THE WHAT? Saks Global has received court approval for its Plan of Reorganization, clearing the way for the luxury retailer to emerge from Chapter 11 bankruptcy protection with a significantly reduced debt burden and a renewed focus on long-term growth.
THE DETAILS The U.S. Bankruptcy Court for the Southern District of Texas approved the company’s restructuring plan, which received overwhelming support from participating creditors. Upon emergence, Saks Global expects to reduce its debt by nearly 75% while securing the liquidity needed to support operations and future investments. The company aims to generate US$9 billion in gross merchandise value and achieve double-digit adjusted EBITDA by fiscal 2030. Since entering Chapter 11 less than five months ago, Saks Global has streamlined its operations, optimised its store footprint and supply chain network, strengthened relationships with brand partners, and refocused its business on luxury and full-price retailing. The retailer also reported improving sales trends at its continuing stores, supported by stronger inventory levels and customer engagement.
THE WHY? The restructuring is designed to create a stronger financial foundation, improve profitability and position Saks Global to compete more effectively in the luxury retail market by focusing on its core premium and luxury customer base.
Source: PR Newswire
