Saks Financing: Owner Races to Secure $1B

Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, is racing to secure over $1 billion in financing. The company is struggling to meet its financial obligations. It owes $100 million in interest to bondholders, which was due earlier this week.

Saks Financing Needed to Address Cash Flow Crisis

Saks Global’s liquidity crisis worsened this week. The company missed an interest payment on its $2.7 billion debt. This debt was incurred during its acquisition of Neiman Marcus a year ago. Saks also owes millions to vendors who have not been paid in full for more than a year.

The company is in talks with new and existing investors to secure a massive cash infusion. If these talks fail, Saks could seek debtor-in-possession financing through a Chapter 11 bankruptcy.

“The discussions will likely wrap up within a couple of weeks,” the source told The Post. “It’s not resolved yet.”

Saks Financing Efforts Amid CEO Marc Metrick’s Departure

In a major shake-up, Saks announced CEO Marc Metrick’s resignation. He had led the company for nearly a decade. Metrick’s departure comes amid the retailer’s financial troubles.

“After nearly three decades with Saks, I will be stepping down as chief executive officer,” Metrick said. “I am proud of what we accomplished.”

Richard Baker, Saks Global’s executive chairman, will succeed Metrick. Baker previously served as CEO before the Neiman Marcus acquisition.

Saks Seeks Financing to Avoid Bankruptcy and Continue Operations

Saks’ financial difficulties grew after the merger with Neiman Marcus. The timing coincided with a slump in luxury goods demand. Despite efforts to raise capital and restructure, Saks still needs more funds to avoid bankruptcy.

In June, Saks raised $600 million from bondholders. The company is also considering selling a minority stake in Bergdorf Goodman. Furthermore, Saks sold land beneath its Beverly Hills Neiman Marcus store to Ashkenazy Acquisition Corp. for a long-term lease agreement.