Overview
- Saks is expected to seek Chapter 11 protection as soon as Sunday, though plans remain in flux and a restructuring agreement is not yet in place.
- The company is negotiating a roughly $1.25 billion debtor-in-possession package, including about $1 billion in new money from key noteholders and roll-ups that could add roughly $250 million from asset-based lenders.
- Some noteholders are discussing a potential $500 million capital injection upon emergence, but those commitments are still under negotiation.
- Investor appetite for the financing has been limited, with would-be lenders skeptical about recovery prospects, increasing the risk of liquidation if the funding cannot be secured.
- Saks missed an interest payment of more than $100 million on Dec. 30 and has faced vendor payment delays, inventory gaps, declining sales, and talks with liquidators for certain stores.