Saks Global wins court approval for $400 million rescue financing

A Houston bankruptcy court granted Saks Global Enterprises immediate access to $400 million in debtor-in-possession financing, a first tranche of a proposed $1.75 billion rescue package intended to stabilize the operator of Saks Fifth Avenue, Bergdorf Goodman and the U.S. assets of Neiman Marcus. U.S. Bankruptcy Judge Alfredo Perez approved the infusion after a contentious hearing that stretched roughly 7.5 hours late into the night.

Saks filed for Chapter 11 on Jan. 14–15, 2026, listing roughly $3.4 billion in liabilities. Company officials told the court the DIP funds were essential to pay vendors, restock stores and cover payroll for about 17,000 employees. Chief restructuring officer Mark Weinstein warned the company would be “dead in the water” without the new cash, while counsel Debra Sinclair said all stores remain “open for business.” Filings and attendant reporting identified roughly $337 million owed to critical suppliers, including Chanel and other luxury brands, a shortfall that has constrained inventory replenishment.

The initial authorization came over the objection of Amazon.com Inc., a major investor that contributed $475 million of preferred equity in 2024. Amazon argued the proposed financing structure would render its preferred investment “presumptively worthless,” and accused Saks of having “continuously failed to meet its budgets, burned through hundreds of millions of dollars in less than a year, and ran up additional hundreds of millions of dollars in unpaid invoices owed to its retail partners.” In filings Amazon said Saks also breached investment terms by failing to create a “Saks on Amazon” sales channel. Amazon preserved the right to pursue “more drastic remedies,” including seeking an examiner or trustee, if its concerns are not addressed.

Judge Perez concluded that the immediate liquidity was necessary to preserve the operating business and to give the company a chance to seek a comprehensive restructuring. The court’s nod permits Saks to stabilize near-term operations but requires the company to return to the Southern District of Texas to seek final approval of the full $1.75 billion financing package.

The dispute underscores a high-stakes contest over collateral priorities and creditor rights that will shape the restructuring outcome. DIP lenders typically seek superpriority claims and priming liens to protect their advances, a structure that can dilute or subordinate existing equity and unsecured claims. For Amazon, which holds a substantial preferred stake, the priming nature of new financing heightens the risk that its investment will be wiped out or materially impaired.

Market implications extend beyond the company’s balance sheet. A liquidity lifeline preserves jobs and customer access to inventory at a time when luxury retailers are navigating cautious consumer spending and tighter financing conditions. For the broader restructuring market, the case highlights how strategic investors can pivot from backers to adversaries when rescue financings alter priority rules.

Saks and its advisers framed the DIP as a bridge to a restructuring that could allow the retailer to emerge “as a stronger company” later in the year, but that outcome depends on securing final court approval, resolving creditor disputes and addressing substantial supplier claims. With the initial runway approved, the coming weeks will determine whether lenders, creditors and key investors reach terms that balance immediate operational needs with longer-term recovery for stakeholders.