Saks Global files for Chapter 11 bankruptcy

(CBS, KYMA) - Saks Global filed for bankruptcy protection late Tuesday, according to court documents entered in U.S. Bankruptcy Court in Houston, throwing the future of the roughly century-old high-end department store chain into doubt.

Saks Global is the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.

Saks also said it had secured a $1.75 billion financing package and that it would keep its stores open as the bankruptcy procedure plays out.

Saks recently missed a debt payment stemming from a 2024 deal by its parent company, Hudson's Bay Company, to buy rival luxury retailer Neiman Marcus for $2.65 billion, The Wall Street Journal reported in late December, citing people familiar with the matter.

Hudson's Bay raised $2 billion in debt to complete that deal, while Apollo Global Management affiliates provided an additional $1.5 billion in financing.

Amazon also took a minority stake in Saks to facilitate the deal.

Saks also missed a more than $100 million interest payment to bondholders, according to the Journal, which said the retailer has fallen behind on payments to vendors.

Some suppliers have responded by withholding shipments, leaving Saks with thinner merchandise offerings.