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2w ago

Judge Approves Initial Cash for Saks Global Bankruptcy as Amazon Objects

The retailer says stores will stay open under $1.75 billion in committed funding during a restructuring led by Geoffroy van Raemdonck.

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Shoppers outside Macy's flagship store in New York, US, on Sunday, Dec. 8, 2024. US consumer borrowing increased in October by more than forecast, reflecting the largest advance in credit-card balances since mid-2022.
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Overview

  • A Houston judge approved the initial $400 million draw from Saks Global’s $1.75 billion debtor‑in‑possession package at the first‑day hearing.
  • Amazon, a $475 million investor, objected to the financing, called its stake presumptively worthless, and reserved rights to seek remedies such as an examiner or trustee.
  • Saks Global is seeking to restructure about $3.4 billion in secured debt and is reviewing store footprints, with court papers indicating the Off 5th e‑commerce arm may be liquidated absent a better alternative.
  • The company says Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman locations remain open, with employee pay, supplier obligations, and customer programs to be honored during the case.
  • Court filings cite the 2024 Neiman Marcus acquisition, vendor payment delays, and inventory shortfalls as key drivers of the liquidity crisis that followed a missed interest payment in December.