Saks Global Secures $1.75B Bankruptcy Funding

Retailer aims to stabilize finances, settle vendor debts, and refocus on luxury retail amid Chapter 11 proceedings.

Published on Mar. 2, 2026

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Saks Global has received final court approval for a $1.75 billion debtor-in-possession (DIP) financing package that will allow the company to pay off some past-due vendor bills, close underperforming stores, and refocus on its core luxury retail business as it navigates the Chapter 11 bankruptcy process.

Why it matters

The DIP financing is a critical step for Saks Global to stabilize its operations and relationships with key brand partners as it works to restructure and emerge from bankruptcy. The company's ability to pay down vendor debts and streamline its store footprint will be key to rebuilding trust with its luxury suppliers and positioning itself for a successful turnaround.

The details

The $1.75 billion DIP package, provided by the company's bondholders, will unlock $330 million in funds that will go towards paying off some of Saks Global's past-due bills to vendors within the next two weeks. The company has already executed or is close to executing new trade agreements with over 100 of its brand partners, a group that was hit hard as Saks fell behind on payments prior to the bankruptcy filing. Saks is also ahead of schedule in closing 57 of its Saks Off 5th discount stores and shuttering 9 full-line locations as part of its restructuring efforts.

  • On January 14, 2026, Saks Global filed for Chapter 11 bankruptcy protection.
  • On February 20, 2026, a federal judge gave final approval to Saks Global's $1.75 billion DIP financing package.

The players

Saks Global

A luxury retail company that operates the Saks Fifth Avenue and Saks Off 5th chains. Saks Global filed for Chapter 11 bankruptcy in January 2026.

Geoffroy van Raemdonck

The chief executive officer of Saks Global, who is working to restructure the company and return it to profitability.

Debra Sinclair

The attorney from Willkie Farr & Gallagher representing Saks Global in the bankruptcy proceedings.

Benjamin Butterfield

The Morrison & Foerster attorney representing the unsecured creditors committee in the Saks Global bankruptcy case.

Amazon

An investor in Saks Global's parent company Neiman Marcus Group, which had objected to the DIP financing but has since dropped its opposition.

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What they’re saying

“As of today, we have more than 100 brands that have either executed or are coming close to executing trade agreements with the company. Our brand partners … are at the heart of our business and we're generating great momentum with them.”

— Debra Sinclair, Attorney, Saks Global (wwd.com)

“This facility provides over a billion dollars in new liquidity to the company. Nearly $600 million of that is slated to go out to clean up pre-petition claims on the vendors [including the $330 million set to go out over the next two weeks].”

— Benjamin Butterfield, Attorney, Unsecured Creditors Committee (wwd.com)

“From the committee's perspective, we think vendors should feel very comfortable doing business with this company going forward.”

— Benjamin Butterfield, Attorney, Unsecured Creditors Committee (wwd.com)

What’s next

Saks Global is expected to continue negotiating agreements with vendors and finalizing its critical vendor list as it works to emerge from bankruptcy. The company will also need to close the 57 Saks Off 5th stores and 9 full-line locations as part of its restructuring plan.

The takeaway

The approval of Saks Global's $1.75 billion DIP financing package represents a significant milestone in the company's efforts to stabilize its operations and rebuild relationships with key luxury brand partners as it navigates the Chapter 11 process. While challenges remain, the infusion of new liquidity and the ability to pay down past-due vendor bills puts Saks on a path to refocus on its core luxury retail business.