Saks Global is making ready to file for bankruptcy within the coming weeks after missing a debt payment tied to its Neiman Marcus acquisition, the Wall Street Journal mentioned on Wednesday, citing folks conversant in the matter.
The mum or dad of high-end division retailer chain Saks Fifth Avenue didn’t make an curiosity payment of over $100 million due on Tuesday on its bonds, and is in talks with its collectors to safe financing for the bankruptcy course of, the report added.
Saks Global didn’t instantly reply to a Reuters request for remark.
The firm has been struggling to revive demand within the U.S. as rising inflation and a weakening labor market have curbed discretionary spending, together with on luxurious gadgets.
Over the previous yr, the corporate was seeking to promote a minority stake in luxurious retailer Bergdorf Goodman to assist cut back debt, a Saks Global spokesperson informed Reuters in September.
During this era, it additionally aimed to boost money by means of the sale of property like a Beverly Hills property, the Wall Street Journal report mentioned.
In August 2025, Saks Global accomplished a debt restructuring that included about $600 million in new cash and an change of its $2.2 billion senior secured notes.
Hudson’s Bay Company created the agency in July final yr following its $2.65 billion acquisition of division retailer chain Neiman Marcus.
The transfer mixed Saks Fifth Avenue, Neiman Marcus and different luxurious retail and actual property property to raised compete with division retailer operators similar to Nordstrom, Bloomingdale’s and Macy’s.
The deal was funded by new buyers such as Amazon, Authentic Brands Group, Salesforce and others, together with $2.2 billion in senior secured notes and an asset-based credit score facility.
By Anuja Bharat Mystery in Bengaluru; Editing by Vijay Kishore
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Saks Bond Suffers $1 Billion Loss Before a Single Payment Is Made
Saks Global is now in search of much more cash to shore up funds whereas bondholders, who face nearly $1 billion in losses, have begun to query in the event that they’ll obtain a single curiosity payment.