Some of the world's biggest luxury brands are quietly exerting their influence in talks with bankrupt Saks Global, pushing the retailer for favorable creditor treatment due to Saks' reliance on thei... ...

Saks Global has outlined plans to close most of its off-price outlets as it restructures under Chapter 11, concentrating on luxury and full-price retail across its brands. The US-based luxury retailer said it plans to close most of its Saks OFF 5TH shops alongside all remaining Last Call outlets after reviewing the performance of those divisions. Subject to court approval, liquidation sales at selected Saks OFF 5TH locations and every Last Call store are scheduled to start on 31 January. A limited numb ...

Core Insights - Amazon, Chanel, and LVMH are part of a creditors committee overseeing Saks Global's bankruptcy restructuring [1] - Saks Global has filed for bankruptcy with $3.4 billion in liabilities, primarily due to cash pressures from its merger with Neiman Marcus [3] Group 1: Creditors Committee - The creditors committee consists of ten members, including luxury brands and a labor union representing Saks employees [2] - The committee represents junior creditors, with Saks covering legal expenses during the proceedings [2] Group 2: Financial Obligations - Saks has requested court approval for $337.4 million in payments to "critical" vendors, essential for maintaining inventory and customer retention [3] - The retailer owes significant amounts to luxury brands: $136 million to Chanel, $60 million to Kering, and $26 million to LVMH [3] Group 3: Financing and Objections - Saks Global has secured an initial $500 million from a $1.75 billion financing package to ensure business continuity and support transformation initiatives [5] - Amazon has objected to Saks' proposed financing plan, highlighting its $475 million equity stake and revenue from the "Saks on Amazon" partnership [4]

As WWD reported, “critical” vendors are being determined. They will receive DIP numbers setting them up for prioritized payments, as part of the pool of “go-forward” vendors. DIP numbers enable post-petition shippers to get paid on a new schedule to be determined by the court. With these DIP numbers, merchandise to Saks, Neiman’s and Bergdorf Goodman could arrive relatively quickly, since many vendors held back shipments to Saks Global last year as the luxury retailer failed to meet commitments and the busi ...

NEW YORK (AP) — An appeal for bankruptcy protection filing of the operator of Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus has left the luxury department stores' suppliers with unpaid bills and caused a rift with Amazon, one of Saks Global's minority investors. Saks Global said last week it had secured roughly $1.75 billion to help finance the company toward hoped-for profitability. The company said it would honor all customer loyalty programs, compensate vendors and pay employees while seeking a ...

In a court filing, Amazon described that investment as “presumptively worthless after Saks continuously failed to meet its budgets, burned through hundreds of millions of dollars in less than a year, and ran up additional hundreds of millions of dollars in unpaid invoices.“Amazon paid $475 million for a stake in Saks Global when the retailer bought Neiman Marcus Group in a $2.7 billion deal that ultimately left it with too much debt.During the “first day” hearing, Pérez nixed Amazon’s effort to delay approv ...

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Low inventory due to unpaid invoices and troubled communications with vendors was a major contributor to Saks Global’s disastrous 2025 and eventual bankruptcy in the early days of 2026. The company seems to appreciate this. In its Chapter 11 filing last week, Saks Global Chief Restructuring Officer Mark Weinsten told the court that its “ability to generate income is ...

Core Viewpoint - A U.S. bankruptcy judge has dismissed Amazon's attempt to block a $400 million financing deal for Saks Global Enterprises during its Chapter 11 bankruptcy proceedings [1]. Group 1: Bankruptcy Proceedings - Saks is seeking $1.75 billion to continue operations and will require further approvals from the U.S. District & Bankruptcy Court for the Southern District of Texas [2]. - Saks filed for bankruptcy with $3.4 billion in debt, citing cash shortfalls after its merger with Neiman Marcus, which hindered its ability to restock inventory [6]. Group 2: Amazon's Involvement - Amazon's investment in Saks, amounting to $475 million as part of a $2.7 billion acquisition of Neiman Marcus, is now considered presumptively worthless due to Saks' financial mismanagement [4]. - Amazon has expressed concerns over Saks' financial management, stating that the retailer has "burned through hundreds of millions of dollars in less than a year" and failed to meet their agreement [3]. Group 3: Financial Challenges - Saks is facing a "luxury liquidity crisis," with lenders debating whether to inject more capital to sustain the luxury department store amid ongoing financial difficulties [5]. - The company has struggled with payments and has requested suppliers to extend past-due bills, surprising many in the luxury retail sector [5].

Core Viewpoint - A significant legal dispute is ongoing between Amazon and Saks Global, with Amazon seeking to recover $475 million amid Saks' bankruptcy proceedings [1][6]. Group 1: Legal Proceedings - Amazon has objected to Saks Global's proposal for a $1.75 billion debtor-in-possession (DIP) loan, claiming that Saks is prioritizing other creditors over its own claims [2]. - A Texas judge has allowed $400 million in restructuring funds to be released to Saks Global, despite Amazon's objections [4][15]. - Legal experts suggest that Amazon may appeal the judge's decision, indicating that the dispute could continue [17]. Group 2: Financial Stakes - Amazon's stake in Saks Global is reportedly rendered "worthless" due to the bankruptcy plan, prompting claims of management misconduct [6]. - In 2024, Amazon acquired a 23% stake in the entity formed by Saks that purchased Neiman Marcus, which included a commitment of at least $900 million in fees for Saks-branded goods sold on Amazon over eight years [7]. - Saks Global had previously raised $600 million in funding from bondholders, which Amazon objected to, claiming it diluted its investment [9]. Group 3: Real Estate and Operations - Amazon argues that the immediate liquidation of Saks' flagship store in New York City would benefit creditors more than the current restructuring plan [3][14]. - Richard Baker, former CEO of Saks Global, recently invested $300 million in refurbishing the flagship store before stepping down [3][16]. - The flagship store's real estate is central to the dispute, as it was used to secure Amazon's investment and is seen as a valuable asset [10][9]. Group 4: Industry Perspectives - Despite Amazon's position, many in the fashion industry hope for Saks Global's success, indicating a broader investment in the brand's future [18].

Core Viewpoint - A U.S. bankruptcy judge has approved a $400 million financing deal for Saks Global Enterprises to support its operations during Chapter 11 bankruptcy, despite opposition from Amazon and other creditors [1][2]. Financing and Bankruptcy Proceedings - Judge Alfredo Perez approved the initial $400 million financing after a lengthy courtroom battle lasting 7.5 hours, with Saks seeking a total of $1.75 billion to remain operational [2]. - Further approvals will be required from the U.S. District & Bankruptcy Court for the Southern District of Texas for the complete financing plan [2]. Opposition from Creditors - Amazon and other creditors have expressed objections to the proposed financing plan, citing concerns over Saks' financial management and the potential impact on their investments [3][6]. - Amazon previously invested $475 million in preferred equity to assist Saks in acquiring Neiman Marcus for $2.65 billion, but now claims that this investment is effectively worthless due to Saks' failure to meet agreed terms [4]. Financial Performance and Obligations - Saks has reportedly failed to meet its financial targets, burning through hundreds of millions of dollars within a year and accumulating significant unpaid invoices to retail partners [5]. - Amazon's legal representatives argue that the new restructuring plan increases Saks' debt burden, further jeopardizing the investments of Amazon and other creditors [6].