Saks Global’s eCommerce unit, Saks OFF 5th Digital, gained a court’s permission to hire a liquidator and sell its inventory amid its bankruptcy, Bloomberg reported Friday (Jan. 23).
The unit is being run by independent managers, and the court’s decision does not affect Saks Global’s brick-and-mortar stores, according to the report.
Those locations, including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and Saks OFF 5th physical stores, will remain open during Saks Global’s bankruptcy, the report said.
Saks Global declared bankruptcy on Jan. 14 amid mounting debt. The company said it had secured $1.75 billion in financing and appointed as its new CEO Geoffrey van Raemdonck, who had been CEO of Neiman Marcus before its merger with Saks in 2024.
“This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future,” van Raemdonck said at the time in a press release.
Saks Global said on Jan. 16 that it had access to an initial tranche of about $500 million of the $1.75 billion in committed capital and that it would use the funding to support its operations and transformation initiatives, including go-forward payments to brand partners and an accelerated inventory flow.
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“Access to this significant capital is instrumental as we work to strengthen our financial foundation and best position Saks Global for the future,” van Raemdonck said in the announcement. “Our stores and eCommerce experiences are open and focused on delivering exceptional products, elevated luxury experiences and highly personalized service to our customers.”
Saks Global completed its $2.7 billion acquisition of Neiman Marcus Group in December 2024, saying the luxury retail brands brought together by the transaction would continue to operate under their own brands while the parent company drove innovation and growth.
It was reported in February that Saks Global was warning its suppliers that it could take some time to get paid while also aiming to reassure them about their unpaid bills.
In August, it was reported that vendors said Saks Global had yet to follow through on payments that had been set to resume during that summer.
