Saks Pursues $1 Billion Financing Deal to Sidestep Insolvency

Saks is looking for more options to save itself. The U.S. luxury department store chain is in negotiations with some of its creditors to obtain a loan of up to one billion dollars in order to avoid filing for bankruptcy, which could take place in the next few weeks.

Some of the company’s bondholders have reportedly discussed a loan that could include up to about $750 million in new funds and a possible accretion of existing debt to allow the company to continue operating after filing for bankruptcy, sources within the group have told Bloomberg.

The company had been in financial trouble for several years. The latest move resulting from the company’s crisis was the resignation of its CEO, Mark Metrick, on January 2nd, 2026, who was replaced by its former executive chairman, Richard Baker, who comes from the real estate sector. Metrick had been part of Saks for more than thirty years, where he had held the presidency since 2015.

Saks posted a net loss of $232 million at the end of the first quarter of 2025

Saks was due to pay an interest payment in excess of $100 million by December 30th, 2025, but the company behind the Saks Fifth Avenue luxury retail chain was unable to make it.

The company has devoted efforts in recent months to revive activity in the U.S. market, in the face of rising inflation and a weak labor market. During the past year, in fact,Saks attempted to sell a minority stake in Bergdorf Goodman, as well as some of its assets, such as a property in Beverly Hills.

In August of last year,Saks reached an agreement with its creditors to refinance $600 million, which forced them to accept losses and with which it managed to save itself from bankruptcy. Previously, it had carried out different processes focused on avoiding bankruptcy, such as a financing operation for $350 million from SRL Credit Solutions.

In July, the company announced its results for the first quarter of the year, with a net loss of $232 million, up from a net loss of $184 million in the first quarter of 2024, excluding Neiman Marcus.