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New York, NY--Saks Global is evaluating a potential Chapter 11 bankruptcy filing as it works to meet a debt payment of more than $100 million due at the end of the month, according to a Bloomberg News report published by Reuters. The report said the company is considering bankruptcy only as a last option while pursuing emergency funding and possible asset sales.

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“We are exploring all potential paths to secure a strong and stable future for Saks Global,” a company spokesperson told the outlet after the report was published.

The report stated that some Saks Global lenders have held confidential talks to assess the company’s cash needs, including a possible debtor-in-possession loan typically used during bankruptcy proceedings.

In September, a Saks Global spokesperson told Reuters the company was looking to sell a minority stake in Bergdorf Goodman to reduce debt. The company has faced weak U.S. luxury demand amid inflation and a soft labor market, which has pressured spending on discretionary goods.

Saks Global was formed in July last year by Hudson’s Bay Company after its $2.65 billion acquisition of Neiman Marcus. As per the report, the deal combined Saks Fifth Avenue, Neiman Marcus and related assets to compete with Nordstrom, Bloomingdale’s and Macy’s. The report highlighted that HBC financed the Neiman Marcus acquisition with shareholder funds and debt, including $1.15 billion from Apollo Global Management, and secured $2 billion in debt financing from a syndicate of Wall Street banks.

Learn more in this report on Reuters.