Saks Global sells its Gulfstream jet amid bankruptcy

Investing.com -- Saks Global Enterprises received court approval to sell its Gulfstream jet for $6 million to Jones Aviations LLC as the bankrupt luxury retailer works to reduce debt and cut operating costs.

The Massachusetts-based Jones Aviations will purchase the 2003-built aircraft, which executives had used for business and personal travel. The sale marks the latest asset disposal by Saks as it concentrates on high-end shoppers.

Earlier this year, the company began closing dozens of discount stores, including Saks Off 5th and Last Call locations. According to court documents, the jet was primarily used to facilitate business travel and meet operational needs.

"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 company said in a statement.

Saks Global filed for Chapter 11 bankruptcy protection on Jan. 14, citing high debt levels and a cash shortage that hindered its ability to stock stores with luxury merchandise for wealthy customers. The company disclosed liabilities of at least $3.4 billion in its Texas bankruptcy filing.

Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman continue normal operations while the company negotiates with creditors on a restructuring plan to exit bankruptcy court oversight.

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