Inside the High-Stakes Committee Steering Saks Global’s Bankruptcy

Saks Global’s currently-unfolding bankruptcy proceedings have taken a significant step forward with the formation of a new creditors committee, a powerful group of ten key stakeholders that includes some of the biggest names in luxury fashion, real estate players, and one increasingly vocal tech giant: Amazon. The committee will help guide Saks’ $3.4 billion restructuring after the department store chain filed for Chapter 11 protection earlier this month. While these committees often represent unsecured or junior creditors, the high-profile nature of its members suggests they will wield outsized influence in determining how Saks navigates its financial reset.

Among the ten parties on the newly-formed Official Committee of Unsecured Creditors, as appointed by the U.S. Trustee’s Office: Chanel, which is owed a staggering $136 million by Saks, LVMH ($26 million), Kering Americas ($60 million), Ermenegildo Zegna ($26.3 million), and Rosen-X ($41.4 million). Other members include Amazon, Brookfield Properties Retail, the Pension Benefit Guaranty Corporation, Kellermeyer Bergensons Services, LLC, and a labor union representing Saks store employees.

Since filing for Chapter 11 protection in a bankruptcy court in Houston, Texas on January 13, Saks has asked the court for permission to pay $337 million to “critical” vendors to ensure continued inventory flow and customer loyalty. And while Saks has not yet disclosed which brands it considers to be “critical” to its operations, vendors like Chanel, Kering, and LVMH are widely viewed as essential to the retailer’s financial health and strategic positioning.

Amazon’s Clash with Saks: From Partner to Aggressive Creditor

A number of parties have expressed cautious optimism about Saks’ future, with Ermenegildo Zegna Group, for one, saying that it expects Saks “will emerge stronger” and continue to be a valuable retail partner. Others on the committee have remained largely silent in public – with one glaring exception: Amazon.

Amazon’s investor relationship with Saks began in 2024, with the retail titan contributed $475 million to back Saks’ $2.7 billion acquisition of Neiman Marcus Group, gaining a minority equity stake and launching a joint Saks on Amazon e-commerce initiative. The deal promised high-end fashion offerings on Amazon’s platform and at least $900 million in referral fees to be paid over eight years.

But less than 14 months later, Amazon says its investment in Saks is “presumptively worthless.” In a court filing, Amazon accused Saks of mismanagement, saying the retailer “burned through hundreds of millions of dollars in less than a year” while failing to meet financial targets and racking up debts to its brand partners.

More critically, Amazon objected to Saks’ proposed bankruptcy financing plan, arguing in a January 15 court filing that it creates new debt obligations that could push Amazon further down the repayment order. It warned that if its concerns are not addressed, it may seek “more drastic remedies,” including the appointment of an independent examiner or a trustee to take control of the case.

U.S. Bankruptcy Judge Alfredo Perez in Houston has not yet sounded off on Amazon’s objection but did grant Saks access to $500 million of a broader $1.75 billion financing package to keep operations running in the near term. Amazon’s presence on the committee guarantees it will remain a major player in shaping the outcome at Saks. 

Further underscoring the breakdown in relations between the two companies, Saks is reportedly in the process of winding down its Saks on Amazon storefront, effectively abandoning the e-commerce partnership that emerged from Amazon’s $475 million investment in the retailer in 2024. According to Reuters sources, Saks plans to refocus its efforts on driving growth through Saks.com, citing limited luxury brand participation on Amazon’s platform.

While the partnership was already faltering by the time Saks filed for Chapter 11 protection, the bankruptcy filing gives the retailer a procedural pathway to formally reject the agreement. The move is likely to intensify friction with Amazon, whose counsel has already signaled in court that disputes over the partnership (and the use of Saks’ Fifth Avenue flagship as collateral) could become flashpoints in the restructuring, particularly as luxury brands push back against selling on a mass-market e-commerce platform they fear could dilute brand equity.

THE OUTLOOK: The newly formed creditors committee now faces the complex task of balancing a wide range of competing interests: luxury suppliers focused on brand integrity and timely payment, landlords seeking continued store operations, smaller unsecured creditors hoping to recover outstanding invoices, employees concerned about job security, and Amazon, which is demanding accountability and warning of more aggressive action if its objections go unanswered.