Overview

• In June, Saks Global secured a $600 million bondholder financing package to replace a $350 million bridge loan and shore up liquidity.
• The company settled its first $120 million bond interest payment and began honoring $275 million in overdue vendor invoices under new 90-day terms.
• Sales at Saks Fifth Avenue dropped 16% in the quarter ended June and plunged 28% in June alone, while combined sales at Neiman Marcus and Bergdorf Goodman fell 10% in Q2 and 26% in June as Bloomingdale’s and Nordstrom posted double-digit gains.
• Vendors had withheld inventory after prolonged nonpayment, prompting the retailer to overhaul payment schedules and rebuild supplier relations.
• Executives are pursuing $600 million in cost synergies over five years, have initiated layoffs and are focusing on tighter inventory management and digital expansion to arrest the sales decline.