Saks, after acquiring Neiman Marcus for $2.7bn and issuing $2.2bn in bonds, struggles to meet a $120mn interest payment, prompting a complex $600mn fundraising that prioritizes certain bondholders, leading to “creditor-on-creditor violence.” With over $5bn in debt, Saks aims for $1bn EBITDA by 2026, but faces significant challenges in a floundering retail sector.
Explain It To Me Like I’m 5: Saks, a big store, tried to borrow money to buy another store but now has to figure out how to pay back its debts without making its lenders angry.
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