June 26 (Reuters) – 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.
(Reporting by Juveria Tabassum and Koyena Das in Bengaluru; Editing by Sriraj Kalluvila and Sahal Muhammed)
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