S&P: Saks unaffected

Standard & Poor's said Saks Inc.'s rating is not affected by (BB/negative/--) press reports suggesting that it is contemplating the separation of its upscale department store business from its traditional or moderate department store business, although the reports are not acknowledged by Saks' management.

Saks is the result of the 1998 acquisition of Saks Fifth Avenue Enterprises by Proffitts Inc.

S&P said the combined company has experienced operating difficulties since that time, and an earlier attempt in 2000 to split up the company failed due to unfavorable equity markets, as well as difficulties in structuring the balance sheet so that bondholders would be protected from a possible loss in asset protection.

Saks' traditional stores ($3.6 billion in 2003 revenue) have generally lagged competition, according to S&P.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.