Saks Global seeks $1bn loan as CEO role changes hands
Saks Global is in discussions to arrange as much as $1bn in financing to support day-to-day operations as it prepares for a potential Chapter 11 bankruptcy filing, citing sources, Bloomberg reported.
In a separate development, the company also confirmed a change at the top of the organisation.
The US luxury retailer recently failed to make an interest payment of more than $100m to bondholders that was due on 30 December 2025.
It is now negotiating a forbearance agreement with certain creditors, a step that could give the company more time to secure fresh funding or put together a reorganisation plan, according to the sources.
Bondholders have been considering a debtor-in-possession (DIP) financing package that may involve at least $750m in new capital.
The proposal could also include a roll-up of existing debt, a structure designed to allow the business to continue operating once a bankruptcy filing is made.
However, the sources cautioned that the terms of any financing are still being negotiated and may change.
The news agency reported that Saks has been under increasing pressure due to inventory problems and strained cash flow.
These challenges intensified roughly a year after the company raised billions of dollars from bond investors to finance a turnaround plan that included the acquisition of Neiman Marcus.
In June, creditors agreed to provide several hundred million dollars in additional support through a debt restructuring.
That deal reshaped repayment priorities and introduced multiple layers of claims against the retailer’s assets.
Despite this intervention, Saks has continued to struggle with muted sales and constrained inventory levels.
Earlier this month, Marc Metrick stepped down as CEO and executive chairman Richard Baker has assumed the role while retaining his existing position.
The company said the leadership transition follows Metrick’s decision to explore new opportunities, with Baker assuming responsibility for overseeing Saks Global’s luxury retail operations going forward.
Commenting on the appointment, Baker said: “I look forward to continuing to work with our highly experienced management team, valued partners, and other stakeholders to secure a strong and stable future for our company.
“Across Saks Global, with our deep industry expertise, well-established relationships within the luxury sector, and talented employees, we will strengthen our position so that we can capitalise on the many opportunities we see for our company in the luxury market.”
“Saks Global seeks $1bn loan as CEO role changes hands” was originally created and published by Retail Insight Network, a GlobalData owned brand.
