Saks Global emerges from bankruptcy with new name, lower debt

Luxury retailer Saks Global on Friday emerged from ⁠Chapter 11 bankruptcy after nearly five months, under a new ownership structure and corporate name and with a smaller store footprint ⁠and lower debt.

The ‌company will operate ⁠under the name Exemplar Luxury Group (ELG), and will focus on luxury retail, after Saks ​closed most ​of its off-price locations as part of its restructuring over the past few months.

ELG’s reconstituted board will consist ‌of ​two representatives each from investment firms Pentwater Capital Management and ‌Bracebridge Capital that partnered ⁠with Saks during the restructuring process, the ‌company said.

After struggling with weak sales for more than a year, piling up debt and defaulting on vendor payments, Saks filed for bankruptcy protection in ​January.

ELG said on Friday that its debt had been reduced by nearly 75% as part of the ​restructuring.

The ‌company’s ​December 2024 merger with Neiman Marcus, orchestrated ‌by ‌real estate tycoon Richard Baker, caused cash shortfalls and inventory issues at its stores and strained its relationship ⁠with critical vendors such as Chanel, LVMH and Kering.

Saks Global filed for bankruptcy ‌with $3.4 billion in debt, just ​about a year after the merger.