Latest news with #SaksOff5th
CTV News
5 days ago
- Business
- CTV News
B.C. billionaire wanting Hudson's Bay leases says landlord concerns are ‘misguided'
Billionaire Ruby Liu, centre, poses with her staff while holding a set of keys to a former Hudson's Bay-owned Saks Off 5th department store during a "handover ceremony" at Tsawwassen Mills shopping mall that she owns, in Tsawwassen, B.C., on Thursday, June 26, 2025. THE CANADIAN PRESS/Darryl Dyck TORONTO — A B.C. billionaire who wants to buy some Hudson's Bay leases is pushing back on landlord claims that she won't be able to run a successful business in their spaces. In new court documents, Ruby Liu says the concerns are misguided and she's so confident in her plan that she will personally guarantee the first year of rent she'll have to pay to them. Liu wants to buy 25 former Bay leases to turn them and three others she bought at malls she owns into a new department store with entertainment, dining and recreation spaces. Landlords say their leases don't allow for such uses and even if they did, Liu's timelines and budgets are too unrealistic given the amount of work and repairs their properties need. Liu says she doesn't think the spaces need all of the repairs landlords are demanding because the Bay was operating in the spaces without the renovations. If they are necessary, she says her company will do them, even if they exceed her current budget. To counter landlord assertions that she doesn't have suppliers willing to commit merchandise to her stores, she provided the court with letters from brands like Conair and Northern Reflections that say they are willing to work with her. This report by The Canadian Press was first published Aug. 13, 2025. Tara Deschamps, The Canadian Press
Miami Herald
09-08-2025
- Business
- Miami Herald
Saks faces vendor backlash over unpaid invoices
Saks is facing criticism as several vendors allege the company has failed to pay long-overdue invoices despite the promised deadline having already passed. Renowned as a major player in luxury retail, Saks operates high-end department stores under the Saks Fifth Avenue and Saks Off 5th banners. In December 2024, the company completed its acquisition of Neiman Marcus Group for $2.7 billion, expanding its portfolio by adding Neiman Marcus and Bergdorf Goodman brands. Don't miss the move: Subscribe to TheStreet's free daily newsletter The acquisition was intended to turn Saks into a luxury retail powerhouse and improve its financial standing. Instead, it has become an expensive nightmare. Related: Iconic brand finds buyer after Chapter 11 bankruptcy filing Before the acquisition, Saks had been under fire for delayed payments to vendors. However, the company's CEO Marc Metrick stepped in to ease concerns, reassuring that the deal would allow it to settle outstanding debts since the combined portfolio was estimated to be worth $7 billion. Image Source: Shutterstock The uncertain state of the economy and a slowdown in consumer spending, which has contributed to an ongoing luxury slump, have buried Saks in even more debt. Recent tariff implementations and acquisition-related costs have only added to its many challenges. So much so that in the first quarter of 2025, Saks' revenue dropped nearly 16% year over year, with its net loss increasing by 38%. Related: Popular retailer flags major trend that could save luxury fashion In February, Saks announced plans to repay vendors for overdue payments in 12 installments beginning in July, aiming to rebuild relationships with its suppliers and increase inventory. Three months later, the company secured $350 million in financing commitments, bringing its total available liquidity to around $700 million. "Along with synergy realization and business performance exceeding our plans, we are well-positioned to continue delivering for all of our stakeholders, including our brand partners," said Metrick in a press release. Despite the reassurance, June has come and gone, and vendors claim the company has not upheld its commitment. Sunday Riley Skincare emailed Saks this month, accusing the company of failing to make the promised payments. The brand warned that unless it is paid in full, the situation will be escalated to its legal department, as reported by RetailDive. More Retail News: TJ Maxx shares good news with its devoted customersBest Buy makes major store change with surprising new retail partnerJCPenney strikes massive deal for 119-store sale Representatives of other anonymous brands have also alleged that Saks has implied that they will be dropped as vendors if they continue to complain. At least one brand has reportedly stopped shipping products to Saks completely and has given up on receiving payments. Saks has yet to issue any official statements regarding the accusations, but it remains to be seen whether the claims are factual. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CBC
05-08-2025
- Business
- CBC
YM Inc. to take over Saks Off 5th lease in Winnipeg outlet mall
Clothing retailer YM Inc. has struck a deal to buy leases of five former Hudson's Bay-owned locations. The deal, valued at $5.03 million, includes the now-empty Saks Off 5th space in Outlet Collection Winnipeg. Following the closure of Hudson's Bay stores in June, along with Saks Fifth Avenue and Saks Off 5th stores, it's still unclear how the other empty spaces left behind within the malls will be filled.
