Saks Global Pledges $600 Million to Vendors After Court Win

Saks Global received court approval Friday (Feb. 20) for a $1 billion bankruptcy loan, Reuters reported Friday.

The financing had been held up by vendors’ concerns that they may not get paid for goods they shipped to the luxury retailer before it declared bankruptcy, according to the report.

Saks Global resolved those concerns before the court hearing, and the judge then approved the financing, the report said.

The retailer plans to use $600 million of the new loan to pay vendors and to make as much as $330 million of those payments within two weeks, per the report.

Saks Global, which owns Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus, said Jan. 14 that it had entered Chapter 11 bankruptcy and named a new CEO, Geoffroy von Raemdonck. The company also said it secured $1.75 billion in financing.

Saks raised billions of dollars in 2024 to fund its turnaround effort, which included buying NMG, the parent company of Neiman Marcus and Bergdorf Goodman. The plan was to create a “technology-powered luxury retail company” whose investors included Amazon.

However, that deal put the company deeper in debt as it faced continued complaints from suppliers about missed payments. Saks Global raised financing over the summer of 2025, but said in a court filing that it wasn’t enough to pay back its trade partners or beef up its inventory.

In the weeks since declaring bankruptcy, Saks Global gained a court’s permission for its eCommerce unit Saks OFF 5th Digital to hire a liquidator and sell its inventory; said it would wind down the majority of its off-price operations, including most Saks OFF 5th locations and all Neiman Marcus Last Call stores; and ended its eCommerce partnership with Amazon.

On Feb. 10, Saks Global said that it planned to optimize its Saks Fifth Avenue and Neiman Marcus store footprint and that in the first phase of that project, it would close eight Saks Fifth Avenue locations and one Neiman Marcus location.

The company said it would also close the majority of its standalone Fifth Avenue Club personal styling suites and transition Horchow.com to the Home category on NeimanMarcus.com.