Luxury department store operator Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus files for bankruptcy protection, leaving suppliers with unpaid bills and causing tension with Amazon, a minority investor. Saks Global secures $1.75 billion while outstanding liabilities range from $1 billion to $10 billion.

The bankruptcy could impact available designer brands as many stopped shipping goods due to Saks Global’s financial troubles. Neil Saunders of GlobalData Retail emphasizes the importance of a good assortment to retain customers.

Suppliers face unpaid bills from Saks Global, with major brands like Chanel and Gucci topping the list of creditors. Small and medium-sized brands are at risk of closing if bills remain unpaid.

Amazon invested $475 million in Saks’ purchase of Neiman Marcus but has expressed concern over Saks’ financial situation. Saks secured $500 million from a $1.75 billion financial package after a court ruling.

Saks plans to close nine Saks Off 5th stores and evaluate its operational footprint. Experts predict more closures, with Saks Off 5th locations being the most vulnerable.

Shoppers can expect discounts at Saks, Neiman Marcus, and Saks Off 5th as the retailers try to generate sales. However, major brands like Chanel and Louis Vuitton may not see steep discounts due to clauses triggered by the bankruptcy filing.

Read more at Yahoo Finance: Saks’ bankruptcy filing creates uncertainty for iconic stores, suppliers and shoppers