Saks Global has received final approval for its $1bn bankruptcy loan after resolving payment disputes with creditors and luxury brands.
It comes after Saks Global reached deals with luxury brands that voiced concerns over being paid for products shipped to the retailer before it filed for bankruptcy.
The luxury department store group had been met with opposition for its bankruptcy financing from Dolce & Gabbana, Chanel, LVMH and Amazon, which had partnered with Saks on an online sales platform.
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The company said that it needed the funds to fix vendor relationships and give it time to renegotiate its debt.
The £1.29bn ($1.75bn) bankruptcy loan includes refinancing of pre-existing debts, as well as an expanded borrowing limit on Saks’ asset-based lending facility.
The business owes £100m ($136m) to Chanel, £44m ($60m) to Kering and £19m ($26m) to LVMH, according to its court filings.
Ben Butterfield, counsel to a court-appointed committee representing the group’s junior creditors, reportedly told the court that almost £443m ($600m) of the facility would be used to pay suppliers for items delivered prior to the bankruptcy filing.
The news comes after Saks filed for chapter 11 voluntary bankruptcy in January, a year after snapping up Neiman Marcus and Bergdorf Goodman.
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