Saks owner races to raise $1 billion in financing as CEO steps down

Saks Global is seeking more than $1 billion in rescue financing to address outstanding debts, and CEO Marc Metrick is stepping down after nearly three decades with the company.

Saks Global, owner of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, is reported to be seeking more than $1 billion in rescue financing to address outstanding debts. The company recently missed an interest payment tied to prior acquisition financing and has a reported short grace period. The firm announced that CEO Marc Metrick is stepping down and will be succeeded by executive chairman Richard Baker. Officials say talks with investors are ongoing and may conclude within a couple of weeks. Key details: - The company needs a cash infusion to cover debts, including a reported $100 million interest payment that came due earlier this week. - The article reports the company missed an interest payment related to $2.7 billion borrowed to acquire Neiman Marcus and that a 30-day grace period appears to be in place. - Saks Global is in discussions with new and existing investors for more than $1 billion; the article reports that, if talks fail, financing could take the form of debtor-in-possession support in a Chapter 11 reorganization. - Marc Metrick is stepping down as CEO after leading Saks Fifth Avenue since 2015, and Richard Baker will resume the role, the company announced. Summary: The company faces financial pressure with overdue vendor obligations and a reported drop in revenues. Reported next steps include investor discussions that may wrap within a couple of weeks and a 30-day grace period on the missed interest payment; further outcomes are undetermined at this time.