Saks Seeks US$1 Billion Loan for Potential Bankruptcy Filing

Saks Global Enterprises is in negotiations to secure a US$1 billion (MX$17.9 billion) loan as it prepares for a possible Chapter 11 bankruptcy filing in the coming weeks. The luxury retailer, which operates Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, reportedly missed a US$100 million interest payment due Dec. 30 and is currently seeking a forbearance agreement with creditors. 

The proposed financing structure includes a debtor-in-possession (DIP) loan with at least US$750 million in new capital. This arrangement would incorporate a roll-up of existing debt to maintain operations throughout a court-supervised reorganization. The liquidity crisis follows a period of declining sales and significant inventory pressures, exacerbated by a US$4.7 billion debt load primarily tied to the 2024 acquisition of Neiman Marcus.

The retailer has attempted various measures to stabilize its finances over the past year:

• Asset Sales: The company sold its Neiman Marcus Beverly Hills property in a sale-leaseback transaction in late December.

• Financing Deals: A US$600 million debt restructuring was completed in August 2025 to provide an immediate cash infusion.

• Stake Sales: Negotiations to sell a minority stake in Bergdorf Goodman have been ongoing since September.

Despite these efforts, Days Beyond Terms (DBT; average number of days a company pays its suppliers past the invoice due date) data shows Saks Global has consistently delayed payments to suppliers, causing some luxury brands to withhold shipments. This inventory strain contributed to a 13% year-on-year revenue decline reported for the quarter ending in August.

Amid these financial challenges, Saks Global announced on Jan. 2 that Marc Metrick has stepped down as CEO. Executive Chairman Richard Baker has assumed the role of CEO. Baker, the owner of NRDC Equity Partners, has a background in retail and real estate and previously led the Saks Fifth Avenue Foundation.

Metrick, who spent nearly 30 years with the organization, led the group through its July 2024 formation and digital strategy overhaul. The company stated its departure was intended to allow him to pursue new opportunities.

Regional Impact, Market Competition

The proposed bankruptcy comes as luxury demand softens in the United States due to inflation and a cooling labor market, as previously reported by MBN. The merger of Saks and Neiman Marcus, backed by investors including Amazon and Salesforce, was intended to create a heavyweight to compete with Nordstrom and Macy's. However, multi-brand luxury retailers have struggled as consumers shift toward direct-to-consumer brand channels.

In Mexico, the luxury market remains robust, valued at approximately US$14 billion. However, Saks Global no longer maintains a physical presence in the country after Grupo Sanborns declined to renew its license in 2022, citing a lack of profitability. The Mexican luxury sector is currently driven by a 12% growth rate and high mobile platform engagement, with 71% of purchases occurring via mobile channels.