Judge approves Saks Global $1.75 billion DIP; $330 million released to vendors
Feb 23rd 2026
Federal judge Alfredo Pérez signed the final debtor-in-possession financing order, unblocking funds to vendors and resolving most objections as Saks pursues Chapter 11 restructuring.
- Judge Alfredo Pérez gave final approval to Saks Global's $1.75 billion debtor-in-possession financing provided by the company bondholders.
- The order immediately released $330 million that is expected to be paid to certain vendors within two weeks.
- The financing provides over $1 billion in new liquidity with nearly $600 million earmarked to clean up prepetition vendor claims.
- Amazon initially objected at the first-day hearing but is no longer pursuing its objection to the DIP financing.
- The unsecured creditors committee includes major brands such as Chanel, Kering and LVMH that are owed substantial sums.
- New protections give brand partners a lien on proceeds of postpetition sales senior to DIP obligations except for ABL obligations, and unsold concession merchandise remains the property of the vendor.
- Saks says it is refocusing on luxury, is ahead of schedule closing 57 Saks Off 5th stores and nine full-line stores, and is on track to meet DIP milestones.