Saks eyeing raised debt as trade uncertainty grows
Saks Fifth Avenue SNL anniversary window Credits: Saks Fifth Avenue Department store giant Saks Global Enterprises is said to be mulling the possibility of raising more debt as uncertainty around tariffs continues to grow. In a statement to Bloomberg, the company said: “In this period of economic uncertainty, driven by tariffs and the threat of further trade restrictions, we are prudently evaluating opportunities to strengthen our balance sheet.” According to the media outlet, the new debt, targeted at 300 million dollars, sources said, would take the shape of a first-in, last-out loan raised under the 1.8 billion dollars borrowing capacity of the company’s existing revolving credit facility. Saks Global was established following Saks’ acquisition of the Neiman Marcus Group earlier this year, which brought together Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th under one portfolio. Following the merger, however, the joint companies moved to make two rounds of job cuts, laying off around 5 percent of its corporate staff in February and around 550 job roles later in April. Now, Saks Global is attempting to mitigate the impact of trade uncertainties upon the implementation of heightened tariffs under president Donald Trump. As reported by Bloomberg, investors have scrapped retailers’ bonds in response to tariff threats and the possibility of shrinking their margins, making retail a vulnerable sector.
Department store giant Saks Global Enterprises is said to be mulling the possibility of raising more debt as uncertainty around tariffs continues to grow.
In a statement to Bloomberg, the company said: “In this period of economic uncertainty, driven by tariffs and the threat of further trade restrictions, we are prudently evaluating opportunities to strengthen our balance sheet.”
According to the media outlet, the new debt, targeted at 300 million dollars, sources said, would take the shape of a first-in, last-out loan raised under the 1.8 billion dollars borrowing capacity of the company’s existing revolving credit facility.
Saks Global was established following Saks’ acquisition of the Neiman Marcus Group earlier this year, which brought together Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th under one portfolio.
Following the merger, however, the joint companies moved to make two rounds of job cuts, laying off around 5 percent of its corporate staff in February and around 550 job roles later in April.
Now, Saks Global is attempting to mitigate the impact of trade uncertainties upon the implementation of heightened tariffs under president Donald Trump. As reported by Bloomberg, investors have scrapped retailers’ bonds in response to tariff threats and the possibility of shrinking their margins, making retail a vulnerable sector.
