Saks Global Secures $1 Billion Bankruptcy Loan

Court approves financing after retailer reaches deals with luxury brands

Published on Feb. 21, 2026

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A U.S. bankruptcy judge has approved a $1 billion bankruptcy financing package for Saks Global, after the retailer reached agreements with luxury brand vendors who had raised concerns about getting paid for pre-bankruptcy shipments. The financing will help Saks repair vendor relationships and renegotiate debt as it navigates the bankruptcy process.

Why it matters

Saks' bankruptcy filing in January highlighted the challenges facing traditional department stores, as the company struggled with cash shortfalls and an ill-fated merger with Neiman Marcus. The court's approval of this critical financing package is a key step in Saks' efforts to restructure and position itself for the future.

The details

The $1.75 billion bankruptcy financing package includes $1 billion in new funding as well as the refinancing of Saks' pre-existing debts. The company had initially faced pushback from luxury brands and other partners, but was able to resolve those concerns before the court hearing. Saks plans to use around $600 million of the new financing to make catch-up payments to vendors who provided goods before the bankruptcy filing.

  • On January 13, 2026, Saks Global filed for bankruptcy with $3.4 billion in debt.
  • On February 20, 2026, the U.S. Bankruptcy Court in Houston gave final approval to Saks' $1 billion bankruptcy financing package.

The players

Saks Global

A major department store retailer that filed for bankruptcy in January 2026 with $3.4 billion in debt.

Alfredo Perez

The U.S. Bankruptcy Judge who approved Saks' $1 billion bankruptcy financing package.

Chanel

A luxury fashion brand that was owed $136 million by Saks prior to the bankruptcy.

Kering

The parent company of luxury brand Gucci, which was owed $60 million by Saks.

LVMH

The parent company of Louis Vuitton, which was owed $26 million by Saks.

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What they’re saying

“It's going a long way to restoring relationships between Saks and its vendors. As everyone knows this business doesn't exist without its vendor community.”

— Ben Butterfield, Attorney representing Saks' junior creditors committee (Star-Advertiser)

What’s next

Saks plans to use the new financing to continue renegotiating its debt and rebuilding relationships with luxury brand vendors as it works to emerge from bankruptcy.

The takeaway

Saks' ability to secure critical bankruptcy financing, despite initial pushback from vendors, demonstrates the company's efforts to stabilize its operations and position itself for a potential turnaround. The case highlights the challenges facing traditional department stores in the current retail landscape.