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Like a grand chandelier flickering before the lights go out, Saks Global Enterprises is weighing a potential Chapter 11 bankruptcy filing as mounting debt and tightening liquidity press down on one of America’s most storied luxury retail empires.

People familiar with the situation told Bloomberg that Saks Global — the parent company of Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman — is considering bankruptcy protection as it confronts a debt payment exceeding $100 million due by the end of December.

Mounting Debt and Emergency Options

According to sources, Saks Global has been scrambling to secure emergency financing and bolster cash reserves, including the possible sale of assets. Bankruptcy, however, remains the company’s last line of defense if liquidity cannot be stabilized in time.

Behind closed doors, some of the retailer’s lenders have already held confidential discussions to evaluate Saks’ immediate cash needs. Those talks reportedly included consideration of a debtor-in-possession loan — a form of financing typically arranged during bankruptcy proceedings to keep operations running.

At the same time, uncertainty at the top has added another layer of tension. Reports circulating Tuesday suggested that CEO Marc Metrick may be preparing to step down, further fueling speculation about the company’s next move.

FOX Business reached out to Saks for comment, but no response was immediately provided.

A High-Profile Merger, Followed by Financial Strain

Metrick assumed leadership in December 2024, shortly after Saks Global finalized its $2.7 billion acquisition of Neiman Marcus Group. That deal folded Neiman Marcus and Bergdorf Goodman into Saks’ portfolio and placed Metrick at the helm of the newly formed Saks Global Operating Group, overseeing Saks Fifth Avenue and Saks OFF 5TH.

At the time, Executive Chairman Richard Baker hailed the transaction as creating “an unparalleled multi-brand luxury portfolio with tremendous growth potential.” Yet since then, the company has been under steady financial pressure, working to contain costs and preserve cash.

Over the past year, Saks has cut hundreds of jobs and closed stores and corporate offices. Its retreat has been especially pronounced in Canada, where Saks Fifth Avenue, Saks OFF 5TH, and Hudson’s Bay stores shuttered most of their locations, according to Retail Insider.

More Closures Ahead

The retrenchment is far from over. Saks plans to continue closing stores next year, including certain Saks OFF 5TH locations beginning in early 2026. The company has described the move as part of a broader strategy to “optimize” its store footprint amid shifting consumer behavior and ongoing financial strain.

In September, reports also emerged that Saks was exploring the sale of a minority stake — roughly 49% — in Bergdorf Goodman, valuing the luxury retailer at about $1 billion. People familiar with the matter told The Wall Street Journal that at least four potential bidders had expressed interest, with a deal possibly materializing as early as next year.

An Industry Under Pressure

The potential Saks bankruptcy filing underscores the challenges facing department stores in an era marked by rising costs, changing shopping habits, and fierce competition from online and international luxury brands. Even iconic names, once seen as untouchable, are now navigating a narrow path between reinvention and restructuring.

As the December debt deadline approaches, all eyes remain on Saks Global’s next move — whether it can stitch together enough financing to stay out of court or whether bankruptcy protection becomes the runway for its next chapter.