The company, which owns Saks Fifth Avenue and Neiman Marcus, is looking to file for bankruptcy as soon as Sunday (Jan. 11), The Wall Street Journal reported Friday (Jan. 9), citing unnamed sources.
One bankruptcy financing package would be a $1.25 billion debtor-in-possession loan to fund the chapter 11 proceedings and would give the group that is offering the package control of the company, according to the report.
A competing offer would be a $1.5 billion debtor-in-possession loan that would finance Saks Global as a going concern through the bankruptcy process, per the report.
Saks Global did not immediately reply to PYMNTS’ request for comment.
CNBC reported Thursday (Jan. 8) that the company was trying to line up bankruptcy financing but that investors were showing little interest. A lack of bankruptcy financing would increase the likelihood of Saks Global facing liquidation.
The company declined to comment on that report, according to CNBC.
Saks Global announced a leadership transition Jan. 2, with Saks Global Executive Chairman Richard Baker assuming the additional role of CEO, succeeding Marc Metrick, who had been CEO since 2015 and stepped down to pursue new opportunities.
Baker will oversee Saks Global’s luxury retail operations and will work with the management team to advance the company’s transformation, according to a press release announcing the transition.
It was reported Dec. 22 that Saks Global was considering bankruptcy while facing an over $100 million debt payment. The firm was also mulling other ways to boost liquidity, such as raising emergency funding or selling off assets.
Saks Global raised billions of dollars in 2024 to fund its turnaround effort, which included the purchase of NMG, the parent company of Neiman Marcus and Bergdorf Goodman, but the deal placed the struggling retailer deeper in debt.
It was reported in August that Saks Global was facing overdue invoices from vendors and had not yet followed through on payments that had been set to resume during the previous months.