Latest news with #BrandyRichardson
Yahoo
5 days ago
- Business
- Yahoo
Saks Clashes With Onetime Financing Partner Pathlight in Court Over HBC Deal That Cleared the Way for Neiman's Acquisition
Since Saks Global completed its acquisition of Neiman Marcus Group in December, it's had to wrestle with vendors unhappy over new payment terms and sooth the nerves of bondholders who didn't have as much collateral as they thought. Even without that, bringing the two companies together is a big project that involves cutting some $600 million in costs over time, setting up shop on Amazon, resetting the luxury department store model and more. More from WWD Saks Global Posts Q1 Top- and Bottom-line Declines, but Underscores Progress 'Transforming' the Business EXCLUSIVE: Saks Global Names Brandy Richardson CFO S&P Cuts Saks Global's Credit Rating to CC But as much as Saks wants to move forward, it is also — literally — litigating one thorny piece of its $2.7 billion deal for Neiman's. It's a legal dispute that could, if it goes to trial, shed some light on exactly how the long-suffering Hudson's Bay went under. The dispute started with the complicated negotiations that cleared the way for the Neiman's acquisition. Saks needed to restructure some debt from its partner Pathlight Capital in order to separate from its former parent company, Hudson's Bay Co., as Neiman's was brought on board. Pathlight agreed to amend a credit facility and give Hudson's Bay a $65.6 million term loan in return for a $5 million payment, which Saks made in January. But Saks also agreed to two further payments totaling $8.8 million to Pathlight if the term loan to Hudson's Bay was not repaid. Saks did not make the two additional payments, claiming that Pathlight did not support its effort to refinance the loan to Hudson's Bay, precipitating the Canadian retailer's slide into the equivalent of bankruptcy and then into liquidation. Pathlight sued Saks in New York State Court in May, claiming that it 'fully performed its obligations,' and was due its $8.8 million. In its reply to that suit on Tuesday, Saks denied Pathlight's allegations. The retailer said in connection with the acquisition it paid back $370 million in loans to Pathlight, rolled over its remaining debt into the term loan and agreed to pay more than $6 million in fees. 'Pathlight's claims are barred by its breach of the implied covenant of good faith and fair dealing,' Saks said in its response filed with the court. 'Pathlight agreed that Saks Global would not be required to pay the second and final installments to the extent that HBC had repaid the term loans. 'Pathlight, however, refused to cooperate or otherwise take any actions that would have allowed HBC to address its liquidity needs and repay the term loans,' Saks said. 'In fact, when asked for basic cooperation, Matt Williams, a Pathlight principal, at one point stated bluntly: 'I don't care. I'm not interested in being helpful.' 'Accordingly, through its actions and inactions, Pathlight has violated the implied covenant of good faith and fair dealing, including its implied duty to act in good faith to facilitate and/or not inhibit HBC's efforts to repay the term loans and thereby discharge any obligation to pay the second and final installments.' Saks also claimed that Pathlight 'fraudulently induced' Saks to enter the side agreement, knowing that 'it would never cooperate with HBC as necessary to satisfy the term loans such that the Saks Global's obligation to pay the second installment and final installment would be relieved.' While the case does not seem central to the bigger picture at Saks and its efforts to remake luxury retailing, it is something of a coda for Hudson's Bay — which had years of ups and downs and ranks as North America's oldest company, founded in 1670 as a fur trader. Hudson's Bay liquidated, but the name is due to live on. The Canadian Tire Corp. agreed to buy the intellectual property of Hudson's Bay for 30 million Canadian dollars in May. Best of WWD The Biggest Legal Battles Shaping the Fashion Industry Today PETA Asks Lululemon About Slaughterhouse Practices China's Livestreaming Star Viya Fined $210 Million for Tax Evasion Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
20-07-2025
- Business
- Fashion Network
Tailored Brands CFO steps down
Tailored Brands, Inc., the parent company of Men's Wearhouse, Jos. A. Bank, Moores, and K&G Fashion Superstore, announced that chief financial officer Brandy Richardson will depart the company on July 25 to pursue another opportunity. The Houston-based company has initiated a formal search for her successor. In the interim, Tailored Brands' finance team will report directly to John Tighe, the company's president and incoming chief executive officer. 'Since joining us in 2021, Brandy has contributed to our successful business and financial transformation. With a strong foundation in place, I'm confident that with our talented leadership and finance teams we are well-positioned to execute our future growth plans and build on our momentum,' said Peter Sachse, current Tailored Brands chief executive officer and forthcoming executive chairman. 'I appreciate Brandy's partnership and leadership over the years and wish her continued success in her next chapter.' Richardson has served as CFO of Tailored Brands since 2021. Prior to that, she spent 15 years at Neiman Marcus in various financial roles. Next, she will join Saks Global as chief financial officer on August 18.
