Overview
- With a Dec. 30 interest payment due, some lenders have held confidential talks that included a potential debtor-in-possession loan.
- Management is evaluating emergency financing and possible asset sales, including a minority stake in Bergdorf Goodman, to bolster liquidity.
- A company spokesperson said Saks is exploring all potential paths with financial stakeholders to secure a stable future.
- Vendor disruptions have deepened as Hilldun paused approvals after missed payments, limiting shipments and pressuring sales.
- Debt stress is severe with senior secured bonds around 47 cents on the dollar and less secured debt below 9 cents, as S&P projected a roughly $500 million free cash flow deficit this year and warned of rapid liquidity depletion.