Saks Global Wins Court Approval to Send Bankruptcy Plan to Creditors

Saks Global moved one step closer to handing the company to its lenders after a Houston bankruptcy judge approved the disclosure statement for its reorganization plan, clearing the way for creditors to vote on a deal that would wipe out existing equity and transfer control to senior lenders if confirmed.

The approval does not end the bankruptcy case. It opens the next stage in a restructuring that would reset ownership at one of the country’s best-known luxury chains, with U.S. Bankruptcy Judge Alfredo Perez presiding over the hearing in the U.S. Bankruptcy Court for the Southern District of Texas. Saks Global said it expects to emerge from Chapter 11 this summer, but that timeline now depends on creditor support for the plan.

The filing that set this process in motion came on January 13 and 14, 2026, when Saks Global Enterprises LLC and 112 affiliated debtors sought Chapter 11 protection after missing a $100 million interest payment. The debt load was tied to the company’s $2.7 billion acquisition of Neiman Marcus, a deal that left Saks Global carrying a capital structure too heavy for a luxury retail business already under pressure from weaker demand, changing shopping habits and the high cost of maintaining prime real estate and inventory.

To keep operating through bankruptcy, Saks Global said it secured about $1.75 billion in financing, including $1 billion in debtor-in-possession financing and roughly $240 million in incremental liquidity from asset-based lenders. The company later reached a restructuring support agreement with senior secured bondholders that included $500 million in exit financing, a sign that the most senior creditors are positioned to become the new owners if the plan wins approval. Reuters reported that under the deal, senior lenders are set to take control after providing new funding through the bankruptcy and pledging additional money at exit.

The plan also calls for a smaller store base. Saks Global has said it intends to close Saks Off 5th off-price stores and more than half of its Saks Fifth Avenue locations, concentrating on a narrower luxury footprint that it hopes will be more viable after bankruptcy. By late April, the company said more than 100 brands had either executed or were close to executing trade agreements, an important step for a business that depends on luxury vendors continuing to ship merchandise while the case moves forward.

The vote now before creditors will decide whether Saks Global can emerge as a leaner retailer or whether the company’s debt burden and store closures will leave it more exposed. The case has become a sharp example of how aggressive leverage can push a luxury retailer from expansion to restructuring in a matter of months.