Article
Saks Chairman Richard Baker Calls Bankruptcy Reports ‘Unsettling,’ Says All Paths Being Explored
Reporting: Gaurav Sharma
Saks Global’s executive chairman, Richard Baker, has told his employees that the luxury retailer is exploring all “potential paths” to secure a strong and stable future for the company after Octus reported that the company was mulling a chapter 11 bankruptcy filing, according to sources.
In an email to his staff last week, which was reviewed by Octus, Baker said bankruptcy reports in the media can be “unsettling” but urged the staff to remain focused.
“As you may have seen, there has been recent media chatter speculating on our financial position in light of this coverage, and we continue to focus on serving our customers and spending time with our loved ones during the busy holiday season. I am writing to provide an update on our near-term path forward.
Together with our key financial stakeholders, we are exploring all potential paths to secure a strong and stable future for Saks Global. These discussions are ongoing and may take some time,” Baker said in the email to his staff.
“I know that seeing headlines like these can be unsettling. As the world’s largest multi-brand luxury retailer, our financial position naturally attracts public attention. With that in mind, I ask that everyone remain focused on what we do best: delivering exceptional products, elevated experiences, and highly personalized service to our customers,” the email continued.
Octus on Dec 19 reported that Saks Global was preparing a DIP financing in advance of a potential chapter 11 bankruptcy filing. The luxury department store chain, which has wrestled with ongoing performance and liquidity woes, has more than $100 million of interest payments due on Dec. 30.
No final decision had been made about a chapter 11 filing, and the company was in discussions with multiple parties and exploring various options, as reported.
Saks is working with Willkie Farr as legal advisor, according to sources. The majority of creditors are working with Paul Weiss as counsel, and minority creditors are advised by Glenn Agre, as reported.
In mid-October, Octus reported that the company lowered its full-year adjusted EBITDA guidance to a range of $140 million to $160 million, down sharply from its prior projection of $275 million to $325 million.
Saks Global did not respond to a request for comment.
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