Cash-Strapped Saks Skips Bond Payment Amid Talks With Creditors

Saks Global, the parent of Saks Fifth Avenue and Neiman Marcus, has missed an interest payment of more than $100 million on its bonds and is in active talks with creditors about a restructuring that could lead to a Chapter 11 bankruptcy filing in the coming weeks.​

What just happened

• Saks Global skipped an interest payment to bondholders of slightly more than $100 million that was due on Tuesday, triggering a contractual grace period rather than an immediate default.​

• The missed payment is tied to debt raised to fund Saks Global’s late‑2024 acquisition of Neiman Marcus and forms part of a roughly $2.2 billion capital structure that was already reworked in 2025.​

Where things stand now

• The company is now operating within the grace period while it negotiates with creditors over options that include emergency financing and a court‑supervised restructuring.​

• Saks Global is preparing for a potential Chapter 11 filing “within days” or weeks, and discussions include debtor‑in‑possession (DIP) financing to fund operations through bankruptcy.​

Why Saks is in trouble

• Weak U.S. luxury demand, higher inflation and a softer labor market have pressured sales at Saks, Neiman Marcus and Bergdorf Goodman, contributing to a 2025 revenue decline and tighter liquidity.​

• Bonds tied to Saks’ restructured debt have collapsed in price (with some tranches trading in low‑single‑digit cents on the dollar), signaling that investors expect heavy losses in any restructuring.​

Implications for bondholders and lenders

• By skipping the coupon but using the grace period, Saks gains time to negotiate a deal that could include maturity extensions, debt haircuts, equitization of some bonds, or a prepackaged Chapter 11.​

• Creditors are organizing and holding confidential talks to assess Saks’ cash needs and may provide DIP financing, which would sit at the top of the capital structure and prime existing bondholders.​

What it may mean for stores and customers

• A Chapter 11 filing would be aimed at restructuring debt while keeping core stores (Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman) operating, so near‑term store closures or disruptions are not yet a given.​

• Saks has been exploring asset sales, including real estate and a minority stake in Bergdorf Goodman, to raise liquidity, which could shift which banners or locations remain strategic over time.​