Saks Global is considering filing for bankruptcy after it missed a $100 million interest payment on its debt, according to reports from Bloomberg and The Wall Street Journal.
“The planned chapter 11 filing is expected to mark the highest-profile department store bankruptcy since the COVID-19 pandemic,” the Journal said. Bloomberg wrote that the company is seeking a $1 billion loan to keep running.
Saks Global—which owns iconic retailers Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus—has yet to confirm the reports, but it isn’t swatting them down, either, with a spokesperson telling Business Insider that Saks is “exploring all potential paths to secure a strong and stable future.”
The news comes just as Saks Global announced the resignation of its CEO, Marc Metrick, a three-decade veteran of Saks Fifth Avenue. Co-owner and executive chairman Richard Baker is taking on the chief executive role.
Saks Global was formed last January, after Saks acquired longtime rival Neiman Marcus for $2.7 billion. The deal, spearheaded by Baker, attracted a diverse group of investors, including Amazon, Authentic Brands Group, Salesforce, and the Abu Dhabi Investment Council.
Baker has owned Saks since 2013. His company, National Realty and Development Corp., previously owned Fortunoff, Lord & Taylor, and Hudson Bay, all of which have liquidated.
(Photo: iStock/John M. Chase)
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