Saks Global Enterprises Seeks $1 Billion Loan Amid Possible Chapter 11 Bankruptcy Filing

Saks Global Enterprises, a major player in the U.S. luxury retail sector, is reportedly in discussions to secure approximately $1 billion in new financing as it prepares for a potential Chapter 11 bankruptcy filing in the coming weeks. According to a Bloomberg News report citing sources familiar with the matter, the company is exploring options to stabilize its finances after missing a significant debt obligation.

The New York-based luxury retailer failed to make a $100 million interest payment that was due on December 30, raising concerns among investors and creditors about its short-term liquidity. In response, Saks Global is said to be negotiating a forbearance agreement with its creditors, which would temporarily prevent enforcement actions while the company works to finalize a financing arrangement or develop a broader reorganization plan. Such a move would give the retailer critical time to restructure its balance sheet and maintain operations during a turbulent period for the retail industry.

Bloomberg’s report also noted that bondholders have been discussing the structure of a potential debtor-in-possession (DIP) loan. This type of financing is commonly used during Chapter 11 bankruptcy proceedings to allow companies to continue operating while they reorganize. The proposed DIP loan could include at least $750 million in new capital, along with a “roll-up” of existing debt, effectively prioritizing certain pre-bankruptcy obligations. This structure would help ensure Saks Global has sufficient liquidity to fund day-to-day operations, pay suppliers, and retain employees if a bankruptcy filing occurs.

Leadership changes have added to the uncertainty surrounding the company. Earlier this month, Marc Metrick stepped down as chief executive officer, and Richard Baker was named as his successor. The transition comes at a critical time as Saks Global navigates financial restructuring and strategic decisions that could shape its future.

Saks Global did not immediately respond to requests for comment, and Reuters noted it could not independently verify the Bloomberg report. Still, the news underscores the broader challenges facing luxury retailers amid shifting consumer spending patterns, higher interest rates, and increased operational costs. If finalized, the $1 billion loan and potential Chapter 11 filing could mark a pivotal moment for Saks Global as it seeks to preserve its brand and long-term viability in a highly competitive market.