For the first time in 2026, since Saks Global filed for bankruptcy in January, the owner of Saks, Neiman Marcus, and Bergdorf Goodman has a public plan for its restructuring. The company filed its initial Chapter 11 exit plan on Sunday, which confirms many of the promises it’s made since filing for bankruptcy on January 14 and includes a commitment not to sell any of the three retailers.
For brands, the implications are still blurry at this initial stage. Under Saks Global’s reorganized structure, there will be new vendor agreements, though what these will look like remains under wraps. Now, Saks will determine what its inventory framework will look like under its new, leaner structure — and which brands it will keep on board in the process.
The company’s disclosure statement notes that Saks Global must continue to maintain inventory levels and rebuild relationships with brand vendors — while avoiding accumulating excess inventory. “As a result, [Saks Global] may experience difficulty in responding to changes in the retail environment generally as well as any changes to their vendor relationships specifically, which makes them vulnerable to changes in price and consumer preferences,” the statement reads.
Rebuilding brand relationships is at the crux of the task ahead for CEO Geoffroy van Raemdonck. Saks has confirmed that, since the bankruptcy filing, approximately 650 brands that had paused shipments have resumed deliveries, and that it has reached go-forward agreements with a further 250 brands, large and small. This will be an important part of preserving what Saks has said is its loyal customer base, Sarah Foss, global head of legal at Debtwire, says.
“Saks is an important partner to American designers, and we’re encouraged by its path toward financial stability and a successful exit this summer,” says Steven Kolb, CEO and president of the CFDA, which, alongside the three other global fashion councils, urged Saks last month to pay its debts to independent designers. “A strong Saks is good for the broader fashion ecosystem,” Kolb continues. “We look forward to continued progress in rebuilding trust with brands — especially small and independent businesses.”
Under the agreement reached with lenders including Pentwater Capital Management, GoldenTree Asset Management, and FFI Fund on April 1, these lenders will assume control of the company via equity units, according to Debtwire. As publicized last week, Saks will receive $500 million in exit financing from bondholders when the company completes the Chapter 11 process. The document also confirms that Saks doesn’t have plans to sell Bergdorf Goodman or Neiman Marcus, the former of which was speculated. (Saks could still sell Bergdorf later down the line, experts flag.) And it marks the end of Saks’s deal with Amazon, meaning Saks no longer has a presence on the e-commerce site.
“We recognize the challenges our brand partners have experienced as a result of the Company’s past liquidity constraints,” the company shared with Replica Handbag Store Business. “The Chapter 11 process has afforded us the ability to secure the necessary financing to operate effectively through the completion of the restructuring process, setting us up for a successful emergence this summer. We are committed to building a stronger, more focused company that will be a more reliable partner.”
Key to the company’s future, Foss says, will be continuing to reestablish credibility and relationships with its vendors and other partners.
Though the exit plan provides a path forward, it leaves many questions unanswered, experts flag. What is clear, though, is that not everyone will get paid, says Neil Saunders, managing director of GlobalData’s retail division. The plan doesn’t state when or if certain prepetition creditors will receive payment. “Not everyone who is owed money will get it — including many vendors, which will not go down well,” Saunders says. Saks did not share comments before the deadline for this article.
“Due to requirements within chapter 11 cases, we are limited in the pre-petition payments we are authorized to make. Any amounts owed for goods or services provided prior to the filing date of January 13, 2026 will be addressed through the court process,” the company shared.
One independent designer says they shipped their spring 2026 order because it was protected under the bankruptcy proceedings, meaning Saks had to pay designers under preferable terms. The designer confirms they have been paid for this order, within three weeks of delivery, ahead of the net 30 payment terms, which undid the policy enacted last year to move payment windows from 30 to 90 days. However, the designer says they’ve not received payment for pieces sold on consignment 10 months ago.
If, or when, overdue payments will come remains unclear. “The implications [of the exit plan] for smaller brands are not entirely clear as we are not sure who is getting paid,” Saunders says. “However, Saks will need the smaller brands to succeed, so it is going to have to rebuild relations and get them back on board in some way.”
“We are focused on the steady progress we are making in rebuilding trust with our established and emerging brand partners, strengthening these relationships to drive our collectsive businesses,” Saks shared. “We work with a significant number of independent designers and look forward to building on our long-standing industry relationships as we lay the path for a strong future for Saks Global and our partners.” Small and independent designers and fashion brands represent 46% of the total brands that have been offered recovery on pre-petition claims.
What happens now?
Now that Saks has confirmed its reorganization, brands need Saks to provide claritys about what inventory levels are required and which brands it will continue to work with. Already last year, ex-CEO Marc Metrick cut the number of vendors at Saks by about 25% as part of a cost-cutting strategy. “We had too many brands at Saks Global,” he said at the time. Now, Saks needs to decide — and communicate — which contracts it wants to assume (continue) and which it wants to reject (discontinue) across its three retailers.
“Brands should be hoping that Saks decides which contracts the company wants to assume and which it wants to reject, so they know where they will stand with respect to their contracts,” Foss says. She expects Saks will wish to continue to do business with small and independent brands, so long as it views its contracts with these brands as profitable. The contracts that Saks assumes will require Saks to pay outstanding amounts under the contract (other than bankruptcy-related defaults) and provide evidence of its ability to perform under the contract in the future, Foss explains.
Communication on payment details and how the company plans to stick to them will be key for brands as well, Saunders adds. “There has been so much uncertainty over Saks; most brands just want some claritys.”
So far, this is lacking. One designer was told by their buyer (when questioned) that Saks has a full schedule for when their consignment payout will come through. “Which, on one hand, is great, but I’ve been waiting here in the dark for money that is close to a year overdue. Meanwhile, they know exactly when it’s meant to come through, and I haven’t been told any of this.”
The brand that is currently paid upfront has had no communications about whether these terms will continue as Saks works toward bankruptcy, or after the company exits Chapter 11. “We take every season with a grain of salt,” the employee says. “Nobody has visibility into which brands they’re paying.” They add that the buyers they work with also seem to have very limited information.
The designer says they will continue to ship to Saks, but are not confident about doing so. “I am very fearful for the next order since it wouldn’t be protected by the courts. Hopefully, this would still be paid out on time, but they haven’t given us much to trust or hold onto.”
“Saks Global continues to pay brand partners in the ordinary course of business for authorized goods and services rendered after the filing date of January 13, 2026, and we are committed to continuing to honor our financial commitments throughout the rest of our restructuring process and post emergence,” the company shared.
For brands Saks cuts from its vendor list, the outlook is murkier still. “It is worth noting that Chapter 11 debtors often use their ability to reject a contract as leverage to renegotiate contracts that they deem financially burdensome,” Foss says. Those whose contracts are rejected will likely be left with general unsecured claims, she flags — meaning that, as low-priority repayments, they will be the least likely to see repayments of the debt they are owed by the company. “Their claims are unlikely to be repaid in full,” Foss says. “We don’t yet know what general unsecured creditors will be receiving under the Saks plan, but in some cases it could be pennies on the dollar.”
Once again, it’s Saks’s smaller vendors left in a precarious position. “Larger brands may be more winners than losers, as a key distribution channel remains open,” Saunders says. “The losers are, unfortunately, the smaller brands.”
This article was updated to reflect that the names of lenders were communicated by Debtwire, not the initial exit plan, and to include statements from Saks Global on brand payments.
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