Saks Global Enterprises, the luxury retail operator, is reportedly preparing to secure up to $1 billion in financing to sustain operations as it considers a Chapter 11 bankruptcy filing that could occur in the coming weeks, according to sources familiar with the matter.
The cash-strapped luxury retailer recently missed an interest payment exceeding $100 million that was due to bondholders on December 30, signaling deepening financial strain. In response, Saks has been negotiating a forbearance agreement with key creditors, a move that could temporarily pause enforcement actions while the company works to finalize new financing or develop a broader restructuring plan.
Sources say discussions among Saks bondholders include the possibility of a debtor-in-possession (DIP) loan, a common financing tool used during bankruptcy proceedings. The proposed DIP financing could consist of at least $750 million in new capital, along with a roll-up of existing debt, enabling Saks to continue operating during the bankruptcy process.
However, the structure and size of the potential financing remain fluid. Insiders caution that negotiations are ongoing and that the final terms of any bankruptcy loan or reorganization strategy could change as talks progress.
Saks Global Enterprises has not responded to requests for comment. Meanwhile, PJT Partners, the company’s financial adviser, declined to comment on the situation. The New York Post previously reported elements of the potential DIP loan discussions.
If finalized, the financing would mark a critical step for Saks as it navigates mounting debt pressures, shifting consumer demand, and ongoing challenges in the luxury retail sector.
