Saks Global struggles to line up bankruptcy financing
CNBC••general
Key Points:
- Saks Global is struggling to secure up to $1 billion in debtor-in-possession (DIP) financing needed to maintain operations during a potential Chapter 11 bankruptcy filing, with investor interest currently limited due to doubts about the company's ability to reorganize and repay.
- The luxury retailer, which owns Neiman Marcus and Bergdorf Goodman and operates over 70 full-line and 100 off-price stores, missed an interest payment last month, further dampening investor enthusiasm for lending.
- Potential DIP lenders are mainly limited to liquidators with investment arms and alternative asset managers experienced in distressed retail, but even some of these investors have declined involvement, increasing the risk of liquidation.
- Without the DIP loan to cover essential expenses such as payroll and rent, Saks
