Saks in Talks for $1 Billion Bankruptcy Loan to Keep Doors Open

Core Viewpoint - Saks Global Enterprises is preparing to secure a loan of up to $1 billion as part of a Chapter 11 bankruptcy filing anticipated in the coming weeks [1] Financial Situation - The luxury retailer has missed an interest payment exceeding $100 million due on December 30 and is negotiating a forbearance with creditors to gain time for a financing agreement or reorganization plan [2] - Discussions among bondholders include a debtor-in-possession loan potentially comprising at least $750 million in new funds and a roll-up of existing debt to facilitate operations post-bankruptcy filing [3] Company Background - Saks has a history of over 150 years and is currently facing liquidity challenges due to inventory and cash-flow pressures, reaching a critical point after raising billions from bond investors for a turnaround plan involving the acquisition of Neiman Marcus [5] - The company has struggled with declining sales and inventory management issues, leading to a 13% year-over-year revenue drop to $1.6 billion in the second quarter [7] Leadership Changes - Amid financial difficulties, the CEO Marc Metrick has stepped down, with Executive Chairman Richard Baker taking over the role [6]