Overview
- Saks Global initially filed for Chapter 11 on Jan. 13 after a troubled merger left it unable to replenish inventory and saddled it with roughly $3.4 billion in debt.
- U.S. Bankruptcy Judge Alfredo Perez formally approved the company’s Plan of Reorganization on Friday, clearing the way for Saks Global to exit bankruptcy in the coming weeks.
- Under the plan senior lenders agreed to provide $1 billion of new financing during the case and pledged an additional $500 million after emergence, and pre‑petition equity will be canceled as control transfers to those lenders.
- The company will emerge much smaller, operating a 49-store luxury portfolio after closing most off‑price locations and many Saks Fifth Avenue units, and it says vendor ties and inventory have been materially repaired.
- Junior creditors owed about $1.5 billion accepted a litigation trust with $20 million in initial funding as their only meaningful recovery route, while the company projects nearly 75% less debt and long‑term targets that remain company forecasts to watch.