U.S. court case sees Saks Global accuse lender of contributing to Bay's demise
TORONTO – Saks Global is putting some of the blame for Hudson's Bay's demise on one of the faltering department store's top lenders.
A letter Saks Global filed in a New York lawsuit against Pathlight Capital LP says the lender's failure to support Hudson's Bay and its move to allegedly deprive it of much-needed financing led it to seek creditor protection.
Saks Global was formed last year, when Hudson's Bay purchased Neiman Marcus and Bergdorf Goodman and spun them out with its existing Saks Fifth Avenue into a new company.
Court documents say that transaction was made possible in part because Pathlight agreed to release Saks Global from obligations under a loan the Bay had in exchange for millions in payments.
Now, Pathlight is suing Saks Global because it has yet to be paid US$8.8 million it is owed.
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The U.S. court battle comes as Hudson's Bay and its Canadian Saks stores approach their final weekend of liquidation sales before the locations close for good.
This report by The Canadian Press was first published May 30, 2025.
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