactment unneurotic a reorganisation plan, according to the sources.

Bondholders person been considering a debtor-in-possession (DIP) financing bundle that whitethorn impact astatine slightest $750m successful caller capital.

The connection could besides see a roll-up of existing debt, a operation designed to let the concern to proceed operating erstwhile a bankruptcy filing is made.

However, the sources cautioned that the presumption of immoderate financing are inactive being negotiated and whitethorn change.

The quality bureau reported that Saks has been nether expanding unit owed to inventory problems and strained currency flow.

These challenges intensified astir a twelvemonth aft the institution raised billions of dollars from enslaved investors to concern a turnaround program that included the acquisition of Neiman Marcus.

In June, creditors agreed to supply respective 100 cardinal dollars successful further enactment done a indebtedness restructuring.

That woody reshaped repayment priorities and introduced aggregate layers of claims against the retailer’s assets.

Despite this intervention, Saks has continued to conflict with muted income and constrained inventory levels.

Earlier this month, Marc Metrick stepped down arsenic CEO and enforcement president Richard Baker has assumed the relation portion retaining his existing position.

The institution said the enactment modulation follows Metrick’s determination to research caller opportunities, with Baker assuming work for overseeing Saks Global’s luxury retail operations going forward.

Commenting connected the appointment, Baker said: “I look guardant to continuing to enactment with our highly experienced absorption team, valued partners, and different stakeholders to unafraid a beardown and unchangeable aboriginal for our company.

“Across Saks Global, with our heavy manufacture expertise, well-established relationships wrong the luxury sector, and talented employees, we volition fortify our presumption truthful that we tin capitalise connected the galore opportunities we spot for our institution successful the luxury market.”

"Saks Global seeks $1bn indebtedness arsenic CEO relation changes hands" was primitively created and published by Retail Insight Network, a GlobalData owned brand.