Saks Global: Court approves 400 million dollar financing, despite Amazon objection

Saks Global has received preliminary approval for 400 million dollars in new funding from a US bankruptcy judge. The capital is part of a 1.75 billion dollar financing commitment secured by the group in association with its Chapter 11 proceedings, initiated with a Texas bankruptcy court.

Judge Alfredo Perez approved of the funding despite objections from Amazon. The marketplace giant opposed Saks' bankruptcy plans in court papers, stating that the new financing puts at risk its investment in the retail group and would only add to the debt burden it already faces.

In 2024, Amazon provided Saks with 475 million dollars to help finalise its 2.65 billion dollars acquisition of Neiman Marcus Group (NMG), in exchange for the sale of Saks products on its platform and other financial agreements spanning eight years.

Perez, however, has seemingly prioritised Saks’ financial proposal, granting the company means to begin stabilising its business while remaining in operation. The retail group, which owns Saks Fifth Avenue, Saks Off 5th, Bergdorf Goodman and Neiman Marcus, succumbed to bankruptcy after debts mounted to around 3.4 billion dollars.

Alongside its filing, the company enacted an overhaul of its leadership, with former NMG head, Geoffroy van Raemdonck, stepping in as CEO. In a statement, van Raemdonck said he saw “meaningful opportunity” on the path ahead, adding that Saks Global would continue playing a “central role in shaping the future of luxury retail”.