After weeks of tumult, Saks Global could file for bankruptcy by Tuesday, though it’s unclear how much of the luxury giant’s prized real estate can be snatched up by creditors, 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 Authentic owns a 50% stake in an entity that has the right to license merchandise, among other uses of the storied, century-old nameplate names, according to a public announcement by the companies and sources close to the situation.
Authentic’s licensing stake in the retail brands could increase in the event of a bankruptcy filing, said sources with knowledge of the situation.
It is unclear how much equity Saks Global has in its vast real estate holdings and what would be available to creditors, including its historic Fifth Avenue flagship, the sources said.
But a source close to Saks said the company’s flagship is appraised at approximately $3.5 billion and that it has debt of $1.25 billion. The building’s remaining equity of more than $2 billion could be pledged to creditors, the source added.
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.
Restructuring experts speculated that Saks Global’s luxury inventory, store equipment and stake in its retail brands could also help secure a DIP loan.
“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, that client’s biggest customer.
Any purchaser of Saks Global would likely have to hammer out a licensing agreement with Authentic.
Authentic 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 for licensing purposes.
Authentic declined to comment and Saks Global could not be reached for comment.
