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Saks Global, the owner of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, is facing growing pressure to secure more than $1 billion in new financing as it struggles with heavy debt, missed payments, and a sudden leadership change.

The luxury retailer is racing to raise cash after failing to make a $100 million interest payment tied to the $2.7 billion debt it took on to buy Neiman Marcus last year.

That missed payment has raised fears of a possible bankruptcy filing if funding talks fall apart.

Sources familiar with the situation say the company is now in discussions with both new and current investors to avoid that outcome.

At the same time, Saks Global announced that longtime CEO Marc Metrick has stepped down after nearly a decade leading the company, EconoTimes reported.

Executive Chairman Richard Baker has taken over the role, returning as CEO during one of the most difficult periods in the retailer's history.

Metrick said he was proud of his work building the brand and its online business and is leaving to pursue new opportunities.

Behind the scenes, Saks Global is dealing with more than just bondholders. The company also owes millions of dollars to vendors, some of whom have reportedly not been paid in full for over a year.

This has added strain to relationships with suppliers who keep stores stocked. One source said talks around financing could wrap up within weeks, but stressed that nothing has been finalized.

Sales Drop Adds Strain on Saks Global's Finances

Reports of financial trouble increased after it became clear the company was using a 30-day grace period to delay the missed interest payment.

If talks fail, the company could turn to debtor-in-possession financing, a type of loan used during Chapter 11 bankruptcy that allows businesses to keep operating while they reorganize.

According to NY Post, sales troubles have added to the pressure. Saks Global's revenue dropped 13% in its most recent quarter, which ended in early August.

Demand for luxury goods has slowed, hurting high-end retailers across the industry.

The company has already closed a Saks Fifth Avenue store in San Francisco and recently sold the land under its Beverly Hills Neiman Marcus store, choosing to lease it back to raise cash.

Despite the challenges, Saks Global still owns valuable real estate and well-known brands.

Earlier this year, it raised $600 million from bondholders and has explored selling a minority stake in Bergdorf Goodman.

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