Luxury retailer Saks Global secured a Texas bankruptcy judge's approval Friday on more than $1.2 billion in Chapter 11 financing after reaching a deal with unsecured creditors, funds that Saks will use to support its reorganization efforts.

At a hearing, U.S. Bankruptcy Judge Alfredo R. Perez gave final approval to Saks' debtor-in-possession financing motion, freeing up roughly $1.24 billion in fresh funding. The motion was largely uncontested on Friday after Saks agreed to add protections for vendors as part of the DIP package.

"I appreciate everyone's efforts, and I will enter the order," Judge Perez said.

Saks' DIP financing comprises three debt facilities that total $5.85 billion. Of that sum, up to roughly $2.1 billion is prepetition debt being rolled up into the DIP.

The $1.24 billion in new money financing will be used to fund most of a $1.75 billion intercompany loan. Saks' DIP lenders will also provide $500 million in exit financing as part of that package.

Saks' unsecured creditors and vendors expressed support for the DIP at Friday's hearing after the debtor made what they called "material concessions." Saks agreed that the new money and rollup DIP loans would be subordinated to the debtor's bills to concession and consignment vendors for post-bankruptcy sales.

The debtor also said it would give vendors rights to goods held by Saks during the bankruptcy case and ensure that stub rent is paid to landlords on time.

"DIPs are hard-fought. This was no exception," said Benjamin Butterfield of Morrison Foerster LLP, counsel to the unsecured creditors committee. "But I think from the committee's perspective, we've absolutely gotten to the right place."

Judge Perez also on Friday approved a bid by SO5 Digital, the online retailer for Saks Off 5th, to continue using cash that serves as lender collateral.

Saks Global filed for bankruptcy Jan. 14 with about $3.4 billion in funded debt after struggling to deal with the debt it took on to purchase Neiman Marcus more than a year ago.

This month, Judge Perez approved Saks' plan to begin closing procedures at nine of its flagship stores and continue the liquidation of its off-price e-commerce inventory as part of an effort to focus more on its luxury offerings.

Saks Global is represented by Jennifer J. Hardy, Debra M. Sinclair, Robin Spigel, Allyson B. Smith, Betsy L. Feldman, Jessica D. Graber and Ryan Blaine Bennett of Willkie Farr & Gallagher LLP and Kelli Stephenson Norfleet, Kenric D. Kattner, Arsalan Muhammad, Kourtney P. Lyda and David Trausch of Haynes Boone.

The SO5 debtors are represented by Jarrod B. Martin, Michael K. Riordan, Raneen I. Abdelghani, Asiya Khan and James Bailey of Bradley Arant Boult Cummings LLP.

The official committee of unsecured creditors is represented by Ian R. Phillips, Seth Van Aalten and Justin R. Alberto of Cole Schotz PC and Lorenzo Marinuzzi, Doug Mannal, Benjamin Butterfield and Raff Ferraioli of Morrison Foerster LLP.

The case is In re: Saks Global Enterprises LLC et al., case number 4:26-bk-90103, in the U.S. Bankruptcy Court for the Southern District of Texas.