Saks Global Enterprises missed a debt payment exceeding $100 million that was due December 30 and is preparing to file for Chapter 11 bankruptcy in the coming weeks, the Wall Street Journal reported Wednesday, citing people familiar with the matter.
The company skipped the interest payment owed to bondholders and is now negotiating with creditors for debtor-in-possession financing to support the bankruptcy process, according to the report.
Bloomberg confirmed the missed payment, reporting that the company is now operating under a grace period during restructuring talks with creditors.
Last week, the company said it was “exploring all potential paths” to secure financial stability while considering bankruptcy as a last resort.
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Read: Saks Global Considers Bankruptcy as $100 Million Debt Payment Looms
The company owns Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks OFF 5TH, operating roughly 70 locations across the portfolio.
Saks Global was established in July 2024, following the completion of Hudson’s Bay Company‘s $2.65 billion acquisition of Neiman Marcus Group. The deal combined the luxury retailers to compete with Nordstrom, Bloomingdale’s, and Macy’s.
Investors, including Amazon, Authentic Brands Group, and Salesforce backed the transaction, which was financed with $2.2 billion in senior secured notes and an asset-based credit facility.
The acquisition left Saks Global heavily leveraged as it struggled with weak demand in the luxury market. Rising inflation and signs of a weakening labor market have curbed consumer discretionary spending on high-end goods.
Reuters reported the company has explored multiple options to raise cash and reduce debt over the past year, including a proposed sale of a 49% minority stake in Bergdorf Goodman and the sale of assets such as its Beverly Hills property.
In August, Saks Global completed a debt restructuring that included $600 million in new money and an exchange of its $2.2 billion senior secured notes. The restructuring followed earlier warnings to suppliers about delayed payments.
The company reported a net loss of $288 million on revenue of $1.6 billion for the quarter ending August 2, representing a 13% revenue decline from the prior year.
Saks Global cut hundreds of jobs in April in an effort to eliminate duplicate roles following the merger. The company also closed most of its Canadian locations after Hudson’s Bay liquidated stores in that market.CEO Marc Metrick is expected to leave the company, multiple sources told Puck in late December. Metrick, a longtime Saks Fifth Avenue executive, oversaw the Neiman Marcus acquisition when he took the helm in December 2024.
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