Saks Global will exit Chapter 11 bankruptcy after a U.S. court approved its restructuring plan. The move will cut nearly 75% of its debt and provide new funding for the luxury retailer.
The U.S. Bankruptcy Court for the Southern District of Texas confirmed the company’s Plan of Reorganization on June 5. This approval allows Saks to complete the process in the coming weeks. Most creditors supported the plan, the company stated.
Debt cut, liquidity boost
The restructuring will reduce Saks Global’s debt by about three-quarters and provide additional liquidity to support operations and future investments. The company aims to strengthen its financial position as it focuses on long-term growth.
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Chief financial officer Brandy Richardson said the reduced debt load and cost-saving measures position the business for future growth, adding, “We are grateful for the support of all of our stakeholders, including our capital partners and brand partners, and look forward to driving profitable growth as a stronger Saks Global.”
The company, which owns Neiman Marcus, Saks Fifth Avenue, Bergdorf Goodman, and Saks OFF 5TH, entered Chapter 11 earlier this year. Since then, it has taken steps to streamline operations, optimize its store footprint and supply chain network, and narrow its focus on full-price luxury retail. The retailer said it has streamlined parts of its off-price business and adjusted its corporate structure to align with its strategy. It also reported improved sales trends at its remaining stores, citing increased inventory and customer engagement.
Streamlined operations, ambitious targets
The company plans to generate $9 billion in gross merchandise value and achieve double-digit adjusted EBITDA by fiscal 2030.
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“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,” the company said. “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.”
Saks Global did not provide an exact timeline for exiting Chapter 11, but the process usually takes a few weeks after court approval. The company will keep operating normally during the transition.
