Sometimes you buy something expensive, and then immediately wonder if you can afford it. That's apparently where Saks Global Enterprises finds itself right now. The company dropped $2.65 billion on Neiman Marcus barely a year ago, and now lenders are huddling to figure out whether they should pump more money into the struggling luxury department store empire or start preparing for bankruptcy proceedings.
This puts executive chairman Richard Baker squarely back in the hot seat. Baker has a well-earned reputation for making audacious real-estate-style bets on retail businesses. Some have worked out nicely. Others have crashed into bankruptcy and shuttered stores. Critics are now firmly placing the Saks-Neiman merger in the latter category. Moody's wasn't shy about flagging the acquisition loans as exceptionally risky from the start, expressing serious doubts about whether the combined entity could actually succeed.
The original playbook sounded reasonable enough: merge Saks, Neiman Marcus, and Bergdorf Goodman, then revive them through cost cuts, technology upgrades, and negotiating better terms with vendors. That's not exactly what happened. Instead, Saks started falling behind on payments, which naturally made vendors nervous about shipping more merchandise. Then came the really awkward part—Saks asked suppliers if they'd mind waiting a full year to get paid on overdue bills. That's not typically how luxury retail is supposed to work.
Bankruptcy Watch
Elsewhere in distressed situations, First Brands Group kicked off a sale process as part of its multibillion-dollar Chapter 11 bankruptcy, looking for a buyer who can help it emerge from protection.
Taste of Belgium, the restaurant group known for its waffles, filed for Chapter 11 bankruptcy but insists this is about staying alive, not closing down. The company has already shuttered eight locations in recent years, including its original restaurant, but plans to keep operating at least three spots. Founder Jean-François Flechet pointed to the usual suspects: lingering pandemic damage, inflation, changing consumer dining habits, and those relentless delivery app fees that eat into margins.
Deal Updates and Setbacks
Soho House (SHCO)'s plan to quietly transition back to private ownership ran into an uncomfortable problem. Lead investor MCR Hotels admitted it can't come up with its full $200 million equity contribution on the original timeline. This is particularly awkward considering MCR led the deal just months ago to take the members-only club private in a transaction valued at $2.7 billion. Shareholders are still expected to approve the take-private arrangement, but whether MCR can eventually deliver the cash remains uncertain.
Taiwan-based biotechnology company SL Bio Ltd. filed a Form F-4 with the U.S. Securities and Exchange Commission to move forward with its merger with Horizon Space Acquisition II Corp. (HSPT), a SPAC deal that would bring the company public without going through a traditional IPO.
Snowflake (SNOW) has offered to acquire Observe, a San Mateo, California-based company, according to reporting from TechCrunch.
Rio Tinto (RIO) confirmed it's in preliminary discussions with Glencore (GLNCY) about a potential merger involving some or all of their operations, possibly structured as an all-share acquisition through a court-approved scheme of arrangement. The mining giant emphasized that nothing has been formally offered yet, the terms remain unclear, and it's keeping its options open on structure and consideration. Under UK takeover regulations, Rio Tinto has until February 5 to either announce a formal offer or walk away. If this deal actually happens, it would be the mining industry's biggest ever, creating a combined entity with an enterprise value exceeding $200 billion.
Pharmaceutical powerhouse Merck & Co. Inc. (MRK) is reportedly in discussions to acquire cancer drugmaker Revolution Medicines Inc. (RVMD) in a deal potentially valued between $28 billion and $32 billion. According to reporting from the Financial Times, the deal isn't finalized yet and any potential agreement is still weeks away.
Chevron Corporation (CVX) and Quantum Capital Group are reportedly preparing a joint bid for roughly $22 billion worth of Russian oil giant Lukoil's international assets. If this deal closes, Chevron and Quantum would split a portfolio that includes oil and gas production operations, refining facilities, and more than 2,000 fuel stations spread across Europe, Asia, and the Middle East.
Mobileye Global Inc. (MBLY) agreed to acquire Mentee Robotics, an AI-focused humanoid robotics company, for $900 million. The purchase price includes approximately $612 million in cash plus up to roughly 26.2 million Mobileye Class A shares, with adjustments for any Mentee stock options that vest before closing. The transaction is expected to wrap up this quarter.
D-Wave Quantum Inc. (QBTS) agreed to buy Quantum Circuits Inc. for $300 million in stock and $250 million in cash. The company says this deal brings together two important quantum computing approaches under one roof, strengthening D-Wave's position across the broader quantum computing market.
Deals That Closed
Compass, Inc. (COMP) stock jumped on Friday after the company announced it completed its $1.6 billion all-stock merger with Anywhere Real Estate Inc., creating a $10 billion real estate powerhouse now called Compass International Holdings. The combination brings together Compass' technology-driven brokerage platform, marketing capabilities, and agent network with Anywhere's globally recognized real estate brands and diversified businesses spanning franchising, title, escrow, and relocation services.
Nike (NKE) sold its NFT subsidiary RTFKT to an undisclosed buyer, offering more evidence that non-fungible tokens might have been a passing trend rather than the future of digital ownership.
