What: Saks Global seeks additional financing through its existing credit facility while facing a crucial June interest payment, reflecting ongoing challenges in its post-merger integration.

Why it is important: The move highlights the financial pressures facing consolidated luxury retail, demonstrating how even successful cost synergies of $150 million cannot fully offset the challenges of managing a $10 billion retail empire in today's market.

Saks Global has tapped PJT Partners, Kirkland & Ellis, and Bank of America to explore financing options, including a potential first-in, last-out loan under its existing $1.8 billion revolving credit facility. The company's CEO Marc Metrick previously indicated plans to raise approximately $350 million through this mechanism, while simultaneously considering real estate asset sales to strengthen its financial position. This strategic move comes as the company's bonds, issued to finance its recent $2.7 billion Neiman Marcus acquisition, have lost nearly half their value since their December issuance. The timing is particularly crucial with an impending $120 million interest payment due in June, amid broader economic pressures including trade policy impacts on the US retail sector. The company's efforts to maintain liquidity reflect the complex challenges of managing a newly merged luxury retail enterprise that combines Saks Fifth Avenue and Bergdorf Goodman with Neiman Marcus.

IADS Notes: The current search for additional financing by Saks Global, as reported in May 2025, comes at a critical juncture in the company's post-merger transformation. Following the December 2024 merger that created a $10 billion luxury retail powerhouse, the company has faced mounting challenges despite exceeding cost synergy targets of $150 million. While CEO Marc Metrick maintains current liquidity of $350-400 million, the company's bonds trading at 58 cents on the dollar reflect market concerns about its financial stability. The exploration of a FILO facility within its existing $1.8 billion revolving credit facility occurs against a backdrop of broader industry pressures, with only 20% of executives expecting market improvement in 2025. This situation exemplifies the complex challenges facing consolidated luxury retail, as increased tariffs on European goods and changing consumer preferences continue to impact the sector.

Saks hires Kirkland & Ellis, PJT to explore financing options