Fashion Network
20-07-2025
- Business
- Fashion Network
Tailored Brands CFO steps down
Tailored Brands, Inc., the parent company of Men's Wearhouse, Jos. A. Bank, Moores, and K&G Fashion Superstore, announced that chief financial officer Brandy Richardson will depart the company on July 25 to pursue another opportunity. The Houston-based company has initiated a formal search for her successor. In the interim, Tailored Brands' finance team will report directly to John Tighe, the company's president and incoming chief executive officer. 'Since joining us in 2021, Brandy has contributed to our successful business and financial transformation. With a strong foundation in place, I'm confident that with our talented leadership and finance teams we are well-positioned to execute our future growth plans and build on our momentum,' said Peter Sachse, current Tailored Brands chief executive officer and forthcoming executive chairman. 'I appreciate Brandy's partnership and leadership over the years and wish her continued success in her next chapter.' Richardson has served as CFO of Tailored Brands since 2021. Prior to that, she spent 15 years at Neiman Marcus in various financial roles. Next, she will join Saks Global as chief financial officer on August 18.
Yahoo
18-07-2025
- Business
- Yahoo
Saks Global taps Neiman Marcus vet as CFO
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: Neiman Marcus Group veteran Brandy Richardson will join Saks Global as chief financial officer on Aug. 18, the luxury department store said Wednesday. She succeeds Mark Weinsten, who has been interim CFO since Saks' $2.7 billion acquisition of Neiman Marcus. Richardson spent 15 years at Neiman Marcus in various financial roles but since 2021 has served as CFO of Tailored Brands. Weinsten also served in various posts at Neiman Marcus, including as chief restructuring officer during the retailer's bankruptcy five years ago. Also on Wednesday, Tailored Brands said it has launched a search for a permanent CFO and that, meanwhile, the finance team will report to incoming CEO John Tighe. Dive Insight: In a statement, Saks Global CEO Marc Metrick said the company has 'great momentum on our journey to redefine luxury shopping' and that Richardson's experience fits with its goals. 'With her deep background in both luxury retail and finance, Brandy is the right leader to drive Saks Global's financial performance as we execute on our ambitious transformation strategy and capitalize on the significant growth opportunity within the luxury market," he said. Richardson spent 15 years of her quarter-century career at Neiman Marcus; in a statement Wednesday, she called that time 'foundational to my career.' 'I'm energized by the opportunity to return to luxury retail as part of Saks Global during this incredibly exciting time for the company,' she said. 'I look forward to helping drive the company's future success by identifying and pursuing opportunities for sustainable, long-term growth." But she will arrive with Saks Global's finances under strain. The company is grappling with a debt load, facing outstanding obligations to vendors and chasing synergies from the tie-up with its luxury rival. S&P Global Ratings analysts earlier this month called its recent $600 million financing agreement with existing bondholders 'tantamount to a default' and warned of ongoing free operating cash flow deficits. In early June, Saks Global executives told BMO Capital Markets that the company has mended fences with vendors frustrated with waiting on payments and made progress in its five-year goal to achieve $600 million in savings from its merger with Neiman Marcus. The bumpy first year or so at Saks Global has left an opening for rivals, particularly Nordstrom and Bloomingdale's, analysts say. Recommended Reading Bed Bath & Beyond, finally in Chapter 11, is going out of business Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Saks Global Posts Q1 Top- and Bottom-line Declines, but Underscores Progress ‘Transforming' the Business
Business across the luxury landscape is tough and Saks Global is feeling it. On Thursday, Saks Global released its first-quarter figures, indicating declines on both the top and bottom lines, though executives said the performance was better than expected. More from WWD EXCLUSIVE: Saks Global Names Brandy Richardson CFO S&P Cuts Saks Global's Credit Rating to CC After a Year of High-stakes Financing, Saks Turns Back to High-stakes Retailing The net loss for the period ended May 3 was $232 million, up from $184 million in the prior-year period, which did not include the Neiman Marcus Group. On a combined basis, the year-ago net loss tallied $168 million. Adjusted earnings before interest taxes depreciation and amortization, or EBITDA, was $13 million for the first quarter and compared to a loss of $1 million a year earlier, excluding NMG. Revenue was $1.6 billion for consolidated Saks Global compared to $900 million in the first quarter of fiscal 2024, which does not include NMG. On a combined basis, the year-ago revenue totaled $1.9 billion. The company planned very conservatively, is still working to improve inventory flow and its executives have been immersed in consolidation and integration efforts associated with December's $2.7 billion acquisition of the Neiman Marcus Group. To some degree, all of that distracted from what would be normal day-to-day business functions. While inventory receipts trends improved in the back half of the first quarter, revenues were still impacted by inventory availability that was below optimum levels. Saks Global buyers have been working to repair relationships with many vendors, after seasons of missed payments on receipts. 