Saks Global secures final 300 million dollars of committed capital

Amid its ongoing bankruptcy proceedings, Saks Global has secured access to 300 million dollars, the final tranche of its 1.75 billion dollars in committed capital.

The US retail giant unlocked the final part of the funding after receiving approval for its five-year business plan from senior secured creditors, as well as achieving other key milestones.

This latest tranche completes Saks Global’s financing package, which it intends to use to support operations and further its transformation amid an ongoing Chapter 11 process.

The company’s full plan of reorganisation, which will include key elements outline growth and profitability, is due to be filed with the US Bankruptcy Court for the Southern District of Texas within the coming weeks.

In a statement, Geoffroy van Raemdonck, chief executive officer of Saks Global, said significant progress had already been made to stabilise and improve inventory flow over the past two months.

He continued: "With continued strong support from our capital partners, we are laying the path to realise the combined full potential of our three banners, achieve double-digit adjusted EBITDA margin and drive profitable and sustainable growth.”

Much of the company’s efforts have been on sharpening focus towards its full-price luxury business, accelerated through the shuttering of its off-price business and streamlining the supply chain network.

Brand partnerships are also a key element, with Saks reporting the resumption of shipping for nearly 600 brands, resulting in a nearly 60 percent increase in merchandise receipts.

Van Raemdonck added: "This is tremendous progress in a very short period of time. I'm incredibly proud of our entire leadership team and colleagues across the organisation whose collective strength and focus have enabled us to continue to serve our customers and brand partners as we take decisive steps to build a stronger Saks Global."