Saks Global Enterprises, the parent company of the luxury stores Saks Fifth Avenue, Neiman Marcus, is expected to exit bankruptcy after entering into a restructuring agreement with capital partners who pledged $500 million in financing once the company emerges.
Saks Global Enterprises filed for Chapter 11 bankruptcy protection in January after missing a $100 million interest payment in December due to a debt of $3.4 million, which stemmed from its prior $2.7 billion purchase of Neiman Marcus, but appears to soon be exiting bankruptcy amid its ongoing restructuring.
“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,” said Geoffroy van Raemdonck, CEO of Saks Global, via FOX Business.
“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,” van Raemdonck added.
Saks Global announced plans to close 15 more stores amid its $1 billion bankruptcy last month. The company said it planned to close 12 Saks Fifth Avenue stores and three Neiman Marcus stores located in Chicago, Las Vegas, San Antonio and Tysons, Virginia, while 13 Saks Fifth Avenue and 32 Neiman Marcus stores would remain in operation.
Saks officially filed for Chapter 11 bankruptcy in the Southern District of Texas on January 13 following months of speculation. The filing states that the company owes millions to several of the biggest names in luxury fashion including $136 million to Chanel; $59 million to Kering, the parent company of Gucci; and $33 million to Capri Holdings, the parent company of Michael Kors.
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