• by Sarah Mahoney , December 29, 2025

As Saks Global scrambles to meet a $100 million debt payment due this month, the luxury retailer is confronting not just a balance-sheet crunch, but a broader credibility test. According to Bloomberg, the company is weighing multiple options to raise cash — and while bankruptcy is described as a “last resort,” the possibility is still on the table.

The financial strain comes amid a turbulent restructuring effort and fresh reputational risk. TheWall Street Journalreports that Saks is alleging fraud and larceny charges tied to a former stylist at its Boston store, a case that has drawn renewed scrutiny of the company’s internal controls at a moment of heightened vulnerability.

Saks Global was formed last year by Hudson’s Bay Company, following its $2.65 billion acquisition of the struggling Neiman Marcus. The deal combined Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, along with Saks Off Fifth, its off-price unit. The consolidation aimed at stabilizing the luxury portfolio and finding efficiencies, but also required significant new debt.

That includes $1.15 billion from Apollo Global Management and roughly $2 billion in financing from a syndicate of Wall Street banks, Bloomberg reports. Since then, the company has been dogged by reports of late or missed payments to suppliers, adding pressure to relationships that are critical to maintaining inventory, exclusivity and brand perception.

Bloomberg also reports that some Saks lenders have held confidential discussions to assess the company’s liquidity needs, including the possibility of a debtor-in-possession loan, a financing option typically associated with bankruptcy proceedings.

Leadership turnover hasn’t helped. In recent months, several senior executives have departed, including Emily Essner, president of Saks, and the company has reportedly explored selling a minority stake in Bergdorf Goodman as a way to raise cash.

Separately, Saks is pursuing legal action against Suhail Kwatra, a former stylist in its Boston store known as “the Fashion Whisperer.” The company told police that total losses exceeded $400,000, citing fraudulent refunds, misuse of promotional cards and unpaid merchandise provided to clients. Kwatra, through an attorney, has denied the allegations. While the charges stem from three incidents involving more than $11,000 in disputed refunds, the Journal reports that several current and former clients allege broader mismanagement of purchases and returns over multiple years.

Taken together, the debt deadline, supplier tensions and legal dispute underscore the challenge Saks Global faces in restoring confidence — not just among lenders, but among brands, partners and high-value customers — as luxury spending slows and scrutiny of operational discipline intensifies.