US-based retail giant Amazon, along with luxury groups Chanel and LVMH, have been named to a new creditors committee overseeing Saks Global’s US bankruptcy restructuring, reported Reuters.
The Office of the US Trustee, part of the Department of Justice, told the Houston bankruptcy court that the panel had been formed.
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The committee comprises ten members, which also includes Ermenegildo Zegna, Kering Americas, Brookfield Properties Retail, a labour union representing Saks employees, a logistics provider, and the Pension Benefit Guaranty Corporation.
It represents junior creditors, with Saks covering its legal expenses during the court-led proceedings.
Luxury suppliers are expected to hold significant sway, despite vendor claims usually ranking low in US insolvency proceedings, the report said.
Saks has sought court approval to issue $337.4m in payments to what it calls “critical” vendors, saying their products are essential to keeping stores stocked and retaining customers.
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By GlobalDataFilings show the retailer owes $136m to Chanel, $60m to Gucci owner Kering, and $26m to LVMH.
The company entered bankruptcy earlier this month with $3.4bn in liabilities after its merger with Neiman Marcus, which it said created cash pressures that hindered inventory replenishment.
According to the report, Amazon has already objected to Saks’ proposed financing plan, pointing to a $475m equity stake and revenue linked to a “Saks on Amazon” e-commerce partnership.
Its place on the committee could strengthen its position later in the case.
The US Trustee generally aims to assemble a broad mix of creditors so that landlords, suppliers and other lower-ranking claimants are represented in complex restructurings.
In a recent development, Saks Global secured an initial tranche of $500m from a broader $1.75bn committed financing package.
The group said the funds will provide liquidity to maintain business continuity and back transformation initiatives across its portfolio.
It added that the financing will be used to make go-forward payments to brand partners and to expedite inventory flow.
