Foto Brian Zak/NY Post
The raised funds will allow the company to stabilize its operations in the short term. First of all, they will be aimed at restoring confidence on the part of suppliers, as well as at revising the terms of repayment of accumulated debt. The representatives of the company emphasized that the completion of this round of financing actually closes the stage of emergency support and gives Saks Global the necessary reserve of liquidity.
The developed business plan provides for a gradual recovery of income through cost optimization and more efficient asset management. The document is supported by bondholders and will become part of the official plan of reorganization, which will soon be submitted to the bankruptcy court for the Southern District of Texas.
As part of the restructuring, the company has already made extensive cuts to its retail network. Since filing for bankruptcy, Saks Global has closed 20 of its 33 Saks Fifth Avenue stores, focusing on more profitable locations and online destinations. The move was part of a strategy to cut costs and adapt to changing market conditions.
Despite a significant debt load, estimated at 3.4 billion dollars, Saks Global management expects that the set of measures taken will allow the company to gradually restore financial stability and strengthen its position in the segment of premium retail.
