Key facts
- Saks Global's Chapter 11 bankruptcy restructuring plan was approved by U.S. Bankruptcy Judge Alfredo Perez.
- The company will emerge with reduced debt and a smaller store footprint.
- Control of Saks Global will transfer to its senior lenders.
- Senior lenders provided $1 billion in new funding during bankruptcy and pledged an additional $500 million post-exit.
- A litigation trust with $20 million in initial funding was established for junior creditors.
- The company will operate with 49 luxury retail locations.
Saks Global has received court approval for its Chapter 11 bankruptcy restructuring, allowing it to emerge from bankruptcy with a significantly reduced debt load and a smaller physical presence. U.S. Bankruptcy Judge Alfredo Perez approved the plan in Houston, Texas, commending the company's efforts to stabilize its business after filing for bankruptcy on January 13 with $3.4 billion in debt. The restructuring, which was necessitated by cash shortfalls following an ill-fated merger with Neiman Marcus, will see the company's equity wiped out and control handed over to its senior lenders. These lenders provided $1 billion in new funding during the bankruptcy process and pledged an additional $500 million post-exit. Saks Global will operate with 49 luxury retail locations, including 15 Saks Fifth Avenue stores, 33 Neiman Marcus stores, and Bergdorf Goodman, a reduction from its previous 33 Saks Fifth Avenue locations. To gain the support of junior creditors, who are collectively owed about $1.5 billion, Saks Global agreed to establish a litigation trust with an initial $20 million in funding to pursue lawsuits for potential recovery.