The news: Saks Global is looking to secure a loan of as much as $1 billion to remain operational as it prepares to file for bankruptcy, per Bloomberg.

A rocky beginning: 2026 is off to a tumultuous start for the beleaguered department store operator.

• The company is now under new leadership. CEO Marc Metrick stepped down last week after Saks missed an interest payment of over $100 million on the debt incurred to finance its Neiman Marcus acquisition. Executive chairman Richard Baker is in charge.
• Vendors are withholding inventory. Hilldun Corp., which helps provide financing for about 140 brands that sell to Saks, has put every order “on hold until Saks clarifies to the industry what they intend to do,” CEO Gary Wassner told Business Insider. He noted that the retailer will have to move quickly or risk being understocked for the spring season.
• A Chapter 11 bankruptcy filing is expected within days, which could further pressure the company’s cash flow and inventory issues—and give rivals like Nordstrom and Bloomingdale’s further opening to take share.

Our take: Acquiring Neiman Marcus could end up being Saks’ downfall. The deal saddled the company with a debt load that is now consuming resources needed to operate the business. Saks is struggling to pay vendors, leading to inventory challenges that diminish its appeal to shoppers. With sales falling sharply, the retailer appears trapped in a vicious cycle, one that leaves it running out of both time and options for a turnaround.