Saks Global Enterprises has received approval of its plan of reorganization from the United States Bankruptcy Court for the Southern District of Texas, paving the way for it to exit Chapter 11 in the coming weeks with a strengthened financial foundation.
The plan enables Saks to reduce its debt by nearly 75%, the company stated, providing additional liquidity to support operations and future investments.
Saks said it expects the restructuring to position the company to accelerate sales growth, with a goal of generating $9 billion in gross merchandise value and double-digit adjusted EBITDA by fiscal 2030.
Saks asserted that, in bankruptcy, the company has made significant progress in establishing a basis to invest in the core areas of the business that support long-term growth, strengthening its partner relationships, optimizing its store footprint and supply chain network, and concentrating more closely on the core luxury business.
“Securing approval of our plan is an incredible achievement for Saks Global, and the broad-based support we have received from our capital partners, brand partners and other key stakeholders reflects confidence in our future,” said Geoffroy van Raemdonck, Saks CEO, in announcing the plan acceptance. “With our capital partners’ commitment and the dedication of our talented team, we are on track to emerge as a stronger, more focused company, poised for profitable and sustainable growth. I firmly believe in Saks Global’s enduring role as a leader in the luxury retail ecosystem, delivering exceptional experiences for customers and serving as the premier gateway to the U.S. luxury consumer for our brand partners. I am confident we are well positioned to define the future of luxury retail.”
