Bankrupt luxury retailer Saks Global is looking to shed a high-end executive perk — its sole corporate jet.
In a recent court filing, Saks Global, the owner of department stores Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, detailed its plan to sell its 2003 Gulfstream G400 jet for $6 million to a private buyer.
The jet, which can carry up to 16 passengers and is powered by two Rolls-Royce engines, was primarily used by Saks executives for business travel and to “meet operational needs,” attorneys for the retailer said in the Sunday filing.
When the jet was not in use for business purposes, Saks “allowed certain current and former executives and directors” of the company to use the aircraft for personal travel under time-sharing agreements, the court papers said.
The proposed sale, which requires approval from the federal Texas bankruptcy court where Saks filed for Chapter 11, would “enhance” Saks’ liquidity “by eliminating unnecessary costs and expenses,” the retailer’s attorneys wrote in the filing.
Saks hired aviation broker Guardian Jet to market the aircraft after the luxury giant filed for Chapter 11 bankruptcy protection in January, the court filing said.
The broker and Saks negotiated with prospective buyers and ultimately secured the “best and highest sale price” from the buyer, identified in the court documents as Jones Aviations LLC.
Under the terms of the agreement, the buyer would put down a $250,000 refundable deposit. The deal also includes a $210,000 broker fee for Guardian Jet.
A Saks spokesperson told Business Insider in a statement on Tuesday that the retailer’s “leadership has made the decision to sell the company’s legacy plane as it continues prioritizing the disciplined use of capital.”
“This action represents another deliberate step to direct investments toward the areas of the business that will drive meaningful growth for a stronger Saks Global,” the spokesperson said.
Saks filed for Chapter 11 on January 13 after missing payments to vendors and building a precarious debt load. At the time, Saks owed hundreds of millions of dollars to creditors, including Chanel and LVMH.
The cost cutting started almost immediately. In February, Saks said it would shutter nearly all of its discount Saks Off Fifth and Neiman Marcus Last Call locations, as well as several Saks Fifth Avenue locations. The next month, the company announced more closures.
Following the move, 15 Saks Fifth Avenue locations and 33 Neiman Marcus locations remain.
The retailer expects to emerge from bankruptcy during the summer.
While Saks said in the Sunday court filing that selling off the Gulfstream jet would “maximize value for the benefit of all creditors,” won’t cover much. Roughly two weeks of Saks’ legal bills in January totaled $7.2 million, court papers showed.
