Saks Global is reportedly preparing to file for Chapter 11 bankruptcy as soon as Sunday, according to Bloomberg News. The luxury retailer, which owns the iconic Saks Fifth Avenue flagship in New York, plans to file without a restructuring deal in place, though it aims to negotiate one in the coming weeks.

The company is in advanced discussions for a debtor-in-possession financing package of around $1.25 billion with creditors to maintain operations during bankruptcy and pay vendors. This filing comes after years of financial strain, including heavy debt from the 2024 merger of Saks and Neiman Marcus under Hudson’s Bay Company, compounded by a slowdown in global luxury sales. Creditors are expected to provide about $1 billion in new funds, with additional support possible through rolled-up loans and future investments once restructuring is underway.