Saks Global Enterprises, the parent company of luxury department store chain Saks Fifth Avenue, is considering a potential Chapter 11 bankruptcy filing as a last-resort option to address mounting liquidity constraints and near-term debt obligations, according to a Bloomberg report.
The publication reported that Saks is evaluating bankruptcy as part of a broader effort to manage its balance sheet rather than as an imminent filing.
The company faces a debt payment of more than $100 million due by the end of December, limiting its financial flexibility.
According to the report, which cited people with knowledge of the matter, Saks has been exploring several alternatives to avoid a court-supervised restructuring, including raising emergency financing, selling assets, and negotiating with lenders for additional liquidity.
The company has also been reassessing the priority of certain debt obligations as part of its broader turnaround efforts.
Saks Global has not publicly commented on the report.