Renta 4 | The luxury retailer Saks has filed for Chapter 11 bankruptcy protection in the United States, with the aim of facilitating the restructuring of its debt, which is estimated to exceed €700 million.
Saks’ creditors include leading global luxury companies such as Chanel, Zegna, LVMH, Christian Louboutin, The Estée Lauder, Giorgio Armani, Google, Burberry and Dolce & Gabbana. In the case of Puig Brands, the debt would amount to approximately $12 million.
Saks Global has assured that all its physical stores and e-commerce platforms remain operational, continuing to serve its customers without interruption. In addition, before filing for bankruptcy, Saks obtained $1.75 billion in new financing, of which approximately $1 billion will be used to finance operations during Chapter 11, while the remaining $750 million will be available once the company completes its restructuring, expected by the end of this year.
Assessment: Negative news but with no significant impact on the share price as it is a relatively small amount (<1% of net debt and sales) and there is still a possibility of collection.
We reiterate our Overweight recommendation with a target price of €22.10 per share.
