"The fall of the high-end department store parent has been anticipated for months amid signs that its 2024 deal to acquire Neiman Marcus, financed by $2.2 billion in high-interest bonds, has left it struggling financially. The $2.7 billion deal, which included investments from Amazon and Salesforce, was intended to strengthen legacy brands by providing them with scale and creating efficiencies. Instead, it left the company burdened by hefty interest payments and unable to pay vendors."
"By February 2025, then-Saks Global CEO Marc Metrick told vendors that the company wouldn't begin paying overdue invoices until July, at which point it would make payments in installments over 12 months. Metrick stepped down as CEO in early January after a roughly three-decade career with the company and was replaced by then-executive chairman Richard Baker. By June, the six-month-old debt was restructured after Saks fell short on a nine-figure interest payment that was due. The company missed another $100 million interest payment to bondholders that was due December 30, according to Bloomberg."
Saks Global filed for Chapter 11 bankruptcy protection in the Southern District of Texas. The company owns Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. A 2024 $2.7 billion acquisition of Neiman Marcus, financed in part by $2.2 billion in high-interest bonds, increased the company’s debt burden. The debt led to missed interest payments and unpaid vendor invoices. CEO Marc Metrick informed vendors in February 2025 that overdue invoices would begin being paid in July in installments, and he stepped down in January, replaced by Richard Baker. The company restructured six-month-old debt after missing a nine-figure interest payment and missed a $100 million payment due December 30.
Read at Business Insider
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