According to Reuters, e-commerce giant Amazon and luxury powerhouses Chanel and LVMH have been appointed to the official creditors committee for Saks Global’s bankruptcy. The committee, formed by the U.S. Trustee on January 28, consists of 10 members including other brands like Kering and Ermenegildo Zegna, a landlord, a union, and a pension agency. Saks filed for Chapter 11 on January 13 with a staggering $3.4 billion in debt, a situation triggered by its failed merger with Neiman Marcus. The retailer owes Chanel $136 million, Kering $60 million, and LVMH $26 million, and it’s seeking court permission to make $337.4 million in catch-up payments to “critical” vendors. The committee will act as the unified voice for all junior creditors, with its legal costs billed to Saks during the proceedings.
Why this is a big deal
Here’s the thing: in a typical retail bankruptcy, the vendors who supply the goods are way down the priority list for getting paid. Secured lenders and bondholders usually eat first. But Saks isn’t a normal retailer—its entire business is built on selling high-end luxury goods from these very brands. If Chanel or Louis Vuitton walks away, Saks has nothing to sell. So their presence on this committee isn’t just about collecting old debts; it’s about having a direct say in Saks’ future business model. They can push for store closures, demand better payment terms going forward, or even influence a potential sale. Basically, they’re moving from being passive suppliers to active architects of the restructuring. That’s a huge shift in leverage.
Amazon’s ulterior motive
Now, Amazon’s inclusion is fascinating. The Reuters piece notes Amazon has already objected to Saks’ bankruptcy financing to protect a $475 million equity investment and its “Saks on Amazon” e-commerce revenue stream. So this isn’t about a few unpaid invoices for Amazon Web Services credits. This is about protecting a strategic partnership and a major financial stake. By getting a seat at the creditors’ table, Amazon gains formal leverage to block plans it doesn’t like and steer the outcome. Think about it: does Amazon want Saks to survive as a standalone luxury destination, or would it prefer its assets and brand get folded deeper into Amazon’s own ecosystem? Being on this committee gives them a powerful tool to shape that answer.
The restructure will be messy
Let’s be skeptical for a second. A 10-member committee with wildly different interests—luxury brands, a mega-tech company, a real estate landlord, and a labor union—is a recipe for conflict. What’s good for Chanel (maybe fewer physical stores) might be terrible for Brookfield Properties, the landlord. What Amazon wants for digital could clash with what the union needs for store employees. The fact that Saks is already asking to pay $337 million to some vendors upfront will likely cause tension with other creditors who aren’t getting that special treatment. This committee appointment ensures a brutal, public negotiation. It’s going to be a long, expensive process, and those legal fees, paid by Saks’ estate, will just keep mounting.
What happens next
The immediate battle is over that $337 million “critical vendor” payment request. The committee will have a major say in whether that gets approved by the court. After that, the real war begins: hammering out a plan of reorganization that all these powerful factions can agree on. Can Saks convince its luxury suppliers to keep shipping goods on faith? Can it renegotiate its brutal debt load? The presence of these titans on the committee means Saks’ management won’t be able to slide anything by. Every move will be scrutinized. For a company in the business of luxury, its future is now in the hands of a very tough, very pragmatic group of creditors who are all looking out for number one.
