Saks Global wins approval for creditor vote plan

Saks Global has secured court approval for its disclosure statement, paving the way for creditor voting on its reorganisation plan as the luxury retailer targets an exit from Chapter 11 bankruptcy this summer.

The US Bankruptcy Court for the Southern District of Texas gave the green light to the disclosure statement tied to Saks Global's amended reorganisation plan.

It allows the company to proceed with soliciting votes from its creditors.

The amended plan has the backing of both the company's capital partners and the Unsecured Creditors' Committee – which counts several leading luxury brands among its members – after an agreed framework resolved all outstanding issues between the parties.

Saks Global CEO Geoffroy van Raemdonck said: “As we execute our business plan to achieve our financial targets, we will keep our customers at the centre 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.”

Central to the plan is a five-year roadmap projecting financial performance through FY30.

On emergence from bankruptcy, Saks Global expects to hold close to $700m in liquidity, with that figure anticipated to grow as the business moves towards positive cash flow.

Longer-term targets include $9bn in total gross merchandise value and double-digit adjusted EBITDA margins, both by FY30.

Since mid-January, the retailer said it has pursued a range of strategic measures, including deepening relationships with brand partners, streamlining its operational footprint and corporate structure, sharpening its focus on luxury and full-price sales, and withdrawing from non-core businesses.

The company has also entered a restructuring support agreement under which its capital partners have committed $500m in exit financing.

Saks Global said it "continues to meet all of the required milestones in the Chapter 11 process as it moves toward emergence, including having executed a Restructuring Support Agreement under which the Company's capital partners committed to provide $500m in exit financing".

"Saks Global wins approval for creditor vote plan" was originally created and published by Retail Insight Network, a GlobalData owned brand.

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