Overview
- The company is expected to seek Chapter 11 protection within days, after missing a more than $100 million interest payment on Dec. 30, according to multiple reports.
- Sources say leadership is in flux with Richard Baker expected to exit, with former Neiman Marcus chief Geoffroy van Raemdonck among names floated by industry sources.
- Competing debtor-in-possession proposals include a roughly $1.25 billion package led by bondholders Bracebridge and Pentwater, a reported $1.5 billion offer from PIMCO, and a WWD report citing $1 billion from Pentwater plus $250 million in asset-based lending.
- A reorganization is expected to shutter at least 20 Saks Fifth Avenue and Neiman Marcus stores, with reports suggesting as many as 50 Saks Off 5th locations could close, while New York flagships are seen as likely survivors.
- Vendors are believed to be owed about $800 million, many have paused shipments, and any court-approved plan may prioritize payments to “critical” brands with others receiving partial recoveries.