Exclusive | Saks owner races to raise $1B in – Business News
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 present buyers – even because the company introduced its CEO is stepping down, The Post has realized.
The luxurious giant wants a money infusion to repay a slew of money owed that embrace a $100 million curiosity cost to bondholders that got here due earlier this week. The company additionally owes hundreds of thousands to distributors, many of whom haven’t been paid in full for more than a yr.
Saks is now in discussions with buyers for a large money injection to stave off a attainable chapter submitting, a source with data of the scenario advised The Post. If these talks fail, the capital might take the shape of debtor-in-possession financing in a Chapter 11 reorganization, the source stated.
Marc Metrick stepped down as CEO of Saks Global. WWD through Getty Images
“The discussions will likely wrap up within a couple of weeks,” this source stated. “It’s not resolved yet.”
Reports of a attainable chapter ramped up this week after the luxurious retailer missed an curiosity cost to bondholders on Tuesday for the $2.7 billion it borrowed to purchase Neiman Marcus a yr in the past.
Saks Global seems to have purchased itself a 30-day grace period for the curiosity cost, in accordance to RetailStat, which supplies credit information and evaluation on retailers.
Meanwhile, Saks Global introduced on Friday that CEO Marc Metrick is stepping down after a decade on the helm.
Executive chairman, Richard Baker, succeeded Metrick as CEO. Saks Global
“After nearly three decades with Saks, I will be stepping down as chief executive officer,” Metrick stated in a assertion. “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 govt chairman, Richard Baker, a real estate mogul who was beforehand CEO earlier than the Neiman Marcus acquisition.
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The company stated Metrick, who led Saks Fifth Avenue since 2015, is leaving to “pursue new opportunities.”
Saks Global’s revenues, which embrace Bergdorf Goodman and Saks Off fifth, dropped 13% in the company’s most up-to-date quarter, which ended Aug. 2.
Saks Global has huge real estate holdings, which it has begun to leverage to raise capital. Bloomberg through Getty Images
In May, the company closed a Saks Fifth Avenue store in San Francisco. This week, it bought the land beneath its Beverly Hills Neiman Marcus store to Ashkenazy Acquisition Corp. for an undisclosed quantity. The store now has a long-term lease with the New York-based Ashkenazy.
In June, Saks Global stated it raised $600 million in contemporary capital from bondholders. It has additionally sought to sell a minority stake in Bergdorf to raise more funds.
The merger with Nieman Marcus coincided with a hunch in demand for luxurious items.
Saks Fifth Avenue fell behind on its funds to distributors. DW labs Incorporated – stock.adobe.com
There have been a number of rounds of layoffs this yr on the company, which operates more than 70 malls and is the biggest luxurious retailer in the world.
“Marc has been a valued leader at Saks for many years, helping to drive significant transformation and growth while solidifying the company’s enduring position in luxury,” Baker stated in assertion. “We thank Marc for his leadership and dedication and wish him continued success in his next chapter.”
