Saks Global struggles to secure financing as bankruptcy looms

Saks Global is reported to be seeking up to $1 billion in debtor-in-possession financing to support operations during a potential Chapter 11 filing, but investors have shown limited interest after the company missed an interest payment; liquidation is among the possible outcomes if financing cannot be secured.

Saks Global is reported to be seeking up to $1 billion in debtor-in-possession (DIP) financing to maintain operations amid a possible Chapter 11 bankruptcy filing. People familiar with the discussions said prospective lenders have shown limited interest after the company missed an interest payment to bondholders. The company has declined to comment on investor interest. If a DIP loan cannot be obtained, liquidation becomes a more likely outcome. Known details: - Saks Global has been working to arrange a DIP loan that would fund payroll, rent and inventory during a Chapter 11 process. - Investors have shown limited interest in lending after the retailer missed an interest payment to bondholders. - If the company cannot secure DIP financing, it could be unable to pursue Chapter 11 reorganization and face liquidation under Chapter 7. - The company has been in talks with liquidators about some store closures, and its financial strain followed a heavily debt-financed acquisition in 2024. Summary: Saks Global's ability to secure debtor-in-possession financing will determine whether it can pursue Chapter 11 reorganization; without that funding, liquidation under Chapter 7 is more likely. Undetermined at this time.