Saks Global Secures $500 Million in Exit Financing and Plans to Emerge From Chapter 11

Saks Global Enterprises LLC, the largest multi brand luxury retailer in the world, comprising Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks OFF 5TH, has entered into a Restructuring Support Agreement with an ad hoc group of its senior secured bondholders, who have committed to provide $500 million in exit financing upon the company’s emergence from Chapter 11. The company anticipates filing a Plan of Reorganization in the coming weeks and expects to emerge from bankruptcy this summer, targeting a right sized capital structure with a double digit adjusted EBITDA margin as its post emergence financial anchor.

Brand Partners Are Coming Back

The most significant operational signal in the filing is the pace at which brand partners have resumed shipping merchandise to Saks Global‘s banners since the Chapter 11 filing. More than 650 brands have resumed shipping, releasing $1.5 billion in retail receipts and accounting for more than 90%…