Saks Global is preparing to file for bankruptcy in the coming weeks after missing a debt payment tied to its Neiman Marcus acquisition, the Wall Street Journal said Wednesday, citing people familiar with the matter.

The parent of high-end department store chain Saks Fifth Avenue failed to make an interest payment of over $100 million due on Tuesday on its bonds, and is in talks with its creditors to secure financing for the bankruptcy process, the report added.

Saks Global did not immediately respond to a Reuters request for comment.

The company has been struggling to revive demand in the U.S. as rising inflation and a weakening labor market have curbed discretionary spending, including on luxury items.

Over the past year, the company was looking to sell a minority stake in luxury retailer Bergdorf Goodman to help reduce debt, a Saks Global spokesperson told Reuters in September.

During this period, it also aimed to raise cash through the sale of assets like a Beverly Hills property, the Wall Street Journal report said.

In August 2025, Saks Global completed a debt restructuring that included about $600 million in new money and an exchange of its $2.2 billion senior secured notes.

Hudson’s Bay Co. created the firm in July last year following its $2.65 billion acquisition of department store chain Neiman Marcus.

The move combined Saks Fifth Avenue, Neiman Marcus and other luxury retail and real estate assets to better compete with department store operators such as Nordstrom, Bloomingdale’s and Macy’s.

The deal was funded by new investors such as Amazon, Authentic Brands Group, Salesforce and others, along with $2.2 billion in senior secured notes and an asset-based credit facility.