Saks Group reportedly preparing to file bankruptcy after missing debt payment
CNBC••business
Key Points:
- Saks Global is preparing to file for bankruptcy after missing a $100 million interest payment on bonds tied to its Neiman Marcus acquisition, according to The Wall Street Journal.
- The company is negotiating with creditors to secure financing for the bankruptcy process amid challenges in reviving demand due to inflation and a weakening labor market.
- Over the past year, Saks Global sought to reduce debt by attempting to sell a minority stake in Bergdorf Goodman and raising cash through asset sales, including a Beverly Hills property.
- Saks Global was formed in July 2024 by Hudson's Bay Company after acquiring Neiman Marcus for $2.65 billion, combining Saks Fifth Avenue, Neiman Marcus, and other luxury assets to compete with major department stores.
