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Saks Global Files for Chapter 11, Secures $1.75 Billion and Installs Ex–Neiman Chief as CEO

The filing caps a debt-fueled Neiman Marcus acquisition that led to a missed $100 million interest payment.

Overview

  • The parent of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman sought Chapter 11 protection in the Southern District of Texas and said stores and e-commerce remain open.
  • The company announced about $1.75 billion in financing, including roughly $1 billion in debtor-in-possession funding from a bondholder group reported to include Pentwater and Bracebridge, plus a $240 million asset-backed facility and $500 million available upon emergence.
  • Former Neiman Marcus chief Geoffroy van Raemdonck was appointed CEO, replacing Richard Baker, and Darcy Penick was named president and chief commercial officer to help steer the restructuring.
  • Court filings estimate assets and liabilities at $1 billion to $10 billion and list major unsecured claims such as approximately $136 million to Chanel, about $60 million to Kering and $26 million to LVMH.
  • After vendor shipments slowed over unpaid bills, Saks Global said it will honor customer programs, continue payroll and benefits, make go-forward vendor payments and evaluate its operational footprint during the court process.