After weeks of tumult, Saks Global could file for bankruptcy by Tuesday, though it’s unclear whether creditors would be able to snatch up the luxury giant’s prized real estate, The Post has learned.
The owner of Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and Saks off 5th has been in talks to secure over $1 billion in debtor-in-possession, or DIP, financing — which is needed to keep operations going — from private equity firms, according to sources familiar with the matter.
They said deals on the table include a possible $1.25 billion infusion from Bracebridge Capital and Pentwater Capital or $1.5 billion from Pimco.
Pimco was a co-owner of Neiman Marcus when it was sold to Saks in a blockbuster $2.6 billion deal in 2024.
A complicating factor is that brand licensing company ABG owns 51% of Saks’ storied, century-old nameplates, according to a public announcement by the companies and sources close to the situation.
ABG’s stake in the retail brands increases to 77% in the event of a bankruptcy filing, sources with knowledge of the situation said.
It is unclear whether creditors can get access to Saks Global’s real estate holdings, such as its historic Fifth Avenue flagship, said sources close to the situation.
Since Saks Global’s estimated 20 million square feet of wholly-owned or joint-venture real estate assets are believed to be held in “a bankruptcy-remote subsidiary,” they apparently can’t be sold off in bankruptcy proceedings, according to a Jan. 9 report from RetailStat, a research data firm.
Saks Global’s chief executive and the architect of the Neiman Marcus acquisition is real estate mogul Richard Baker, who will likely lose management control after the company declares bankruptcy, sources said.
If Saks’ real estate is not pledged as collateral in a Chapter 11 filing, restructuring experts speculated that the retailer’s luxury inventory, store equipment and a minority stake in its retail brands would be the primary source securing a DIP loan.
“I’m perplexed about what creditors grab onto if the real estate is carved out of a bankruptcy,” said a real estate source who did not want to be identified.
“Two deals are being negotiated right now, but the fact that Saks Global cannot outright sell the names of the retailers is problematic for a purchaser,” said Joseph Sarachek, a restructuring attorney who represents more than 30 vendors to the retailer.
Sarachek said he believes that some of the real estate could be pledged as collateral for a DIP loan, but he acknowledged that “we don’t have any guarantees about the real estate.”
Saks’ vendors are anxiously awaiting the filing.
There are reports that some major brands, including Chanel, have begun to yank their products out of Saks stores including the one at Canal Place Shopping Center in New Orleans.
Sarchek said one of his clients is owed $600,000 from Saks off 5th, the client’s biggest customer.
Any purchaser of Saks Global would likely have to hammer out a licensing agreement with ABG to operate the stores, sources tell The Post.
ABG owns dozens of brands including Reebok, Brooks Brothers, Vince Camuto, Elvis Presley, Marilyn Monroe and Barneys.
In 2024, it formed a joint venture with Saks Global called Authentic Luxury Group, investing $150 million in an entity that owns the iconic Saks and Neiman Marcus brands.
ABG declined to comment and Saks Global could not be reached for comment.
