Saks Global Enterprises is considering a Chapter 11 bankruptcy filing as a last resort amid a debt payment of over $100 million due at the end of December, according to a Bloomberg report.
Sources told the business publication that the luxury chain, which owns Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Off 5th, is also weighing additional options to shore up liquidity, including raising emergency financing or selling assets.
Separately, some Saks lenders have held confidential talks in recent days to assess the company’s cash needs, including securing debtor-in-possession financing as a prelude to a bankruptcy filing.
“Together with our key financial stakeholders, we are exploring all potential paths to secure a strong and stable future for Saks Global and advance our transformation while delivering exceptional products, elevated experiences and personalized service to our customers,” a representative for Saks said in an e-mail to Bloomberg.
PJT Partners, which is advising the company, declined to comment.
Saks’ $2.65 billion acquisition of competitor Neiman Marcus was designed to provide scale to better compete in the marketplace, but the move added debt and did not resolve payment delays with vendors.
Image courtesy Saks Fifth Avenue
