Overview
- A bankruptcy judge authorized Saks Off 5th Digital to hire a liquidator to sell its own inventory, with the online unit overseen by an independent manager and chief restructuring officer and expressly separate from store merchandise.
- The e-commerce arm is also exploring alternative transactions, according to statements made in court.
- Saks Global filed for Chapter 11 this month with roughly $1.75 billion in financing and won approval to access about $500 million initially despite objections from a minority investor.
- Amazon, which invested $475 million in the company, told the court its equity is now "presumptively worthless" and warned it may seek stronger remedies over the financing plan.
- Suppliers report unpaid invoices and many have paused shipments, stores show merchandise gaps alongside steep promotions, and the company is evaluating store closures with Off 5th locations viewed as particularly exposed.