The Tamesis
Saks Global is one step closer to emerging from bankruptcy. The company announced Wednesday that it has entered into a restructuring support agreement with bondholders that will provide $500 million in exit financing when Saks completes its Chapter 11 process. The company expects this to happen this summer.
Today, Saks also outlined how it will improve profitability after emerging from bankruptcy this summer, including through a stable financial foundation (underpinned by $500 million); optimized store floor space; curated product assortments; personalized service for luxury consumers; and a strong employee base. There has been no mention of a sale, although industry insiders have speculated whether the company plans to sell Bergdorf Goodman.
“Achieving this important milestone highlights the progress we have made in our transformation and reflects the confidence of our capital partners in our vision for the future and our ongoing dedication to our luxury customers,” CEO Geoffroy van Raemdonck said in a statement. “As we advance our restructuring process and position Saks Global for the future, our focus remains on strengthening our brand partnerships and serving Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. of luxury customers with carefully curated product portfolios and personalized services.”
Since declaring bankruptcy in January and announcing van Raemdonck as CEO, Saks has begun making changes, using the $1.7 billion in financing the company announced at the time to boost its return to solvency. Also on March 16, Saks said it had used an additional $300 million in the program to obtain sufficient liquidity to operate. On February 10, Saks Global announced the closure of eight Saks Fifth Avenue stores and one Neiman Marcus store. On March 6, the company announced it would close 12 more Saks stores and three Neiman Marcus stores.
In early March, Saks also confirmed that it has been focusing on its relationships with brand partners, saying it has inked or is close to deals with more than 175 brands across categories, from large to small brands. Last month, four major global fashion councils called on Saks to consider the fate of smaller industry players in its restructuring plan. Today’s update doesn’t mention any independent designers.
Saks highlighted the progress it has made since filing for bankruptcy in January. The company said that as of April 2, more than 650 brands had resumed shipments, unlocking $1.5 billion in retail revenue and accounting for more than 90% of the retailer’s expected inventory for the first quarter of fiscal 2026, which ended on May 2. Inventory revenue also increased 18% year-on-year in March.
“In a very short period of time, we have taken decisive action and made meaningful progress in stabilizing the business and strengthening relationships with our brand partners,” added van Remdonk. “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.”
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