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The discount online arm of Saks Global Enterprises won court approval to hire a liquidator to sell its inventory separately from the rest of the luxury retailer.
The e-commerce unit, known as Saks Off 5th Digital, is being run by independent managers and the sale of its assets does not include any merchandise of Saks Global’s brick and mortar stores, the online firm’s bankruptcy attorney Michael K. Riordan said in court Friday morning.
Saks Off 5th digital is also exploring broader, alternative transactions, Riordan said.
Because the unit may owe money to its parent, an independent manager and chief restructuring officer was appointed to oversee the unit’s bankruptcy case, according to court documents.
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Saks Global filed for bankruptcy Jan. 14 blaming high debt and a cash crunch that made it hard for the retailer to keep stores stocked with the high-end goods wealthy customers seek. In its Chapter 11 filing in Texas, the company said it owed at least $3.4 billion.
Saks Fifth Avenue and its other brands, Neiman Marcus, Bergdorf Goodman and the Saks Off 5th stores, which are not part of the digital unit, will remain open during the bankruptcy.
The case is Saks Global Enterprises LLC, 26-90103, US Bankruptcy Court, Southern District of Texas (Houston)
By Steven Church
Learn more:
Saks Global: When Bankruptcy Is Your Best-Case Scenario…
The retailer’s Chapter 11 filing — and $1.75 billion in new financing to keep operating while it restructures — came as a relief to many in the industry. But keeping the doors open is a low bar to clear; there are still unanswered questions about the luxury department store model’s future.
