As it moves through the court-supervised bankruptcy process, Saks Global stated it has access to an initial tranche of $500 million of $1.75 billion in committed capital, which the company asserts will provide sufficient liquidity to support operations and transformation initiatives across its store portfolio.
The announcement comes after Amazon filed in objection to part of the Saks financing package.
The $500 million in funding will facilitate go-forward payments to brand partners and the acceleration of inventory flow, Saks pointed out. Under former Neiman Marcus leader and newly appointed Saks Global CEO Geoffroy van Raemdonck, Saks Global intends to establish a renewed focus on expertly curated assortments, trusted relationships with brand partners and a commitment to loyal customers, the company maintained.
The funding news follows Saks’ first-day hearing in the United States Bankruptcy Court for the Southern District of Texas, which ended with orders facilitating continued operations in the ordinary course, including maintenance of payroll and benefits as usual and fulfillment of go-forward obligations to partners and vendors. The financing enables the company’s store portfolio, one that includes Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks Off 5th, Last Call and Horchow, to continue operating in the normal course and supporting all customer programs and policies including credit cards, gift cards and loyalty programs.
“Access to this significant capital is instrumental as we work to strengthen our financial foundation and best position Saks Global for the future,” van Raemdonck said. “Our stores and e-commerce experiences are open and focused on delivering exceptional products, elevated luxury experiences and highly personalized service to our customers. Saks Global continues to play a distinct and enduring role in the luxury retail industry and, through this process, we will have the opportunity to build a more resilient company, primed for lasting financial and operational stability. Our employees, brand partners, customers and vendors remain at the heart of everything we do, and we thank them for their ongoing support.”
