Luxury retailer Saks Global announced Monday it has obtained access to an additional $300 million portion of its $1.75 billion bankruptcy financing arrangement, while also receiving endorsement from a bondholder group for its five-year recovery strategy.
The high-end retailer entered Chapter 11 bankruptcy proceedings in January, stating it required the financial resources to rebuild relationships with suppliers and gain additional time to restructure its outstanding obligations.
According to the company’s Monday announcement, this latest funding installment finalizes its “pre‑emergence financing package,” providing adequate cash flow to maintain day-to-day operations.
Major components of the bondholder-endorsed recovery strategy, which anticipates expansion and profit growth supported by strong cash reserves, will be incorporated into Saks Global’s reorganization proposal expected to be submitted to the U.S. Bankruptcy Court for the Southern District of Texas in the coming weeks.
During its bankruptcy proceedings, Saks Global has utilized the opportunity to close the majority of its budget-oriented retail locations. The company has shuttered 20 out of 33 Saks Fifth Avenue stores since entering Chapter 11 with $3.4 billion in outstanding debt.
The retailer reported improvements in its supply chain management, with nearly 600 brands resuming shipments and generating $1.4 billion in retail revenue.
“We have made significant progress over the past two months as we work to position Saks Global for the future, quickly stabilizing our business, improving inventory flow and investing in our transformation,” stated Geoffroy van Raemdonck, CEO of Saks Global.
