David Moin

Fri, Jun 27, 2025, 12:00 PM4 min read

Saks Global has bolstered its finances, securing $600 million in financing commitments from a majority of its existing bondholders, the luxury retailer said Friday.

The new financing should help ease concerns among bondholders and vendors that Saks Global would not have the wherewithal to sustain its operations — although the company is working with a $4 billion debt load as it seeks to push through a major reset in its business model. Saks Global includes the Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th stores and e-commerce businesses. For the year ended Feb. 1, Saks said revenues totaled $3.8 billion. That included about $432 million in sales from Neiman Marcus Group, which was acquired on Dec. 23. Incorporating Neiman’s business for the whole year, sales fell 10 percent to $7.3 billion.

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Saks has a $120 million interest payment due on Monday on its senior secured bonds — the first interest payment on the $2.2 billion in bonds issued just before Saks bought Neiman Marcus Group in December at a $2.7 billion enterprise value.

The transaction detailed on Friday includes a $400 million first-in, last-out (FILO) asset-based credit facility, with $300 million funded right away and an additional $100 million to be funded upon completion of a bond exchange. A FILO loan is added to an existing debt structure, where the new lender gets repaid first, even though they provided money after the others. It’s considered a quick, efficient way to build incremental liquidity into a business. The transaction also includes $200 million in additional commitments subject to certain conditions. A majority of bondholders have committed to participate in the exchange, which will launch shortly.

Marc Metrick, chief executive officer of Saks Global, said in a statement: “Today’s announcement reflects the outcome of productive engagement with our bondholders and their continued confidence in our business and strategic direction. This comprehensive financing package meaningfully enhances our liquidity and strengthens our balance sheet. Coupled with the early realization of synergies and improving inventory position, we are primed to execute on our transformation strategy, invest in key growth initiatives, and reinforce our leadership as the world’s largest multi-brand luxury retailer.”