Saks seeks 1 billion dollar bankruptcy loan to avoid bankruptcy as it faces vendor lawsuits

Saks Global is reportedly in the process of securing a 1 billion dollar loan to avoid filing for Chapter 11 bankruptcy, as more vendors file lawsuits against the luxury department store group.

The capital-constrained company is said to be in negotiations with some of its creditors to obtain a loan, according to media reports. Saks Global, which missed an interest payment to bondholders that was due on December 30 for more than 100 million dollars, has been in negotiations with certain creditors regarding a forbearance agreement.

Apparently, some Saks bondholders are in discussions over a potential debtor-in-possession financing that could provide approximately 750 million dollars in new funding, along with the possible roll-up or accretion of existing debt, to support the company’s continued operations following a bankruptcy filing.

Saks Global's financial struggles intensify with missed interest payments & vendor lawsuits

Some media reports indicate that a partnership with Amazon may be the most likely path forward. Amazon, which already operates a Saks storefront on its platform, has been seeking avenues to expand in the luxury sector, and helping stabilize Saks could improve its standing with designers who remain cautious about the ecommerce giant.

The reports come as more unhappy vendors are turning to the court regarding their issues of nonpayment. Gabriella Rossetti Inc. recently filed a lawsuit against Saks Global over unpaid or unreturned consignment goods, while Catherine Regehr Inc. sued the retailer for 110,326.76 dollars in outstanding invoices. 

Last October, Jovani Fashion, a New York designer, manufacturer, and wholesaler of women’s apparel, filed a lawsuit against Saks Global for the loss of money it is owed for shipments arranged in 2025. Jovani Fashion stated that it shipped goods to the retailer between mid-January and the end of August at the agreed-upon price of 344,615.51 dollars, according to a report from WWD. 

Based on the lawsuit filing, the dressmaker received two payments, but is still missing 295,651.91 dollars in payments, plus interest. Saks Global rejected the allegations in court last month. Several brands affiliated with Saks Global and its department stores, Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, have raised concerns about the company’s unpaid invoices and bills, dating back to before its 2.7 billion-dollar acquisition of the Neiman Marcus Group in December 2024.

Although that deal was expected to recapitalize Saks Global and propel it forward, the combined businesses continued to face financial challenges throughout the past year, leaving it short on inventory and struggling to maintain relationships with vendors. Now, Saks Global, whose history spans more than 150 years, is struggling to address cash flow and inventory challenges. 

Roughly a year after raising billions from bond investors to support a turnaround plan that included acquiring Neiman Marcus, Saks Global hit a critical point. In August last year, it secured a 600 million dollar refinancing agreement with creditors, who accepted losses to help the company avoid bankruptcy, following earlier financing measures such as a 350 million dollar loan from SRL Credit Solutions.

Despite these efforts, Saks Global continued to face declining sales and inventory-management issues. In October 2025, it lowered its full-year guidance after reporting a 13 percent year-on-year revenue drop to 1.6 billion dollars in the second quarter. In the first quarter, it posted a net loss of 232 million dollars,  up from 184 million dollars in the same period the previous year, excluding Neiman Marcus. To raise funds, management explored selling a minority stake in Bergdorf Goodman and divesting certain assets, including a Beverly Hills property.

Amid these struggles, CEO Marc Metrick stepped down in January, with executive chairman Richard Baker assuming the role. FashionUnited has contacted Saks Global for additional commentary on the reports.