Saks Global’s financing push highlights how debt-laden retailers use debtor-in-possession funding to maintain operations while reorganizing under bankruptcy protection.(BizTrendWire Insight)
Source: Reuters (via feed)
Saks Global, the luxury retail group behind Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus, is nearing a $1.75 billion financing plan as it prepares for a Chapter 11 bankruptcy filing, sources said.
The planned financing includes a $1 billion debtor-in-possession loan led by investment groups including Pentwater Capital Management and Bracebridge Capital.
In addition, banks are expected to provide about $250 million in asset-backed financing.
The investor group could also offer $500 million in financing once Sachs Global successfully exits bankruptcy protection, the sources said.
These funds are intended to help the retailer keep its stores open, pay vendors, maintain staff and restock inventory during reorganization.
Saks Global has been struggling with debt since its 2024 acquisition of Neiman Marcus for about $2.65 billion, which left it burdened with heavy interest costs.
The discussions over financing are ongoing.
Sources cautioned the terms could change and that the plan still needs approval from a bankruptcy judge.
If finalized, the plan would provide liquidity as the company files for Chapter 11 “imminently”, the sources added.
