Saks Global Enterprises’ Financial Challenges
Saks Global Enterprises, which acquired Dallas-based Neiman Marcus last year, said it’s considering raising more debt, seeking to shore up its finances as President Donald Trump’s trade policies threaten to batter the U.S. retail sector.
“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,” the company said in an emailed statement.
Reasons Behind the Decision
The new debt would come in the form of a so-called first-in, last-out loan raised under the $1.8 billion borrowing capacity of its existing revolving credit facility, it said.
Saks Global acquired Neiman Marcus in a $2.7 billion deal at the end of last year, a play to expand its luxury offerings. Its portfolio also includes Bergdorf Goodman and the more value-friendly Saks Off 5th chain.
Impact of Trade Policies
The retail sector is seen as among the most vulnerable to Trump’s trade agenda. Investors have responded by dumping retailers’ bonds as tariffs threaten to shrink their margins and potentially upend their supply chains.
Tariffs have darkened the outlook for Saks, which was facing other challenges before Trump’s election. In February — before the tariff turmoil — the company told vendors it would take more than a year to pay unpaid bills, Bloomberg previously reported. Saks said it would pay past due balances in 12 monthly installments starting in July.
Consequences of the Merger
Saks has had layoffs since the beginning of 2025, trimming corporate overhead and redundant positions following the merger with Neiman Marcus.
Saks’ bonds maturing in 2029 extended declines on Friday, falling to 64.33 cents on the dollar, according to Trace. The price of the debt has cratered since it was issued at par in December to finance the Neiman Marcus deal.
Related: Saks Global cutting workers after Neiman Marcus tie-up
Other Developments
Dallas Market Center starting anti-tariff push, says ‘Stand With Main Street’
Saks says no ‘broader plan to consolidate’ in markets with Neiman as it closes SF store
Authors
— Eliza Ronalds-Hannon and Reshmi Basu with assistance from Jeannette Neumann
Conclusion
In conclusion, Saks Global Enterprises is facing significant financial challenges due to the uncertainty surrounding President Donald Trump’s trade policies. The company is considering raising more debt to strengthen its balance sheet and mitigate the impact of tariffs on its business. The retail sector is particularly vulnerable to trade policies, and Saks is taking steps to adapt to the changing landscape.
Frequently Asked Questions
Q: What is Saks Global Enterprises considering doing to address its financial challenges?
A: Saks Global Enterprises is considering raising more debt to strengthen its balance sheet and mitigate the impact of tariffs on its business.
Q: Why is the retail sector vulnerable to trade policies?
A: The retail sector is vulnerable to trade policies because tariffs can shrink margins and potentially upend supply chains, making it difficult for companies to operate profitably.
Q: What is the impact of the merger between Saks and Neiman Marcus on the company’s workforce?
A: The merger has resulted in layoffs, with the company trimming corporate overhead and redundant positions.
Q: What is the current state of Saks’ bonds?
A: Saks’ bonds maturing in 2029 have extended declines, falling to 64.33 cents on the dollar, according to Trace.
