Saks Global Enterprises is in discussions to secure a $1 billion loan to maintain operations as it prepares for a potential Chapter 11 bankruptcy filing in the coming weeks, according to sources familiar with the matter. The luxury retailer, facing significant financial strain, missed a Dec. 30 interest payment exceeding $100 million to its bondholders.

The company has been in negotiations with some of its creditors regarding a forbearance agreement, the sources said, who requested anonymity due to the private nature of the discussions. Such an agreement could provide Saks Global Enterprises with additional time to finalize a financing arrangement or develop a comprehensive reorganization plan.

The potential bankruptcy of Saks Global Enterprises would send ripples through the luxury retail market. A Chapter 11 filing could disrupt supply chains and impact competitor performance as the market adjusts to the uncertainty. The company's struggles reflect broader challenges facing brick-and-mortar retailers in an increasingly competitive landscape dominated by e-commerce and shifting consumer preferences.

Saks Global Enterprises, a prominent player in the luxury retail sector, has been grappling with declining sales and mounting debt in recent years. The missed interest payment and the pursuit of a substantial bankruptcy loan underscore the severity of its financial difficulties.

The outcome of the loan negotiations and the potential bankruptcy proceedings remain uncertain. The company's ability to secure the necessary financing and successfully reorganize its operations will be crucial in determining its long-term viability. The coming weeks will be critical as Saks Global Enterprises navigates these complex financial challenges.