What: Saks Global’s liquidity and credit rating remain under pressure as the company struggles to stabilize finances after its $2.7 billion merger with Neiman Marcus and Bergdorf Goodman.

Why it is important: The situation at Saks Global demonstrates how even significant refinancing and cost-saving measures may not be enough to ensure stability in today’s retail environment.

Saks Global continues to face significant financial headwinds following its high-profile $2.7 billion merger with Neiman Marcus and Bergdorf Goodman. Despite CEO Marc Metrick’s assurances of maintaining $350–400 million in liquidity and securing new financing, the company’s financial health remains fragile, with persistent concerns about its ability to meet vendor obligations and manage a heavy debt load. The integration of three major luxury retailers has proven complex, resulting in operational disruptions, extended payment terms, and a notable reduction in brand partnerships, all of which have heightened vendor caution and market skepticism. Standard & Poor’s has repeatedly downgraded Saks Global’s credit rating, most recently to CC, viewing its latest $600 million financing package as tantamount to default. These developments highlight the precarious balance Saks Global must maintain between restructuring its debt, achieving operational stability, and restoring confidence among vendors and investors, all against the backdrop of a challenging luxury retail landscape.

IADS Notes: Since the December 2024 merger, Saks Global has repeatedly sought to reassure the market about its liquidity, reporting $350–400 million in available cash as of April 2025. However, the company’s efforts to secure additional financing and implement cost synergies have been overshadowed by persistent vendor payment delays, a 25% reduction in brand partnerships, and successive credit downgrades by S&P in May and July 2025. The $600 million refinancing deal in June 2025, which required creditor concessions, further underscored the ongoing struggle to balance operational transformation with financial stability.

Saks’ S&P scorecard shows continued concerns about liquidity