Saks Global Gains Court Approval for Plan of Reorganization

Saks Global Enterprises received approval of its Plan of Reorganization (the Plan) from the U.S. Bankruptcy Court for the Southern District of Texas. 

The Plan gained support across the capital structure from participating creditors, the overwhelming majority of whom voted in favor. 

Confirmation of the Plan paves the way for Saks Global to exit Chapter 11 in the coming weeks with a strengthened financial foundation.

At emergence, Saks Global’s debt will be reduced by nearly 75%, and Saks Global will have the liquidity necessary to support its operations and invest in its future. 

The Plan establishes the foundation for the company to accelerate sales growth, with a focus on strong full-price selling, and to generate $9 billion in total Gross Merchandise Value and double-digit adjusted EBITDA by fiscal year 2030.

Geoffroy van Raemdonck, Chief Executive Officer, Saks Global, commented,

“Securing approval of our Plan is an incredible achievement for Saks Global, and the broad-based support we have received from our capital partners, brand partners and other key stakeholders reflects confidence in our future. With our capital partners’ commitment and the dedication of our talented team, we are on track to emerge as a stronger, more focused company, poised for profitable and sustainable growth. I firmly believe in Saks Global’s enduring role as a leader in the luxury retail ecosystem, delivering exceptional experiences for customers and serving as the premier gateway to the U.S. luxury consumer for our brand partners. I am confident we are well positioned to define the future of luxury retail.”

In less than five months, Saks Global has made significant progress evolving its business to support a more sustainable future, including:

• Establishing a strong financial foundation, with an improved capital structure and the liquidity necessary to invest in the core areas of the business to support long-term growth.
• Strengthening its valued brand partner relationships, facilitating delivery of an expertly curated product assortment, and providing access to the Company’s loyal customers across the U.S.
• Optimizing its store footprint and supply chain network to support its integrated retail model, which Saks Global’s best-performing stores anchor in markets with a high concentration of luxury customers, as well as distinct e-commerce platforms and remote selling services.
• Focusing on its core luxury business, by streamlining the majority of Saks Global’s off-price business to prioritize luxury and full-price selling, and right-sizing the Company’s corporate team to align with this go-forward strategy.

Brandy Richardson, Chief Financial Officer, Saks Global, added, 

“With significantly reduced debt on the Company’s balance sheet at emergence and having already achieved substantial cost savings through the optimization of our footprint, operations and organization, our business is well positioned for future success. We are grateful for the support of all of our stakeholders, including our capital partners and brand partners, and look forward to driving profitable growth as a stronger Saks Global, leveraging our distinct and differentiated assets.”

Saks Global’s actions are translating into sustained momentum across numerous areas of the business. Saks Global’s go-forward store sales continue to show steady improvement, reflecting stronger customer engagement as a result of increased inventory.