Saks Global on Friday moved closer to exiting bankruptcy — with liquidity of nearly $700 million — as a judge in the U.S. Bankruptcy Court for the Southern District of Texas approved a key step in its reorganization plan.
The conglomerate, formed in late 2024 in a $2.7 billion deal that almost immediately ran into financial trouble, expects to emerge around June 22 with about $1.2 billion in debt, including a term loan of about $750 million plus a $347 million ABL facility.
Saks Global has lofty goals for its post-bankruptcy era. In a press release and filings last week, the company said that by fiscal year 2030, it expects to generate $9 billion in total gross merchandise value — close to doubling compared to 2026 — and reach double-digit adjusted EBITDA.
The expectation is that revenue will grow about 5.5% from fiscal 2029 to 2030, with revenue nearing $7.2 billion that year; revenue for fiscal year 2026 will reach about $5.3 billion (including the bankruptcy months of February through May). The projections reflect a compound annual growth rate of roughly 7% between fiscal years 2027 and 2030. The company will report a net loss of $135 million for fiscal year 2026 and also expects to eventually swing into the black in fiscal year 2029, with a projected $99 million in net income.
To achieve that, of course, Saks Global will have to have repaired more of its vendor relationships. Sales tanked last year, largely due to inadequate inventory following suppliers’ refusal to ship merchandise without payment. Since filing for bankruptcy, the company has reported steady progress on that front, and in court filings Friday, Saks Global said that nearly 720 brands have resumed shipping, releasing $1.6 billion in retail receipts.
In a statement Friday, Saks Global CEO Geoffroy van Raemdonck, who took the job in January after the filing, said the company is already now “a stronger partner to our brand partners and other key stakeholders.”
“The committed capital we have secured, along with the growing momentum across our business, sets the stage for a successful future,” he said. “With adequate resources to invest in our capabilities, customer experience and merchandise assortment, we are confident in our ability to drive profitable growth for Saks Global and sustained revenue growth for our partners in the years ahead."
Some creditors have yet to agree to the plan, though Saks Global said Friday that it expects them to. Otherwise, the committee of unsecured creditors established as part of the bankruptcy and its capital partners have agreed to the plan, based on an “agreed framework reached by the parties that resolves all outstanding items among them.”
The luxury department store retailer, whose banners include Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, reiterated that it continues to meet requirements outlined in a restructuring support agreement where capital partners have pledged exit financing of $500 million.