CTV News
30-07-2025
- Business
- CTV News
Hudson's Bay asks court to force landlords to let B.C. billionaire take over leases
Billionaire Ruby Liu, centre, poses with her staff while holding a set of keys to a former Hudson's Bay-owned Saks Off 5th department store during a "handover ceremony" at Tsawwassen Mills shopping mall that she owns, in Tsawwassen, B.C., on Thursday, June 26, 2025. THE CANADIAN PRESS/Darryl Dyck TORONTO — Hudson's Bay has solidified its faith in a controversial deal to sell leases to a B.C. billionaire by asking a court to force landlords critical of her to let her move in. A motion filed by the collapsed department store late Tuesday asked the Ontario Superior Court to reassign 25 of its leases to Ruby Liu. Fifteen of the leases cover properties in Ontario, including Fairview Mall, Sherway Garden, Bayshore Shopping Centre and Bramalea City Centre. The remaining 10 are split evenly between Alberta and B.C. and include West Edmonton Mall, CF Market Mall and Guildford Town Centre. The group of leases will cost Liu about $69 million, minus a litany of fees she has to pay as a condition of taking them on, the latest documents show. The Bay thinks Liu should get the leases because the deal will help it repay creditors, offer jobs to former Bay employees and fill vacant properties so landlords avoid 'the visual and economic blight of a 'dark' or empty store for a significantly prolonged period.' If landlords aren't forced to accept Liu, the company warns 'significant benefits and value creation … will be lost' and it will have to turn its former stores back over to landlords. The filing sets up the Bay for a fight that will pit it against some of the country's most prominent landlords, including Cadillac Fairview, Oxford Properties and Primaris. If it wins, Liu estimates the retailer will make a $50 million dent in the roughly $1.1 billion in debt it had when it filed for creditor protection in March. That process led the Bay to close all of its stores and start soliciting buyers for its leases. One dozen bidders made offers for 39 properties. Liu was designated the winner of the bulk of them. The Vancouver-based entrepreneur made her fortune in Chinese real estate and owns three B.C. malls, including the Woodgrove Centre and Mayfair Shopping Centre, which she is willing to sell to advance her push for the Bay leases. Liu inked two deals to buy a collective 28 leases that belonged to the Bay and its sister Saks stores in May. The first deal – for three leases at malls Liu owns – sailed through court with no opposition. The second became fraught shortly after it was announced, when landlords began meeting with Liu and found she had little information to share about her bid to open a new department store named after herself and replete with retail, dining, entertainment and recreational spaces. A package Liu sent landlords in early June, which was obtained by The Canadian Press, showed she thought she was capable of opening up to 20 stores within just 180 days of signing leases. It offered a vague financial budget and mentioned hiring efforts and meetings with prospective suppliers but did not name the potential vendors. Court records filed on Tuesday showed the initial package and meetings with Liu left Cadillac Fairview 'with the strong impression that Ms. Liu is making this up as she goes.' Primaris REIT felt her plans were 'predicated upon hope, optimism and not on experience.' New plans filed alongside the Bay's motion show Liu has taken another stab at a business roadmap. This time around she's budgeting $375 million for her venture and is looking at opening three tiers -- flagship, platinum and standard -- of a new, self-named department store. Though she has spoken repeatedly about putting dining, entertainment and recreational spaces into her stores, she promises to take on the leases 'as is.' 'Much has been made of my public comments around the retail concepts that I believe may appeal to modern shoppers,' Liu writes. 'However, this should not be taken as any intention to ignore the terms of the lease.' Liu says $120 million will be invested on 'overdue' repairs to roofs, HVAC systems, washrooms, elevators and escalators and $135 million on initial inventory. She projects her plan will create at least 1,800 new jobs and by 2027, generate more than $420 million in annual sales. Despite the landlords' opposition to the assignment of the leases to Liu, she says she is 'confident that my growing team (which will include former HBC executives) will be able to build fruitful and lasting relationships with them and their communities.' Liu's filing was made after 50 pages she sent to judge Peter Osborne – against the Bay's advice – were entered into the court record. They included two notes to Osborne sent a day apart that were appended with letters the Bay's lawyers and landlord lawyers sent to her and her counsel. The records show the Bay's lawyers heeded early criticism from landlords and started pressing Liu to prepare a more in-depth plan. They urged Liu to hire the retailer's former CEO Liz Rodbell as a consultant and KPMG as a financial adviser and bring back Miller Thomson as legal representation and offered to shave $3 million off the price of the leases, if she did so. The new business plan Liu filed Tuesday makes no mention of Rodbell or Miller Thomson but lists KPMG as a potential tax adviser and auditor. This report by The Canadian Press was first published July 29, 2025. Tara Deschamps, The Canadian Press
