Fashion Giants Join Forces in Saks Global Bankruptcy Committee as Retailer's Future Hangs in Balance

For many vendors and designers who relied on Saks Global, the past year has been a struggle to be heard — and paid. With the retailer's bankruptcy filing last month, hopes of full repayment have dimmed, but a newly formed creditor committee is now giving them a collective voice in the complex Chapter 11 process.

More from WWD

Last week, a U.S. bankruptcy court appointed 11 key creditors to the Official Committee of Unsecured Creditors. The group, which includes retail and tech behemoths Amazon and fashion powerhouse Chanel, represents those with the most at stake financially. While the committee is tasked with advocating for all unsecured creditors, secured lenders and bondholders typically hold greater leverage in court-mandated repayments.

The committee's formation coincides with Saks Global's aggressive moves to restructure. The company plans to liquidate or sell the Saks Off 5th website and close most of its off-price stores. Larger questions loom over the fate of its approximately 70 department stores, details of which are still being negotiated.

In a significant shift, Reuters reported that Saks Global intends to terminate its partnership with Amazon, which has hosted a dedicated Saks storefront since last spring. The Amazon agreement is among several contracts Saks has asked the court for permission to reject. For now, the Saks storefront on Amazon remains operational.

An Amazon spokesperson stated, "Beyond the Saks experience, the Amazon Luxury store continues to offer a wide selection of high-end designer styles, and we're adding more luxury brands regularly." Saks Global declined to comment.

The dissolution marks a stark reversal for a partnership once hailed as a bridge between bricks and clicks. Tensions escalated pre-bankruptcy, with Amazon sending a letter accusing Saks management of misconduct and value degradation. During bankruptcy hearings, an Amazon lawyer unsuccessfully sought to delay Saks's emergency financing, a move the judge warned would force liquidation.

Industry Voices React

Marcus Thorne, Retail Analyst at Berenson Capital: "This committee composition shows where the real power lies. It's less about saving Saks and more about major players protecting their exposure. The Amazon split was inevitable once the financial distress became acute."

Eleanor Vance, Founder of a small apparel brand owed $200k: "It's a nightmare. We're a small designer, and Saks was a dream account. Now we're lumped in with giants on this committee, but will our voice matter? We'll be lucky to get cents back. The system feels stacked against the little guys."

David Chen, Former Saks Off 5th Operations Manager: "Liquidating Off 5th is a painful but necessary step. The brand had lost its identity. This process is about salvaging the core Saks luxury business, if there's anything left to salvage."

Gina Rossi, Fashion Law Attorney (sharp tone): "This is a masterclass in corporate failure. The board and management ran this iconic brand into the ground, and now the vultures are circling. Amazon's letter is a damning indictment. The committee is just a formalized feeding frenzy—don't expect fairness for the hundreds of smaller vendors left holding the bag."

Best of WWD

Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.