According to reports, luxury retailer Saks Global is planning to file for Chapter 11 bankruptcy.

The group is allegedly preparing to file for bankruptcy without a restructuring deal in place. Although Saks Global plans to craft one in the coming weeks, said Reuters.

The company also discussed a $1.25 billion debtor-in-possession financing package with creditors. This would allow it to keep its business running during bankruptcy and pay vendor dues.

Under the proposed debtor-in-possession (DIP) financing, major creditors would provide about $1 billion in new funds to support the bankruptcy process.

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