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Retailer Saks to cut 1100 jobs
22 Jan '09
4 min read
In addition to cost reductions, the Company has lowered its planned capital expenditures for fiscal 2009 to approximately $60 million, a decrease of over 50% from the projected 2008 level. The 2009 capital expenditures primarily will be related to the completion of the women's designer floor in the New York City flagship store and certain renovation projects underway in other stores, as well as investments in routine store maintenance and corporate infrastructure projects. The Company also has targeted an approximate 20% decrease in inventory receipts for 2009.
“Based on the expectation for continued weakness in consumer demand during 2009, we also are fortunate to have flexibility under our existing debt facilities, with no short-term maturities of senior debt,” Sadove added. The Company's revolving credit facility does not terminate until September 2011, and it is subject to no financial covenants except as to the last $60 million of availability. The Company's remaining senior notes total $192.3 million and mature as follows: $45.9 million in December 2010, $141.6 million in October 2011, $2.9 million in December 2013, and $1.9 million in February 2019. The Company also has a 2% $230 million convertible debenture which matures in 2024.
Sadove concluded, “We have an exceptional brand, valuable and unencumbered real estate, a loyal customer base, solid vendor relationships, and an outstanding team. Although we are staying the course with our long-term strategies, we are making prudent adjustments to our organization and our operations that are needed in this environment. We are positioning the Company to be an even stronger organization when the economy improves.”
“Based on the expectation for continued weakness in consumer demand during 2009, we also are fortunate to have flexibility under our existing debt facilities, with no short-term maturities of senior debt,” Sadove added. The Company's revolving credit facility does not terminate until September 2011, and it is subject to no financial covenants except as to the last $60 million of availability. The Company's remaining senior notes total $192.3 million and mature as follows: $45.9 million in December 2010, $141.6 million in October 2011, $2.9 million in December 2013, and $1.9 million in February 2019. The Company also has a 2% $230 million convertible debenture which matures in 2024.
Sadove concluded, “We have an exceptional brand, valuable and unencumbered real estate, a loyal customer base, solid vendor relationships, and an outstanding team. Although we are staying the course with our long-term strategies, we are making prudent adjustments to our organization and our operations that are needed in this environment. We are positioning the Company to be an even stronger organization when the economy improves.”
Saks Incorporated
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