DESPITE OWING VENDORS $275M, SAKS GLOBAL REPORTS OPTIMISTIC FUTURE

US retailer Saks Global revealed that it operated at a $100 million loss in fiscal year 2024, which ended in February 2025. Additionally, the company revealed that it owes its vendors over $275 million. It is essential to distinguish this news from the recent multi-billion-dollar filing by Hudson’s Bay against Saks in Canada. The new financial details were revealed in a Bondholder Call with Saks Global CEO Mark Metrick, who did not offer questions at the end of the call.

The cash shortage was expected following the $2.7 billion Neiman Marcus acquisition and stock dip. In the last few weeks, rating analysts from S&P Ratings warned that the company had “a less-than-adequate liquidity position, which will likely lead to additional challenges in building seasonal inventory while executing on its synergy initiatives from its acquisition of Neiman Marcus.” And that the company had $1 billion in outstanding debt “as the result of the NMG acquisition, delayed vendor payments, nonrecurring expenses, and seasonal draws.” To compensate, this week, Saks Global brokered a $350 million financing commitment from SLR Credit Solution.

The company’s total value is currently estimated at $2.1 billion, according to the bondholder call. Going forward, Metrick did offer that tariffs could raise consumer costs between 8%-10%. A wildcard in the company’s profit expectations exists in its relationship with vendors. “At the same time, the company’s efforts to stretch payables have resulted in vendors withholding inventory receipts, which constrained the ABL borrowing base,” Carvalho and O’Neill said to Retail Dive. Despite all of this, Metrick told bondholders that he expects the company to realize over $285 million in 2025, which was dramatically higher than the previously predicted $150 million.