Saks Global Secures $500 Million Exit Financing, Plans Summer Bankruptcy Emergence

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4.7.2026

Quick Facts

Saks Global secured $500 million in exit financing and filed reorganization plan, expects to emerge from Chapter 11 this summer
Company will close 24 department stores by spring, leaving 13 Saks Fifth Avenue locations and 32 Neiman Marcus stores
More than 650 brands resumed shipping merchandise, releasing $1.5 billion in retail receipts representing 90% of expected Q1 inventory

Saks Global has secured $500 million in exit financing from senior secured bondholders and filed its reorganization plan with bankruptcy court, marking significant progress toward emerging from Chapter 11 this summer.

The luxury retailer, which filed for bankruptcy after acquiring Neiman Marcus for $2.7 billion in 2024, obtained the final $300 million tranche of its $1.75 billion financing package. The company had $3.4 billion in debt at the time of filing.

CEO Geoffroy van Raemdonck said the company is “on track to achieve $600 million in synergies over the next five years, reflecting an additional $100 million versus our original target.” The five-year business plan targets double-digit adjusted EBITDA margins.

The retailer will close 24 department stores by spring, leaving 13 Saks Fifth Avenue stores including its Manhattan flagship, 32 Neiman Marcus locations, and Bergdorf Goodman. Saks Off Fifth will shrink to 12 locations focused on selling residual inventory.

Vendor relationships show strong recovery. More than 650 brands resumed shipping, up from fewer than 400 weeks earlier. Chanel tops the creditor list, owed $136 million, followed by major luxury firms including Kering, LVMH, and Richemont.

“This is the best that we felt about their financial situation in years because bankruptcy has cleared up all of the past due debt,” said Gary Wassner, founder of wholesale financing firm Hilldun. About 60 of 170 labels his firm works with have resumed shipping to Saks and Neiman Marcus.

Customer metrics show improvement with 6% higher spend per store visit and 11% increase in online conversion. The company reports significant improvements in full-price selling.

Industry experts remain cautious about long-term prospects. “The Saks bankruptcy isn’t really about luxury declining. It’s about the department store model overall struggling,” Vogue contributing editor Jenna Rennert said.

David Swartz, senior equity analyst at Morningstar Research Services, noted the funding “gives them some time to try to repair the business” but “doesn’t change the market dynamics that have caused the problems in the first place.”

The company expects to complete its restructuring this summer with what van Raemdonck calls “a right-sized capital structure and sufficient liquidity to invest in key areas of the business.”