Luxury retail company Saks Global is moving closer to emerging from Chapter 11 of the United States Bankruptcy Code after a bankruptcy court approved the luxury retailer’s restructuring plan.

The company announced June 5 that the U.S. Bankruptcy Court for the Southern District of Texas confirmed its Plan of Reorganization, clearing the way for Saks Global to exit chapter 11 proceedings in the coming weeks.

According to the company, the plan received support from creditors across its capital structure, with most voting in favour.

The restructuring is expected to reduce Saks Global’s debt by nearly 75 per cent and provide additional liquidity to support operations and future investments. The company said the plan is intended to strengthen its financial position as it focuses on long-term growth. “With our capital partners’ commitment and the dedication of our talented team, we are on track to emerge as a stronger, more focused company, poised for profitable and sustainable growth. I firmly believe in Saks Global’s enduring role as a leader in the luxury retail ecosystem, delivering exceptional experiences for customers and serving as the premier gateway to the U.S. luxury consumer for our brand partners. I am confident we are well-positioned to define the future of luxury retail.”

Saks Global, which owns Neiman Marcus, Saks Fifth Avenue, Bergdorf Goodman, and Saks OFF 5TH, entered chapter 11 earlier this year. Since then, it has taken steps to streamline operations, optimize its store footprint and supply chain network, and narrow its focus on full-price luxury retail.

The retailer said it has streamlined parts of its off-price business and adjusted its corporate structure to align with its strategy. It also reported improved sales trends at its remaining stores, citing increased inventory and customer engagement.

Looking ahead, Saks Global said it aims to generate $9 billion in gross merchandise value and achieve double-digit adjusted EBITDA by fiscal 2030.

Chief financial officer Brandy Richardson said the reduced debt load and cost-saving measures position the business for future growth, adding, “We are grateful for the support of all of our stakeholders, including our capital partners and brand partners, and look forward to driving profitable growth as a stronger Saks Global, leveraging our distinct and differentiated assets.”