'Across Saks Global, we are making solid strides in executing on the transformation of our business. Our first-quarter results came in slightly better than expected, as we had planned for continued inventory pressures, short-term effects of our integration work and more cautious spending by core luxury consumers,' said Marc Metrick, chief executive officer of Saks Global, in a statement Thursday, when he and other Saks Global had a conference call with bondholders to discuss the results. 'Even as our momentum builds, we know there is more to do, and as we move through the second quarter and into the back half of fiscal 2025, we are investing in our inventory to meet demand and reflect the newness that will excite our customers,' Metrick said. 'To maximize the top-line potential this offers, we are laser-focused on leveraging our unparalleled data set and reach as the preeminent multibrand luxury retailer in the U.S. At the same time, we continue to work aggressively and deliberately to capture synergies from the strategic integration of our business, and we remain on track to reach our accelerated annualized cost reduction target of $600 million over the next few years.' The CEO added: 'Looking ahead, as we continue to strengthen our collaboration with our brand partners, take full advantage of our unique ability to engage luxury customers, and execute on our integration, we are confident in our ability to deliver improved and sustainable financial performance.' Gross merchandise value for consolidated Saks Global was $2 billion in the first quarter, compared with $1.2 billion a year earlier. On a combined basis, GMV in the first quarter of fiscal 2024 was $2.3 billion. The gross profit margin came in at 44 percent of revenues, 160 basis points higher than the prior year period, which the company said was driven by improved full-price selling and inventory position following the acquisition of NMG. On a combined basis, gross profit margin in the first quarter of fiscal year 2024 was 44 percent of revenues. Selling, general and administrative expenses rose to 46 percent of revenues, up approximately 120 basis points from a year earlier, driven by higher initial costs following the acquisition of NMG and the deleveraging of fixed expenses as a percentage of revenues. On a combined basis, SG&A in the first quarter of fiscal year 2024 was approximately 41 percent of revenues. Through synergies and consolidations, management expects to reduce costs by $600 million on an annual basis in the next few years. In a letter to vendors this week, a copy of which was attained by WWD from a source, Metrick wrote: 'As we shared last month, we have secured up to $600 million in new financing commitments, $300 million of which is already funded. The bond exchange, which is the next step with respect to the balance of the financing, is expected to be completed in August. This comprehensive financing package meaningfully enhances our liquidity and strengthens our financial position for the long term. Please be assured, we remain committed to meeting our financial obligations to our partners as we had outlined in February.' Saks said that, pro forma for the transaction, total available liquidity as of June 27, would have been approximately $850 million. Shortly after that the company made a $120 million interest payment on bonds and was due to start making good on its past-due bills. Total debt for the Saks Global credit group, excluding Saks Off 5th, at the end of the quarter in May was $4.4 billion, including approximately $1.1 billion in borrowings under the company's ABL, $2.2 billion senior secured notes due 2029 and the $1.25 billion non-recourse mortgage on the Saks Fifth Avenue flagship. Saks Global now has a set of fresh eyes on all this financial complexity. On Wednesday, the company named Brandy Richardson as its next chief financial officer, a crucial role in light of the luxury retailer's recent financial pivots and efforts to assure creditors and vendors that it's now on firmer financial footing. She succeeds interim CFO Mark Weinsten. Richardson has spent the majority of her career at the Neiman Marcus Group where she held several finance leadership roles of increasing responsibility over her 15-year tenure there, though she most recently worked at Tailored Brands Inc. Although Saks has been slow to pay vendors over the last couple of years, it has lately been said to be making payments to many vendors per its new schedule announced in February. The company is also in the process of making good on past-due bills from last year. Specifically, Saks notified brand partners that effective March 1, 2025, vendors will be paid 90 days from receipt of inventory and that all past-due balances will be paid in 12 monthly installments beginning this month. Vendors are not happy with the 90-day payment schedule, which is very rare in the industry and makes it more challenging for many brands and designers to sustain operations. WWD continues to hear from some vendors indicating that Saks has begun making good on its promises to fulfill payment obligations per its new payment schedule, as well as other vendors who are still to see money owed from unpaid bills. 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