Saks Global Secures Final Bankruptcy Funding
Amid ongoing retail sector shakeups, Saks Global has secured final approval for its bankruptcy funding. The development follows the recent move of former Saks executive Dayna Ziegler to Macy's, highlighting significant leadership and financial realignments within major department store retailers.
- The approved financing package totals approximately $1.75 billion, which includes $1 billion in debtor-in-possession funding to maintain operations and an additional $500 million scheduled upon emergence from bankruptcy. - The Chapter 11 filing on January 13, 2026, was precipitated by what the company's chief restructuring officer called an "unsustainable" capital structure following the $2.7 billion acquisition of Neiman Marcus in late 2024. - A key trigger for the bankruptcy was a missed $100 million interest payment in December 2025, which was tied to the debt taken on for the Neiman Marcus deal. - Prior to the final funding approval, luxury vendors like Dolce & Gabbana had objected, concerned that Saks' lenders would gain rights to millions in merchandise supplied on consignment. Saks has since allocated $600 million of the new loan to pay vendors, some of whom had ceased shipments in 2025 due to missed payments. - As part of the restructuring, the company is closing the majority of its Saks Off 5th locations, with only 12 remaining to function as clearance outlets for its full-price luxury stores. The separate e-commerce entity, saksoff5th.com, is also being liquidated. - The bankruptcy follows a significant downturn in performance, with the company's Q2 2025 revenue falling over 13% to $1.6 billion and inventory levels dropping 9% year-over-year. - To guide the company through the restructuring, former Neiman Marcus CEO Geoffroy van Raemdonck was appointed CEO of Saks Global, following the departure of Marc Metrick in early January 2026.
