Saks Global Enterprises’ delayed payments to luxury brands played a key role in accelerating the retailer’s decline and pushing it into bankruptcy. Brands pulled back on shipments or cancelled orders during the past year or so, leaving Saks’ stores looking less than luxurious. Now, court documents from its Chapter 11 filing just after midnight on Wednesday give greater insight into why brands were so wary: Some are owed tens of millions of dollars.

Making peace with the world’s top luxury brands will be crucial for incoming chief executive officer Geoffroy van Raemdonck because it needs them to keep shipping goods as it tries to restructure its finances. At the top of the list is Chanel Ltd., which is due $136 million, according to court documents in Texas where Saks filed for bankruptcy. Next is Kering SA- owner of brands including Gucci and Balenciaga– at about $60 million. 

Other creditors with claims of about $30 million include Capri Holdings Ltd., which owns Michael Kors and Jimmy Choo; Mayhoola LLC, owner of Valentino along with Kering; LVMH, owner of Louis Vuitton and Christian Dior; and Compagnie Financière Richemont SA, owner of Cartier and Van Cleef & Arpels. The brands didn’t immediately respond to requests to comment. 

Debts owed to brands and other vendors that provide merchandise and services are unsecured claims in bankruptcy court. That kind of liability is generally only repaid pennies on the dollar in Chapter 11.

Saks Global said in a statement Wednesday that it expects to be able to make “go-forward payments” to vendors. The company’s stores, which include Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, will remain open through the bankruptcy proceedings, the company added. 

The former head of Neiman Marcus Group before its acquisition, van Raemdonck is bringing along several colleagues from his Neiman days, including Brandy Richardson as chief financial officer and Darcy Penick as chief commercial officer.

Brunello Cucinelli SpA, which is owed $21.3 million, said it has confidence in the new management. The company believes the Saks team “will be able to guide this storied department store with great distinction,” Brunello Cucinelli, founder of his eponymous brand, said in a statement Wednesday. 

Saks Fifth Avenue was already falling behind on payments to brands that were sending it merchandise when its parent company acquired rival Neiman Marcus Group in December 2024. That deal was financed by about $2 billion in bonds that Saks Global Enterprises, as the new company was called, soon struggled to pay off- further delaying and extending what vendors were owed. 

Some vendors worried about not getting paid and cancelled their shipments or demanded more onerous payment terms, which made Saks’ financial situation even worse. Less merchandise made stores look a bit bare, which turned off shoppers and sped up its decline. A few brands have sued: New York City-based Jovani Fashion Ltd. filed suit in October, saying Saks and Neiman owe it $295,651 plus interest for merchandise.