Saks Global has secured final court approval for $1 billion in debtor-in-possession (DIP) financing, marking a significant milestone in its Chapter 11 restructuring.
A U.S. bankruptcy judge signed off on the funding Friday after the luxury retailer resolved objections tied to pricing and repayment terms raised by brand vendors and other creditors.
Saks filed for bankruptcy protection in January with $3.14 billion in debt.
According to Reuters, vendors including Chanel, Dolce & Gabbana and LVMH had pushed back on aspects of the proposed financing.
Landlords and Amazon, which partnered with Saks on an online luxury marketplace — also raised concerns. Those disputes were settled ahead of the hearing before U.S. Bankruptcy Judge Alfredo Perez.
Saks has valued its total bankruptcy financing package at $1.75 billion and previously received interim approval to access an initial portion of the loan.
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The retailer has said the capital is critical to stabilizing operations, repairing strained vendor relationships and providing runway to renegotiate its debt obligations.
In court, Benjamin Butterfield, an attorney representing the committee of junior creditors, said nearly $600 million of the new funding will go toward catch-up payments to vendors that supplied goods before the bankruptcy filing. The move is intended to reassure suppliers and restore confidence in the business.
Under new CEO Geoffroy van Raemdonck, Saks is repositioning around full-price luxury retail.
In January, the company announced plans to close 57 Saks Off 5th outlet stores and all five Last Call locations, the clearance arm of Neiman Marcus, as part of a broader effort to streamline its footprint.
Earlier this month, Saks launched the initial phase of its footprint “optimization” review, confirming the closure of eight Saks Fifth Avenue stores, including its location at American Dream in New Jersey, as well as one Neiman Marcus store.
With final DIP approval secured, Saks now has access to fresh liquidity as it moves through restructuring, focusing on vendor stability, store rationalization and a renewed emphasis on its core luxury positioning.
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