Overview
- The parent of Saks Fifth Avenue skipped more than $100 million in bond interest due Tuesday and entered a grace period.
- The company is negotiating with creditors on liquidity and is preparing a Chapter 11 filing in the coming weeks, according to reports.
- Some lenders are evaluating a debtor-in-possession loan to fund operations through a potential court process.
- Recent cash-raising efforts included exploring a minority sale of Bergdorf Goodman and marketing a Beverly Hills property.
- An August restructuring added about $600 million and exchanged $2.2 billion of notes, yet sales declined 13 percent in the second quarter and guidance was cut.