Chapter 11 bankruptcy is a legal process, primarily for businesses, allowing them to reorganise their debts and operations to become financially viable, rather than liquidating assets.
The company secured a financing commitment of approximately $1.75 billion, comprising $1.5 billion from an ad hoc group of its senior secured bondholders and approximately $240 million of incremental liquidity from its asset-based lenders.
This financing package will strengthen the company's balance sheet and position it for a strong and stable future, the company said in a release.
Saks Global also announced the appointment of Geoffroy van Raemdonck as its chief executive officer (CEO), effective immediately.
Van Raemdonck, who previously served as CEO of Neiman Marcus Group prior to its acquisition by Saks Global in 2024, succeeds Richard Baker, who stepped down from his role as executive chairman and CEO of Saks Global, effective January 13.
As part of the Chapter 11 process, the company is evaluating its operational footprint to invest resources where it has the greatest long-term potential.
Upon court approval, the $1 billion of debtor-in-possession financing from the ad hoc group will provide ample liquidity to fund Saks Global's operations and turnaround initiatives. The ad hoc group has also committed $500 million of financing to be available to the company upon emergence, which is expected later this year.
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