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Pathlight Capital sues Saks Global over $8.8 million restructuring fees

The suit accuses Saks of breaching its advisory agreement after securing $350 million to bolster its balance sheet

Hudson's Bay had exempted six stores from clearance sales in the hopes of finding a buyer or investor, but later added those stores, marking the demise of the 355-year-old retail chain.
A Saks Fifth Avenue sign is shown in San Francisco, Sunday, March 17, 2024. (AP Photo/Jeff Chiu)

Overview

  • Pathlight Capital filed a complaint in New York Supreme Court on May 21, claiming Saks Global owes $8.8 million in unpaid fees tied to debt restructuring of Hudson’s Bay.
  • The lender agreed in December 2024 to release Saks Global from Canadian loan obligations in exchange for a $13.8 million advisory fee payable in three installments.
  • Saks Global halted two $4.4 million payments in March and April, alleging Pathlight refused to support further restructurings that might have saved Hudson’s Bay.
  • Hudson’s Bay filed for creditor protection on March 7 with $1.1 billion in debt and completed liquidation of its final six Canadian stores in April, ending a 355-year history.
  • Saks Global recently secured $350 million in financing to strengthen its operations as the lawsuit proceeds and both sides prepare for court–ordered discovery.