Exclusive | Saks owner races to raise $1B in…
The owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman is in a race to land more than $1 billion in rescue financing from new and present traders – even as the company announced its CEO is stepping down, The Post has realized.
The luxurious giant wants a money infusion to repay a slew of money owed that embrace a $100 million curiosity fee to bondholders that got here due earlier this week. The company also owes thousands and thousands to distributors, many of whom haven’t been paid in full for more than a yr.
Saks is now in discussions with traders for a large money injection to stave off a attainable chapter submitting, a source with data of the state of affairs told The Post. If those talks fail, the capital might take the shape of debtor-in-possession financing in a Chapter 11 reorganization, the source said.
Marc Metrick stepped down as CEO of Saks Global. WWD via Getty Images
“The discussions will likely wrap up within a couple of weeks,” this source said. “It’s not resolved yet.”
Reports of a attainable chapter ramped up this week after the posh retailer missed an curiosity fee to bondholders on Tuesday for the $2.7 billion it borrowed to purchase Neiman Marcus a yr in the past.
Saks Global seems to have purchased itself a 30-day grace period for the curiosity fee, according to RetailStat, which offers credit data and analysis on retailers.
Meanwhile, Saks Global announced on Friday that CEO Marc Metrick is stepping down after a decade at the helm.
Executive chairman, Richard Baker, succeeded Metrick as CEO. Saks Global
“After nearly three decades with Saks, I will be stepping down as chief executive officer,” Metrick said in a assertion. “From building a world-class team to establishing Saks.com as a leading luxury e-commerce platform, I am proud of what we accomplished.”
He is succeeded by the company’s government chairman, Richard Baker, a real estate mogul who was beforehand CEO before the Neiman Marcus acquisition.
The company said Metrick, who led Saks Fifth Avenue since 2015, is leaving to “pursue new opportunities.”
Saks Global’s revenues, which embrace Bergdorf Goodman and Saks Off fifth, dropped 13% in the company’s most latest quarter, which ended Aug. 2.
Saks Global has huge real estate holdings, which it has begun to leverage to raise capital. Bloomberg via Getty Images
In May, the company closed a Saks Fifth Avenue store in San Francisco. This week, it offered the land beneath its Beverly Hills Neiman Marcus store to Ashkenazy Acquisition Corp. for an undisclosed quantity. The store now has a long-term lease with the New York-based Ashkenazy.
In June, Saks Global said it raised $600 million in recent capital from bondholders. It has also sought to promote a minority stake in Bergdorf to raise more funds.
The merger with Nieman Marcus coincided with a stoop in demand for luxurious items.
Saks Fifth Avenue fell behind on its funds to distributors. DW labs Incorporated – stock.adobe.com
There have been a number of rounds of layoffs this yr at the company, which operates more than 70 malls and is the biggest luxurious retailer in the world.
“Marc has been a valued leader at Saks for many years, helping to drive significant transformation and growth while solidifying the company’s enduring position in luxury,” Baker said in assertion. “We thank Marc for his leadership and dedication and wish him continued success in his next chapter.”
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