Saks Global Rescues Itself with Crucial $600 Million Debt Restructuring
New York, dinsdag, 1 juli 2025.
In a complex financial restructuring, Saks Global Enterprises has secured a lifesaving $600 million deal. A group of investors is providing an immediate loan of $300 million, forcing other creditors to accept a lower repayment position. The agreement, which prevents bankruptcy, includes strict conditions limiting new debt issuance and protecting payment priorities. This strategic move demonstrates Saks’ resilience in a challenging retail market, addressing its liquidity problems while safeguarding the interests of its key investors.
Financial Restructuring
Saks Global Enterprises has reached a crucial financial agreement whereby existing investors are providing a debt extension of $600 million [1][2]. A group holding a slight majority of the $2.2 billion in 11% bonds has agreed to immediately lend Saks $300 million [3]. This debt would be among the first to be repaid in the event of the company’s bankruptcy [4].
Credit Terms
The new bonds contain stricter creditor protection measures, including restrictions on establishing new subsidiaries with debt [5]. Investors not participating in the agreement risk a lower position in the repayment order and may lose protection covenants [6].
Business Context
Saks Global, which includes Neiman Marcus, Bergdorf Goodman, and Saks Fifth Avenue, acquired Neiman Marcus in December for $2.7 billion [7]. The company has recently also reduced its workforce by 3%, amounting to 550 job cuts [8].