Saks Global unsecured creditors form committee

In a new phase of Saks Global's Chapter 11 bankruptcy proceedings, the US Trustee's Office has formed an Official Committee of Unsecured Creditors, giving the retail group's partners a voice in the process.

A total of 10 members were appointed to the committee last week, including major fashion houses such as Chanel, LVMH, Kering and Ermenegildo Zegna, as well as as well as Amazon, Brookfield Properties, a labour union representing store workers and other service providers.

Saks Global reported roughly 3.4 billion dollars in total liabilities following its merger with Neiman Marcus, with its number of creditors sitting in the range of 10,001 to 25,000. Chanel holds the largest unsecured claim, at around 136 million dollars.

Unsecured creditors are those without collateral backing their claims. The committee must negotiate a restructuring plan that weighs landlord interests, employee concerns and vendors' claims.

Saks Global is using the bankruptcy process to reshape its business. The company plans to shut most Saks Off 5th stores, and the off-price website may be liquidated or sold. The future of some of its 70 full-line department stores remains unclear.

Reuters has also reported that Saks plans to end its partnership with Amazon, which launched a Saks storefront last year. For now, the Saks shop on Amazon continues to operate while the court reviews which contracts may be rejected.

Amazon injected 475 million dollars into Saks Global to help finalise its 2.65 billion dollar acquisition of Neiman Marcus Group in 2024. The relationship has since soured, however, after Amazon objected to Saks' restructuring plans, citing concerns over the debt burden and its investment.