Overview
- Saks Global reached a restructuring support agreement Thursday with an ad hoc group of senior secured bondholders who committed $500 million in exit financing.
- The company says it will file a court plan of reorganization in the coming weeks and targets emergence from Chapter 11 this summer.
- Court-approved Chapter 11 financing unlocked over $1 billion to keep stores running, leading 650 brands to resume shipping $1.5 billion of goods and driving a 6% lift in spend per visit and an 11% gain in online conversion.
- The retailer is shrinking its footprint, with most Saks Off 5th locations and roughly 21 department stores slated to close, and news reports point to up to about 1,200 layoffs across more than a dozen sites.
- Early bankruptcy filings show operating cash-flow deficits of $109.6 million in late January and $369.4 million in February, with $467.8 million in cash at February’s end as inventory and sales trends improved.