Finance
Saks in talks for $1 billion loan to keep doors open, Bloomberg New reports
Published by Global Banking and Finance Review
Posted on January 4, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 4, 2026
Jan 4 (Reuters) - Saks Global Enterprises is in talks to secure a loan of about $1 billion as it prepares for a possible Chapter 11 bankruptcy filing in the coming weeks, Bloomberg News reported on Sunday citing people familiar with the matter.
The luxury retailer missed a $100 million interest payment due December 30 and is negotiating a forbearance with creditors to buy time for a financing deal or reorganization plan, the report said.
Saks Global did not immediately respond to a request for comment. Reuters could not immediately verify the report.
Bondholders have discussed a debtor-in-possession (DIP) loan structure that could include at least $750 million in new money and a roll-up of existing debt to allow the New York-based company to continue operating after it files for bankruptcy, the Bloomberg report added.
Earlier this month, Marc Metrick stepped down as chief executive of the company and Richard Baker was named as his successor.
(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Edmund Klamann)
Chapter 11 bankruptcy is a legal process that allows businesses to reorganize their debts while continuing operations. It provides a framework for companies to restructure their finances and pay creditors over time.
A debtor-in-possession (DIP) loan is a financing option available to companies undergoing Chapter 11 bankruptcy. It allows the company to borrow money to continue operations while restructuring its debts.
Interest payments are the costs incurred by borrowers for using borrowed funds. They are typically calculated as a percentage of the principal amount and are paid periodically until the loan is repaid.
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