SAKS WINS APPROVAL TO EXIT BANKRUPTCY AFTER REORGANIZING
(Bloomberg) -- Luxury retailer Saks Global Enterprises won court permission to exit bankruptcy, after shutting its discount businesses and closing unprofitable stores so as to focus on selling the high-end goods for which it has long been known.
US Bankruptcy Judge Alfredo Perez said he would approve the company’s reorganization plans, which he called “an extraordinary result.”
Deals that Saks struck with creditors “allowed the company to get back on its feet and back to work,” Perez said during a court hearing in Houston on Friday.
Since filing for court protection in January, Saks has closed many of its discount outlets in order to focus on its Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman stores. Under the plan, the company will reduce its funded debt to about $1.2 billion from $3.4 billion, and will have an enterprise value of between $2.5 billion and $3.5 billion.
Perez overruled objections to the plan from former top executives, who said they should be shielded from future lawsuits through so-called indemnification agreements. Perez sided with Saks, which argued that the former executives could be sued for any role they may have played in the company’s financial troubles.
The case is Saks Global Enterprises LLC, number 26-90103, in the US Bankruptcy Court for the Southern District of Texas.
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2026-06-05T18:51:40Z
