Saks Global headed toward bankruptcy after missing debt payment: report

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Saks Global Faces Bankruptcy Amid Missed Debt Payment

Saks Global is facing financial turmoil as reports suggest that the luxury retailer is on the brink of bankruptcy after failing to make a $100 million payment on its debt, which was used to acquire Nieman Marcus.

The company, known for its brands like Saks Fifth Avenue, Bergdorf Goodman, and Saks off 5th, missed the payment to bondholders on Tuesday. Talks with creditors are underway to secure financing for a potential bankruptcy filing, as reported by The Wall Street Journal.

Saks Global has not yet responded to requests for comment.

Saks Global, which owns Neiman Marcus, Saks Fifth Avenue and Bergdorf Goodman, is preparing to file for bankruptcy protection. Stephen Yang

The struggling company has faced challenges since its acquisition of Neiman Marcus for $2.7 billion a year ago. Late payments to vendors have resulted in a shortage of high-fashion brands at Saks Global’s stores, leading to weak sales.

Revenues for the quarter ended Aug. 2 declined by 13%. In an attempt to alleviate its financial woes, Saks Global raised $600 million in capital and is exploring the sale of a minority stake in Bergdorf Goodman.

Richard Baker, the executive chairman of Saks Global and a prominent real estate mogul, orchestrated the merger with Neiman Marcus. However, the deal coincided with a decline in luxury goods demand, leading to several rounds of layoffs at Saks Global this year.