Saks Global Secures $1B Bankruptcy Loan Approval

Luxury retailer reaches deals with key suppliers and landlords to access new financing package.

Published on Feb. 23, 2026

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Saks Global has received court approval for a $1 billion bankruptcy loan after resolving payment disputes with luxury brands like Chanel, Dolce & Gabbana, and LVMH, as well as landlords and Amazon. The $1.75 billion funding package will help stabilize supplier relationships and give Saks time to restructure its $3.4 billion in debt following cash flow issues tied to its merger with Neiman Marcus.

Why it matters

Saks' ability to secure new financing is critical to its survival as it navigates the Chapter 11 bankruptcy process. The retailer plans to focus on its luxury and full-price businesses while shutting most of its off-price outlets, a strategic shift that requires rebuilding supplier and landlord trust.

The details

The bankruptcy court approval came after Saks reached settlements with key luxury brands, landlords, and Amazon, its online retail partner. Several vendors had initially opposed the loan, arguing lenders could claim ownership over consignment inventory. Saks and lenders confirmed consignment goods would remain the property of brands. The financing will also refinance existing debt and expand Saks' asset-based lending facility.

  • Saks filed for Chapter 11 bankruptcy protection on January 13, 2026.
  • The $1.75 billion funding package was authorized by US Bankruptcy Judge Alfredo Perez during a hearing in Houston.
  • Nearly $600 million of the facility will be used to pay suppliers for pre-bankruptcy goods within two weeks.

The players

Saks Global

A luxury retail company that recently merged with Neiman Marcus and is now navigating Chapter 11 bankruptcy proceedings.

Alfredo Perez

The US Bankruptcy Judge who authorized Saks' $1.75 billion funding package during a hearing in Houston.

Chanel

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

Dolce & Gabbana

A luxury fashion brand that was one of the key suppliers Saks reached a deal with as part of the bankruptcy proceedings.

LVMH

A luxury goods conglomerate that was owed $26 million by Saks prior to the bankruptcy filing.

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What they’re saying

“Nearly $600m of the facility will be used to pay suppliers for goods delivered before the bankruptcy filing.”

— Ben Butterfield, Counsel to a court-appointed committee representing Saks' junior creditors (Reuters)

What’s next

As part of its restructuring, Saks Global plans to shut most of its off-price outlets while operating under Chapter 11, focusing instead on luxury and full-price retail across its brands.

The takeaway

Saks' ability to secure new bankruptcy financing and reach deals with key suppliers and landlords is a critical step in its efforts to restructure and emerge from Chapter 11 as a more focused luxury retailer. The retailer's strategic shift away from off-price outlets reflects the challenges traditional department stores face in the evolving retail landscape.