Exclusive | Saks owner races to raise $1B in financing as CEO steps down, possible bankruptcy looms: sources
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 existing investors – even as the company announced its CEO is stepping down, The Post has learned. The luxury giant needs a cash infusion to pay off a slew of debts that include a $100 million interest payment to bondholders that came due earlier this week.The company also owes millions to vendors, many of whom have not been paid in full for more than a year.Saks is now in discussions with investors for a massive cash injection to stave off a possible bankruptcy filing, a source with knowledge of the situation told The Post.
If those talks fail, the capital could take the form of debtor-in-possession financing in a Chapter 11 reorganization, the source said.“The discussions will likely wrap up within a couple of weeks,” this source said.“It’s not resolved yet.” Reports of a possible bankruptcy ramped up this week after the luxury retailer missed an interest payment to bondholders on Tuesday for the $2.7 billion it borrowed to acquire Neiman Marcus a year ago.Saks Global appears to have bought itself a 30-day grace period for the interest payment, according to RetailStat, which provides 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.“After nearly three decades with Saks, I will be stepping down as chief executive officer,” Metrick said in a statement.
“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 executive chairman, Richard Baker, a real estate mogul who was previously CEO before the Neiman Marcus acquisition.Morning Report delivers the latest news, videos, photos and more.
Please provide a valid email.By clicking above you agree to the Terms ...