Key facts
- Saks Global has exited Chapter 11 bankruptcy after nearly five months.
- The company's debt has been reduced by approximately 75%.
- Saks Global will have about $700 million in liquidity upon emergence.
- The company aims for $9 billion in Gross Merchandise Value and double-digit adjusted EBITDA by FY30.
- Saks Global will operate under a new corporate name and a reduced store footprint.
Saks Global Enterprises LLC has secured court approval for its Plan of Reorganization, marking a significant step toward exiting Chapter 11 bankruptcy. The company anticipates emerging in the coming weeks with a substantially strengthened financial foundation, including a debt reduction of nearly 75% and approximately $700 million in liquidity. CEO Geoffroy van Raemdonck expressed confidence in the company's future, highlighting broad support from capital partners and stakeholders. The plan is designed to position Saks Global for profitable and sustainable growth, focusing on its core luxury retail business and enhancing its role as a gateway to the U.S. luxury consumer for brand partners. The company aims to achieve $9 billion in total Gross Merchandise Value and double-digit adjusted EBITDA by fiscal year 2030. CFO Brandy Richardson noted that substantial cost savings have already been achieved through optimization of the company's footprint, operations, and organization. Saks Global has focused on strengthening brand partner relationships, curating product assortments, and optimizing its store footprint and supply chain. A key strategic move involves streamlining the majority of the off-price business to prioritize luxury and full-price selling, aligning with a go-forward strategy that includes rightsizing the corporate team. Earlier in the process, Saks Global received approval for its Disclosure Statement, allowing it to solicit votes on its amended Plan of Reorganization. This milestone advanced the company toward confirmation and emergence, with the plan supported by capital partners and the Unsecured Creditors' Committee, which includes leading luxury brands.