Saks Global Enterprises is in talks to secure as much as $1 billion in bankruptcy financing to keep its stores open while it prepares a potential Chapter 11 filing in the coming weeks. The move follows a missed interest payment of more than $100 million due on December 30, 2025, signaling how tight liquidity has become at the parent of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
What Is Happening At Saks Global
According to people familiar with the talks, Saks Global is working on a debtor-in-possession, or DIP, loan of up to $1 billion that would fund operations through bankruptcy and help reassure vendors and landlords that bills will be paid. Some creditors are considering a structure with at least $750 million, plus a “roll-up” of existing debt, so the New York-based retailer can keep doors open throughout the court process.
The financing discussions are happening alongside negotiations with bondholders over a forbearance agreement that could temporarily pause enforcement on the missed $100 million interest payment while a broader restructuring plan is crafted. Without a deal, Saks Global risks running out of cash for inventory, payroll, and store operations across the United States.
How Saks Got Here
Saks Global was created in July 2024 when Hudson’s Bay Company combined Saks Fifth Avenue with Neiman Marcus and other luxury assets in a $2.65 billion takeover aimed at building a scale player in high-end retail. The new group also controls a large real estate portfolio estimated at nearly $4 billion in gross asset value across about 13 million square feet of space in the United States.
But softer luxury demand, heavy leverage, and vendors tightening terms have left Saks Global struggling to service debt even after a $600 million new-money injection and a restructuring of about $2.2 billion of obligations in August 2025. Traffic has been sluggish at department stores, and brands have been pushing more sales through their own boutiques and e-commerce sites instead of wholesale partners.
Tension Among Bondholders Over The Loan
Not all creditors agree on how much fresh capital should be put at risk in bankruptcy. Some existing bondholders support a $1 billion or larger DIP package to “keep the lights on” during Chapter 11 and protect the long-term value of the banners and real estate. Others are wary of adding more money on top of already bruising losses and are weighing whether to scale back their participation or walk away.
Separate reporting says one creditor group has floated a financing package of about $1.25 billion, with room to add another $250 million by rolling up existing loans and as much as $500 million in new capital after the company exits bankruptcy. These competing proposals could shape who ends up controlling Saks Global after restructuring, with some lenders pushing for changes in senior management as a condition for backing the new money.
Leadership Shake-Up And What Comes Next
In late December 2025, Marc Metrick stepped down as chief executive of Saks Global, and executive chairman Richard Baker was named CEO as the financing and bankruptcy talks intensified. The leadership change signals how seriously owners and lenders view the coming restructuring, with store futures, jobs, and iconic flagships like Fifth Avenue in New York hanging in the balance.
If Saks Global secures a DIP loan and files for Chapter 11, stores are expected to remain open, at least initially, as the company renegotiates leases, rationalizes underperforming locations, and decides how to maximize the value of its luxury real estate. For the broader luxury sector in the United States, the case will be closely watched as a test of whether large multi-banner department store groups can adapt fast enough in a market increasingly dominated by direct-to-consumer brands and online luxury platforms.
