Saks Global Nears $1.75 Billion Funding Deal to Sustain Operations Through Bankruptcy

2026-01-14 companies

New York, Tuesday, 13 January 2026.
Facing imminent Chapter 11, Saks Global is finalizing a critical $1.75 billion financing package to keep its iconic storefronts open. This massive liquidity injection aims to stabilize the luxury conglomerate as it navigates a complex restructuring and significant leadership transition following its debt-laden merger.

Lifeline for a Luxury Giant

Saks Global is reportedly on the verge of securing a $1.75 billion financing agreement led by Pentwater Capital Management and Bracebridge Capital [1]. This liquidity injection is critical for the retailer, which is expected to file for Chapter 11 bankruptcy imminently—potentially as early as today, Tuesday, January 13, 2026 [1][2]. The financing package is structured to allow the company’s prestigious banners, including Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus, to remain operational while the business undergoes court-supervised restructuring [1]. Without this capital, the conglomerate would face severe difficulties in maintaining inventory levels and paying vendors, a struggle that has already led some major brands to withdraw merchandise [2].

Structuring the Liquidity Injection

The proposed financing is composed of multiple tranches designed to address immediate solvency and future recovery. The package includes an immediate $1 billion debtor-in-possession (DIP) loan to fund operations during the bankruptcy process, supplemented by $250 million in asset-backed loan financing from banks [1]. This creates an immediate liquidity pool of 1250 million dollars to stabilize the business. Additionally, the investor group has outlined access to a further $500 million in financing, contingent upon Saks Global successfully exiting bankruptcy protection [1]. This capital is essential for the retailer to manage its substantial liabilities, which include approximately $2.2 billion in debt accumulated following the 2024 acquisition of Neiman Marcus [1][6]. Restructuring experts have noted that the company’s substantial real estate assets, such as the Saks Fifth Avenue flagship store appraised at approximately $3.5 billion, likely played a key role in securing this credit [2].

Leadership Volatility at the Helm

Compounding the financial uncertainty is a sudden leadership vacuum at the very top of the organization. Richard Baker, the architect of the conglomerate and its Executive Chairman, is reportedly finalizing his exit as Chief Executive Officer less than two weeks after assuming the role [3]. Baker had only recently replaced former CEO Marc Metrick earlier in January 2026 as the crisis deepened [1][5]. His departure marks a significant shift for the company as it prepares for insolvency proceedings, where he is expected to lose management control [2]. This rapid turnover in the C-suite underscores the severity of the operational distress facing the retailer as it attempts to reorganize.

The Cost of Consolidation

The current crisis stems largely from the aggressive consolidation strategy pursued by Hudson’s Bay Co., which acquired Neiman Marcus for $2.65 billion in 2024 to form Saks Global [1]. While the merger targeted $600 million in annual cost savings, the debt burden proved unsustainable against a backdrop of falling sales [1]. In October 2025, the company reported a year-over-year revenue decline of 13% [6]. The financial strain reached a breaking point in late December 2025, when Saks Global missed a $100 million interest payment [6], leading S&P Global Ratings to downgrade the retailer to “selective default” [5]. Vendors have been monitoring the situation closely; for instance, Vince Holding Corp., which counts Saks as 7% of its business, stated on January 12 that it is watching the retailer’s status “on a minute-by-minute basis” [5].

Sources

Bankruptcy Saks Global