Luxury retail chain Saks Global is seeking $1 billion in financing to avoid potential bankruptcy. The company is struggling to secure a loan as investors doubt its ability to successfully reorganize and pay them back. Saks, which owns Neiman Marcus and Bergdorf Goodman, is facing declining sales and inventory gaps.

Saks missed an interest payment to bondholders, leading to a limited number of investors showing interest in financing the loan. Liquidation is a possible outcome if Saks can’t secure the loan for essential expenses like payroll and rent. Failure to secure financing could lead to Chapter 7 bankruptcy, potentially ending the iconic department store’s legacy.

The troubled retail chain has been in talks with liquidators for some stores that are closing, but not the entire chain. Saks has faced mounting issues since acquiring Neiman Marcus in 2024, leading to late vendor payments and declining sales. The luxury market slowdown has added to the challenges facing the company.

Read more at CNBC: Saks Global struggles to line up bankruptcy financing