Saks Global Weighs Chapter 11 Bankruptcy Filing

Saks Global Enterprises, the luxury retailer formed by the merger of Saks Fifth Avenue and Neiman Marcus, is weighing a Chapter 11 bankruptcy filing as a last resort ahead of a more than $100 million interest payment due on December 30, according to people familiar with the matter.

The company, which operates Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th, has been grappling with mounting financial pressures since completing its $2.7 billion acquisition of Neiman Marcus a year ago. That deal, financed largely through billions in bonds, aimed to consolidate the brands into a dominant player in U.S. luxury retail, backed by technology investments from partners including Amazon and Salesforce. Instead, it exacerbated the company's debt load and failed to address persistent operational challenges, including delayed payments to vendors that led several suppliers to halt shipments this year.

In June, Saks secured hundreds of millions in additional funding from creditors through a restructuring that prioritized certain bondholders. An August refinancing brought in $600 million more, but liquidity concerns persisted. By October, the company reported declining sales...