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Saks Global has officially secured an additional $300m (£225m) of its $1.75bn (£1.31bn) committed capital package, following approval of its five-year business plan.
The final tranche was released after an ad hoc group of senior secured bondholders approved the company’s strategic roadmap and met several key milestones.
The retail group, which operates Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, will use the liquidity to support its ongoing bankruptcy restructuring process.
A formal plan of reorganisation is expected to be filed with the US Bankruptcy Court for the Southern District of Texas within the next few weeks.
Since mid-January, chief executive Geoffroy van Raemdonck and chief financial officer Brandy Richardson have overseen the acceleration of inventory flow and store portfolio optimisations.
Shipping has resumed for nearly 600 brands, releasing $1.4bn (£1.05bn) in retail receipts and resulting in a 60% increase in merchandise receipts for March.
The company has also streamlined its off-price business to 12 locations and consolidated its supply chain network into three distribution centres in Texas, Pennsylvania and California.
According to management, the business plan assumes future growth and profitability will be supported by the current liquidity position and a focus on full-price selling.
van Raemdonck said: “We have made significant progress over the past two months as we work to position Saks Global for the future, quickly stabilising our business, improving inventory flow and investing in our transformation.
“I’m incredibly proud of our entire leadership team and colleagues across the organisation whose collective strength and focus have enabled us to continue to serve our customers and brand partners as we take decisive steps to build a stronger Saks Global.”
