NEW YORK: Luxury retailer Saks Global emerged from Chapter 11 bankruptcy after nearly five months, with less than half of its previous stores and a quarter of its debt.
The company, home to three of America’s most iconic retail brands – Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman – will operate under the name Exemplar Luxury Group (ELG) and will focus on luxury retail, it said in a statement.
ELG’s reconstituted board will include two representatives each from investment firms Pentwater Capital Management and Bracebridge Capital that partnered with Saks during the restructuring process, the company said.
The firm said its debt had been reduced by nearly 75% as part of the restructuring, which also wiped out its equity.
Saks emerged from bankruptcy with 49 stores, having closed 62 of its off-price stores, including 57 of its Saks OFF 5th and all five Neiman Marcus Last Call stores.
In March, it closed 12 Saks Fifth Avenue stores and three Neiman Marcus locations. It had entered bankruptcy with 33 Saks Fifth Avenue locations.
Saks also ended its partnership with early investor Amazon to sell its products on the eCommerce platform during the restructuring. The partnership had faced pushback from top luxury brands who feared that selling on a mass-market site would dilute their image. — Reuters
