Saks Global Pledges $600M to Vendors Post-Bankruptcy
Saks Global, having emerged from bankruptcy, has secured a $1 billion loan and pledged $600 million to its vendors. The move is intended to rebuild trust and stabilize supplier relationships. This capital injection may lead to Saks clearing out legacy inventory through off-price channels as it restructures its product assortments.
- The Chapter 11 bankruptcy was filed voluntarily on January 13-14, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas, stemming from unsustainable debt following the $2.7 billion acquisition of Neiman Marcus. - Court documents listed significant outstanding debts to major beauty and fragrance vendors, including Chanel (~$136 million), Beiersdorf ($22.2 million), Europerfumes ($17.3 million), The Estée Lauder Companies ($16 million), and Puig ($12 million). - The financing plan was approved by U.S. Bankruptcy Judge Alfredo Perez after Saks resolved disputes with luxury vendors like Dolce & Gabbana, clarifying that consigned inventory remains the property of the brands and could not be claimed by Saks' lenders. - This capital infusion follows a period of severely strained supplier relationships, where some vendors had ceased shipping products after experiencing an 18-month backlog of unpaid invoices. - The $1 billion in debtor-in-possession financing was provided by an ad hoc group of senior secured bondholders, including Pentwater Capital Management and Bracebridge Capital, with an additional $500 million committed upon emergence from bankruptcy. - Concurrent with the bankruptcy filing, Saks Global announced a leadership change, appointing Geoffroy van Raemdonck as the new Chief Executive Officer.
