Saks Global set to exit bankruptcy this summer with $500M in financing

Saks Global said it reached a restructuring support agreement with some secured bondholders who have pledged $500 million, and the company expects to exit bankruptcy this summer.

Saks Global said it is poised to exit bankruptcy protection this summer after securing a restructuring support agreement with some of its secured bondholders. The bondholders have pledged $500 million in financing to help operate the company's luxury stores. The company filed for bankruptcy protection on Jan. 14 and has since focused on shedding unprofitable locations and reducing costs. Those actions have included job cuts and multiple store closures across its Saks Fifth Avenue, Saks Off 5th and Neiman Marcus brands. Key facts: - The company said secured bondholders have pledged $500 million under a "restructuring support agreement." - That $500 million is expected to come on top of $1.7 billion in debtor-in-possession financing already secured to keep stores operating. - Saks Global accrued more than $4 billion in debt after acquiring Neiman Marcus in 2024 for $2.7 billion, the company reported. - About 650 vendors who paused shipments after the bankruptcy filing have resumed doing business with the company, according to Saks. - The company has cut about 1,200 jobs and expects to keep 32 luxury stores open while closing numerous Saks Fifth Avenue and Saks Off 5th locations and four Neiman Marcus branches. - Saks reported nearly $336 million in merchandise sales in February but a $77 million loss after expenses, and a full restructuring plan is expected to be filed by April 24. Summary: The pledged $500 million represents a financing milestone as Saks Global moves toward exiting bankruptcy this summer and aims to stabilize operations. The company remains in an active restructuring process that includes store reductions, cost cuts and the planned filing of a comprehensive restructuring plan by April 24.