The Tamesis
The owner of Saks, Neiman Marcus and Bergdorf Goodman unveiled restructuring plans for 2026 for the first time since Saks Global filed for bankruptcy in January. The company filed a preliminary Chapter 11 exit plan on Sunday that confirms many of the promises it has made since filing for bankruptcy on Jan. 14, including a pledge not to sell any of the three retailers.
For brands, the impact remains unclear at this initial stage. Under Saks Global’s reorganization structure, there will be new supplier agreements, but the details remain confidential. Now, Saks will determine what its inventory framework will look like under its new, leaner structure and which brands will be retained in the process.
Saks Global must continue to maintain inventory levels and rebuild relationships with brand suppliers while avoiding the accumulation of excess inventory, the company’s disclosure statement said. “therefore, [Saks Global] May experience difficulties responding to changes in the retail environment and specific changes in supplier relationships, making them vulnerable to changes in price and consumer preferences,” the statement read.
Rebuilding brand relationships is key to the task facing CEO Geoffroy van Raemdonck. Saks confirmed that since filing for bankruptcy protection, about 650 brands that had suspended shipments have resumed shipments and that it has reached agreements with another 250 brands large and small to continue shipping. That will be an important part of retaining what Saks calls a loyal customer base, said Sarah Foss, Debtwire’s global head of legal.
“Saks is an important partner to American designers, and we are encouraged by its path to financial stability and a successful exit this summer,” said Steven Kolb, CEO and chairman of the CFDA, which joined three other global fashion councils in urging Saks last month to repay its debt to independent designers. “A strong Saks is good for the broader fashion ecosystem,” Kolb continued. “We look forward to continuing to make progress in rebuilding trust in our brands, especially among small and independent businesses.”
Under an agreement reached on April 1 with lenders including Pentwater Capital Management, GoldenTree Asset Management and FFI Fund, the lenders will take over the company through equity units, according to Debtwire. As announced last week, Saks will receive $500 million in exit financing from bondholders when the company completes the Chapter 11 process. The filing also confirms that Saks has no plans to sell Bergdorf Goodman or Neiman Marcus, which had previously been speculated to be the former. (Experts note that Saks may still sell Bergdorf in the future.) This marks the end of Saks’ deal with Amazon, meaning Saks no longer has a presence on the e-commerce site.
“We recognize the challenges our brand partners have experienced due to the company’s past liquidity constraints,” the company said. fashion business. “The Chapter 11 process allows us to obtain the necessary financing to operate effectively through the completion of the reorganization process and prepare for our successful emergence this summer. We are committed to building a stronger, more focused company and a more reliable partner.”
Flowserve said the key to the company’s future will be to continue to rebuild credibility and relationships with its suppliers and other partners.
Experts note that while the exit plan offers a way forward, it leaves many questions unanswered. Neil Saunders, managing director of retail at GlobalData, said it was clear not everyone would be paid. The plan does not say when or if certain pre-filing creditors will receive payments. “Not everyone who is owed money is going to get it, including a lot of vendors, and that’s not going to be good,” Saks said. Saks did not comment by deadline for this article.
