• by Sarah Mahoney , 7 hours ago

Saks Global has secured $500 million in exit financing, putting the luxury retailer on track to emerge from bankruptcy this summer. In a surprise move, the company also reversed course on three of its planned store closures — keeping open Saks Fifth Avenue locations in Sarasota, Florida., and Palm Desert, California, as well as the Neiman Marcus store in White Plains, New York.

The news comes amid signs that the company, which owns Neiman Marcus, Bergdorf Goodman and Saks Fifth Avenue, is repairing damaged relationships with vendors and already seeing early signs of sales growth.

"Achieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners' confidence in our go-forward vision, guided by our relentless devotion to the luxury customer," said Geoffroy van Raemdonck, CEO of Saks Global. "As we advance the restructuring process, our focus remains on strengthening our brand partner relationships and delivering an expertly curated product assortment and personalized service."

The company's debt struggles before the bankruptcy led to slow payments to vendors, making many reluctant to ship to Saks. That resulted in thinner selection for luxury shoppers, causing them to spend less and look elsewhere.

That trend is now reversing. More than 650 brands are once again shipping merchandise, releasing $1.5 billion in retail receipts and accounting for more than 90% of the retailer's expected inventory for the first quarter. March inventories are up 18% year over year. Customers are responding: The company reports a 6% increase in spending per store visit and an 11% increase in online conversion.

The store closure reprieve, first reported by Women's Wear Daily, was the week's biggest surprise. Three locations from the company's list of 24 stores slated for closure have been pulled back, which may be a sign that the recovery is moving faster than expected in some markets.

Van Raemdonck, who led Neiman Marcus from 2018 through its 2024 acquisition by Saks, steered that retailer through its 2020 bankruptcy. He took the helm at Saks Global after its bankruptcy filing in January, and replaced many of its key executives.