Overview
- The company missed an interest payment of more than $100 million due on Dec. 30 tied to bonds from the Neiman Marcus acquisition, entering a grace period, according to multiple reports.
- Saks is negotiating with creditors for fresh financing that could include debtor-in-possession funding if a Chapter 11 filing proceeds, news outlets report.
- The company announced Marc Metrick’s immediate departure and said Baker will serve as chief executive while continuing as executive chairman.
- Saks has been raising cash by monetizing real estate, including selling the land beneath Neiman Marcus locations in Beverly Hills and San Francisco while retaining long-term store leases.
- Operational pressures include a 13% year-over-year revenue decline to $1.6 billion in the quarter ended Aug. 2, delayed vendor payments, merchandising shortages, layoffs, and a 2025 debt restructuring that injected about $600 million.