Saks Global is one step closer to exiting bankruptcy. The company announced on Wednesday that it has entered into a Restructuring Support Agreement with bondholders who will provide $500 million in exit financing when Saks completes the Chapter 11 process. The company expects this to take place this summer.
Today, Saks also outlined how it will drive profitability upon its exit from bankruptcy this summer, including via a stable financial foundation (propped up by the $500 million); an optimized store footprint; a curated product assortment; personalization for luxury consumers; and a strong employee base. Though industry insiders have speculated about whether the company plans to sell Bergdorf Goodman, there was no mention of a sale.
“Achieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners’ confidence in our go-forward vision, guided by our relentless devotion to the luxury customer,” CEO Geoffroy van Raemdonck said in a statement. “As we advance the restructuring process and position Saks Global for the future, our focus remains on strengthening our brand partner relationships, and delivering an expertly curated product assortment and personalized service for our luxury customers across Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
Since declaring bankruptcy — and announcing van Raemdonck as CEO — in January, Saks has begun to make changes to facilitate its path back to solvency, utilizing the $1.75 billion in financing the company announced at the time. Also on March 16, Saks said it had tapped an additional $300 million of the package in order to attain enough liquidity to operate. On February 10, Saks Global announced the closure of eight Saks Fifth Avenue stores and one Neiman Marcus. And on March 6, the company announced that it was closing 12 additional Saks locations and three Neiman Marcus stores. On March 27, Saks walked back the closure of three stores (two Saks locations and one Neiman Marcus).
Earlier in March, Saks also confirmed that it had been focusing on its relationships with brand partners, and said that it had reached or nearly reached agreements with over 175 brands across categories, from large maisons to smaller brands. Last month, the four global fashion councils called on Saks to factor the fates of small industry players in its restructuring plans. Today’s update didn’t include any mention of independent designers.
Saks emphasized its progress since filing for bankruptcy in January. As of April 2, more than 650 brands have resumed shipping merchandise, releasing $1.5 billion in retail receipts, which accounts for more than 90% of the retailer’s expected inventory for the first quarter of fiscal 2026, ending on May 2, according to the company. March inventory receipts are also up 18% year-over-year.
“In a short period of time, we’ve taken decisive actions and made meaningful progress in stabilizing the business and strengthening our relationships with brand partners,” van Raemdonck added. “While it will take time to fully realize the benefits of this progress, our sales and inventory results continue to outperform our internal plans. This, along with the committed capital we have secured, provides us with sufficient liquidity to complete a successful restructuring and advance our ongoing transformation to ensure a strong future for Saks Global.”
Correction: Updated to reflect that Saks Global is now closing 10 Saks locations and two Neiman Marcus stores. Also updated to reflect the company’s $1.75 billion in financing, not $1.7 billion as previously reported.
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