Saks Global inches closer to emerging from bankruptcy
Saks Global has passed another key milestone in its path toward exiting from bankruptcy protection.
The U.S. Bankruptcy Court for the Southern District of Texas has approved the luxury retailer’s bankruptcy disclosure statement. The approval opens the door for creditor voting on the company’s reorganization plan, with Saks Global planning to exit bankruptcy this summer.
The amended plan has the backing of the company’s capital partners and the Unsecured Creditors’ Committee.
“Today's significant step forward demonstrates our continued momentum toward emergence this summer with a strong foundation for long-term growth,” said Geoffroy van Raemdonck, CEO of Saks Global. “We have made remarkable progress over the past three and a half months, and I am grateful for the dedication and focus of our talented teams. We appreciate the confidence in our plan by key financial stakeholders and look forward to garnering additional support.”
According to its plan, Saks Global anticipates exiting bankruptcy with nearly $700 million of liquidity, which it expects to increase over time as it drives “continued momentum and positive cash flow.” The plan also includes steps to deliver double-digit adjusted EBITDA by fiscal year 2030 to drive long-term value.
The company said it continues to meet all of the required milestones in the Chapter 11 process as it moves toward emergence, including having executed a restructuring support agreement under which its capital partners committed to provide $500 million in exit financing.
[READ MORE: Saks Global enters $500M restructuring agreement]
"The committed capital we have secured, along with the growing momentum across our business, sets the stage for a successful future,” said van Raemdonck. “With adequate resources to invest in our capabilities, customer experience and merchandise assortment, we are confident in our ability to drive profitable growth for Saks Global and sustained revenue growth for our partners in the years ahead.”
Saks Global's portfolio includes Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and Saks Off 5th.
