Inventory is beginning to return to shelves at Saks Global after months of strained vendor relationships and supply disruptions. The luxury retail operator said more than 380 brands have restarted shipments to its stores, marking a critical turning point in its Chapter 11 restructuring process.
In a LinkedIn update this week, CEO Geoffroy van Raemdonck said inventory flow has improved each week since mid-January, supported by fresh access to bankruptcy financing. Following a second-day court hearing, the company unlocked an additional $325 million from its $1.75 billion debtor-in-possession package, bringing total funds accessed since mid-January to about $825 million. Another $300 million tranche is expected in the coming weeks.
“With this added funding, we continue to have the liquidity necessary to deliver on our go-forward commitments to our customers, colleagues and brand partners,” van Raemdonck said.
Vendor Confidence Remains Fragile
The retailer’s liquidity crunch stemmed from mounting unpaid invoices that led several vendors to halt shipments over the past year. The disruption began before Saks Global’s $2.7 billion acquisition of Neiman Marcus Group in late 2024 and worsened through 2025, contributing to inventory shortages that hurt sales by the second quarter.
While the Chapter 11 filing reset payment timelines for many vendors operating on net-30 terms, some suppliers remain cautious. Several told industry publication Retail Dive they are prepared to pause shipments again if payments are delayed.
Last week, the bankruptcy court authorized Saks Global to pay certain “critical vendors” for claims outstanding before the filing. The company told the court it had resolved most formal and informal objections related to its financing package.
Among those previously raising concerns were major luxury houses including Kering, LVMH Moët Hennessy Louis Vuitton, Moncler, Richemont and jewellery brand David Yurman, which sought protections for consigned merchandise.
Franchise and Concession Impact
While Saks Global primarily operates company-owned stores, its model relies heavily on concession-style partnerships and branded shop-in-shop formats within Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman. These arrangements function similarly to franchise or licensed retail partnerships, where brand partners manage inventory and merchandising within host department stores.
For global luxury brands operating under franchise and licensing structures in other markets, the disruption underscored the risks of department store exposure. Payment delays can affect not only U.S. wholesale operations but also international franchise partners that depend on centralized production and distribution pipelines.
Van Raemdonck acknowledged that “there is still important work to be done,” adding that the company is taking a phased approach to discussions with partners amid a high volume of negotiations.
As the next financing tranche approaches, vendor cooperation and consistent payment execution will remain central to Saks Global’s restructuring, and to stabilizing one of the largest luxury retail platforms in North America.