Yahoo
29-06-2025
- Business
- Yahoo
Saks Global Bolsters Its Finances, Secures $600 Million in Commitments
Saks Global has bolstered its finances, securing $600 million in financing commitments from a majority of its existing bondholders, the luxury retailer said Friday. The new financing should help ease concerns among bondholders and vendors that Saks Global would not have the wherewithal to sustain its operations — although the company is working with a $4 billion debt load as it seeks to push through a major reset in its business model. Saks Global includes the Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th stores and e-commerce businesses. For the year ended Feb. 1, Saks said revenues totaled $3.8 billion. That included about $432 million in sales from Neiman Marcus Group, which was acquired on Dec. 23. Incorporating Neiman's business for the whole year, sales fell 10 percent to $7.3 billion. More from WWD Saks Global Extends Partnership With NuOrder to Neiman Marcus and Bergdorf Goodman Saks Global Report: Intent to Spend on Luxury Softens Saks Said to Pursue Joint Venture to Expand Bergdorf Goodman Saks has a $120 million interest payment due on Monday on its senior secured bonds — the first interest payment on the $2.2 billion in bonds issued just before Saks bought Neiman Marcus Group in December at a $2.7 billion enterprise value. The transaction detailed on Friday includes a $400 million first-in, last-out (FILO) asset-based credit facility, with $300 million funded right away and an additional $100 million to be funded upon completion of a bond exchange. A FILO loan is added to an existing debt structure, where the new lender gets repaid first, even though they provided money after the others. It's considered a quick, efficient way to build incremental liquidity into a business. The transaction also includes $200 million in additional commitments subject to certain conditions. A majority of bondholders have committed to participate in the exchange, which will launch shortly. Marc Metrick, chief executive officer of Saks Global, said in a statement: 'Today's announcement reflects the outcome of productive engagement with our bondholders and their continued confidence in our business and strategic direction. This comprehensive financing package meaningfully enhances our liquidity and strengthens our balance sheet. Coupled with the early realization of synergies and improving inventory position, we are primed to execute on our transformation strategy, invest in key growth initiatives, and reinforce our leadership as the world's largest multi-brand luxury retailer.' Saks said it would be entering into this transaction in lieu of the financing commitments it announced last month with SLR Credit Solutions. Previously, the company said it secured $350 million of financing commitments from SLR, consisting of a $300 million FILO facility. PJT Partners and BofA Securities Inc. are serving as financial advisors to Saks Global in connection with the transaction while Willkie Farr & Gallagher and Kirkland & Ellis are serving as legal counsel. Just last week, Saks Global moved to further integrate its operations, widening the role of Emily Essner, president and chief commercial officer, and promoting Mary McGreevy to chief stores officer for Saks Fifth Avenue and Neiman Marcus. The company has been integrating the Saks Fifth Avenue and Neiman Marcus store teams into one central commercial organization. Bergdorf Goodman remains separate. With the change, all customer-facing functions for Saks Fifth Avenue and Neiman Marcus, including brand partnerships and buying, merchandise planning, marketing, digital, commercial analytics and customer insights — and now store experience as well — will be part of the Saks Global commercial organization, led by Essner. 'We are continuing to execute on our integration strategy, and with that, we are creating a more unified approach in how we serve customers,' Metrick said a week ago. 'By integrating our store teams into the commercial function, we will be better positioned to capitalize on opportunities to better serve our customers, driving growth for our business and that of our brand partners.' Essner reports to Metrick. Through the integrations of its operations, Saks Global, while looking to operate more efficiently and respond to trends and customer needs faster, is seeking to cut about $600 million in annual costs. This spring, approximately 550 workers were terminated, cutting 3 percent of Saks Global's total workforce following reductions made earlier in the year. Another 500 jobs were also eliminated when Saks closed an owned fulfillment center in Tennessee recently. The integrations will help reduce costs. As a result of the integration, Larry Bruce, president of stores for Saks Fifth Avenue and Neiman Marcus, left the company. Saks Global has begun paying its bills to vendors, many of which were left unpaid for many months, though some are still awaiting payments from orders received this year. Unpaid orders from last year Saks has promised to begin paying in monthly installments beginning in July. 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