Saks Global (formerly Saks Fifth Avenue parent company) filed Chapter 11 bankruptcy in 2023. Here's what creditors need to know about recovery in 2026.
Case Status
Saks is operating as a debtor-in-possession, continuing to run stores. The company has been negotiating a reorganization plan with creditors and emerged or is close to emergence as of April 2026.
Creditor Categories
- Secured creditors: Expect high recovery (landlords with mortgages, equipment lenders)
- Priority unsecured: Employees, certain taxes—high recovery
- General unsecured: Vendors, trade creditors—projected 20–40% recovery
Store Strategy
Saks has closed some underperforming locations and retained core stores. Real estate recovery is a key component of the reorganization plan. Strong store sales in 2024–2025 improved recovery projections.
Distributions
If Saks has emerged from bankruptcy (or will shortly), creditors should expect plan distributions beginning in Q2–Q3 2026.