Saks goes to creditor vote after court approval
Saks Global will put its bankruptcy plan to creditors for a vote after securing an approval from a Texas judge.
Granted by the US Bankruptcy Court for the Southern District of Texas, it will allow the business to ask for approval on its restructuring plan which sets out to clear the company’s equity and hand control over to its senior lenders.
The deal would see Saks Global’s senior lenders take control of the company after providing $1 billion in new funding through the bankruptcy and pledging an additional $500 million after the company exits Chapter 11.
As part of a news release to the media, leaders at Saks believe if it receives the required votes, the company can start moving towards confirmation and emergence this summer.
The statement went on to explain how the plan currently has the support of the capital partners and the Unsecured Creditors’ Committee, which includes leading luxury brands, as part of an agreed framework reached by the parties that resolves all outstanding items among them.
Commenting on the update, Geoffrey van Raemdonck, CEO of Saks Global, said: “Today’s significant step forward demonstrates our continued momentum toward emergence this summer with a strong foundation for long-term growth.
Adding: “We have made remarkable progress over the past three and a half months, and I am grateful for the dedication and focus of our talented teams. As we execute our business plan to achieve our financial targets, we will keep our customers at the center of everything we do. Saks Global’s enduring role within the luxury ecosystem remains anchored in offering a true luxury shopping experience and providing our brand partners with unparalleled access to the luxury customer.”
The filings show the core components of the company’s five-year business plan including fuelling the business with nearly $700 million of liquidity at emergence, accelerating sales growth to generate $9 billion in total growth merchandise value by FY30, and delivering double-digit adjusted EBITDA in the same period.
van Raemdonck concluded: “We are building a stronger, more focused company that is positioned to serve as the premier gateway to the U.S. luxury customer and be 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. 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.”
Management at Saks will hope the progress instils some confidence back into the strained relationships it has with the links of LVMH and Kering Group.
Votes on the plan are due by June 1.
The news comes just weeks after a Texas judge approved millions in bonus payments for top Saks execs. Read that story on Watch Insider in full HERE.
