Saks Global owes millions. Here’s how to get your money back
Filing Chapter 11 bankruptcy signals hope for creditors to protect their full right to payment. But the money runs out quickly – and smaller brands can be the last in line.
By Laura Bachmann
When Saks Global filed for bankruptcy in January, it brought to the surface what many in the industry already knew. “Saks Global doesn’t just owe money,” Hypebeast wrote. “It owes half the fashion industry.”
Once again, the hubris of a store that grew too big (Saks took on a very large debt to buy Neiman Marcus in 2024) has left many designers in the lurch. Sound familiar? Back in September, we wrote about the downfall of SSENSE, Matches, and other e-comm giants that rose to spectacular heights in the 2010s, only to crash and burn in the last three, leaving scores of designers high and dry. In Saks’ case, while the biggest luxury brands are owed the most – Chanel $136 million, Kering $60 million, and LVMH $26 – it’ll be the smaller brands that suffer the harshest consequences. Because there’s only a court-approved pot of $120 million to split among vendors it considers ‘essential’.
Given the complexity and legal jargon surrounding the case, we joined the “Saks Global Bankruptcy: Basics for Brands” webinar, hosted by The Fashion Law, featuring Jayaram Law’s Founder, Vivek Jayaram, and its CEO, Noah Ornstein, to better understand what happens next. Here’s what we learnt.
What happened?
On the 14th of January, Saks Global Enterprises LLC voluntarily filed for Chapter 11 bankruptcy protection in Texas, USA. Amid a tumultuous time, consumers’ shifting shopping habits and the big, beautiful debt the giant retailer took on to acquire rival Neiman Marcus, Saks urgently seeks to restructure their business. So, some stores will shutter – the majority of its Saks Off 5th and Last Call off-price retail locations will close – but Saks retains its possessions. In the coming weeks, the giant luxury retailer will decide which relationships are critical or expandable. Bad news for brands with wholesale or drop-n-ship contracts. From the $1.75 billion financing package the debtor secured in a hearing before the judge to continue their operations, they are the last in line to get paid.