Beleaguered retail chain Saks Global is struggling to line up as much as $1 billion in financing to keep its business afloat during a potential Chapter 11 bankruptcy filing, CNBC has learned. 

The luxury chain has been working to secure a “debtor-in-possession” loan, which would allow it to fund operations in the event of a potential bankruptcy filing, people familiar with the matter said. But investors have so far shown little interest in lending Saks the money because they’re skeptical the company can successfully reorganize and pay them back, said the people, who spoke on the condition of anonymity because the discussions are private.

While DIP lenders get repaid before other creditors during bankruptcy proceedings, they don’t always recoup their full investment, and some investors are concerned that could happen if they finance Saks, the people said.

The storied 159-year-old department store, which now owns Neiman Marcus and Bergdorf Goodman, is both a destination and a symbol for luxury fashion, known for offering top brands like Chanel and Dior alongside up and comers like Good American. Across the entire enterprise, Saks Global has more than 70 full-line luxury stores and about 100 off-price locations. 

Since Saks missed an interest payment to bondholders late last month, only a “limited number” of investors have shown interest in financing the DIP loan, while a number of others have declined to get involved, the people said. 

Saks declined to comment on investor interest in its fundraising efforts.

A wide array of firms invest in companies that could be headed for bankruptcy, including top banks and private equity. However, the only firms likely to be interested in investing in Saks at this point are either liquidators that also have investment vehicles or alternative asset managers that have experience in distressed retail, one source said. Still, even some of those investors have declined to get involved with Saks’ DIP loan, the people said.

Liquidation is one of several potential outcomes Saks faces. However, if it can’t line up a DIP loan, which would be used to pay for essential expenses like payroll, rent and inventory, that scenario would be more likely. The retailer is already struggling to pay those costs.

Failure to line up financing would prevent Saks from filing for Chapter 11 bankruptcy, which would give the company a chance to reorganize and potentially find a buyer willing to take on its business as a going concern. It could then be faced with Chapter 7 bankruptcy, which is reserved for liquidation. 

That could mean the end for one of the most fabled department stores in history, whose flagship store on Fifth Avenue, considered by some to be its most valuable asset, has become a global destination. 

In the meantime, Saks has also been in talks with liquidators for a number of stores that are in the process of closing, but not yet the entire chain, the people said.

Saks’ troubles have been mounting since it acquired its longtime rival Neiman Marcus in a $2.7 billion deal in 2024, which was heavily financed with debt.

The tie-up between the two rivals was expected to create a luxury retail powerhouse that could better streamline costs and negotiate with vendors.

Instead, Saks has struggled to pay its vendors on time, leading to inventory gaps and declining sales. A slowdown in the overall luxury market, which has seen growth stagnate in recent years, has compounded the issues.

New federal dietary recommendations have sparked mixed reactions from the embattled restaurant industry, as changing guidelines could encourage Americans to dine out less often or choose from a smaller pool of restaurants when they do leave home.

The Departments of Health and Human Services and Agriculture unveiled the nutrition guidelines on Wednesday. The recommendations, which are updated every five years, pushed for higher consumption of protein and full-fat dairy and reduced intake of processed foods and sugary drinks.

The guidelines are primarily a public health tool for federal agencies, health-care providers and nutrition experts, so it’s unclear how much they will influence individual consumer choices. Although the recommendations largely focus on eating at home, they lightly touched on the restaurant industry as well.

“When dining out, choose nutrient-dense options,” the guidelines advise.

While the recommendations could discourage Americans from spending at restaurants — especially at a time when high inflation has curbed trips to dine out — some pockets of the industry had a positive reaction to the changes. The changes could give a particular boost to struggling fast-casual chains like Sweetgreen and Chipotle, which have long touted the type of natural ingredients championed by HHS Secretary Robert F. Kennedy Jr.’s “Make American Healthy Again” movement.

One lobbying executive who represents restaurant companies, whose organization was involved in meetings with the White House on the new guidelines, said the outcome could have been “far worse” for the sector. The person, who declined to be named because their organization was involved in private discussions, said the end result was better for the industry than proposed guidance from earlier in 2025 was. 

However, the executive said they are still concerned the guidelines could encourage Americans to eat at home when diners have affordable options to incorporate those foods at restaurants. That implication could also ruffle feathers among restaurant chains and their franchisees.

Despite those potential concerns from some, industry lobbying group the National Restaurant Association backed the new guidelines.

“Now, more than ever, restaurant operators are offering a wider variety of options, allowing consumers to choose what best fits their dietary needs, preferences, and lifestyles. We congratulate Secretary Kennedy and the Trump Administration on the release of the new guidelines and look forward to continued collaboration with policymakers to ensure that nutrition guidance remains practical, flexible, and supportive of access and innovation,” National Restaurant Association spokesman Sean Kennedy said in a statement to CNBC. 

Restaurant franchise lobbyist the International Franchise Association, called the approach “nuanced” and said it may limit the number of price increases restaurants have to make.

“Fortunately, the more nuanced approach of these guidelines helps ensure our members will not have to raise prices and that consumers can continue to make their own choices,” the group said. “Any future regulations or guidance must keep potential cost increases top of mind, as restaurant owners already face numerous regulatory burdens and supply chain challenges, which most often disproportionately affect small business owners, like franchisees, and ultimately, American consumers.”

Some of the most supportive reactions came from chains that had been beaten down in 2025, including Chipotle and Sweetgreen. Both fast-casual names saw pullbacks from younger consumers who continue to struggle in a K-shaped economy, where spending has concentrated more among the highest earners.

Sweetgreen, which was the biggest restaurant sector laggard last year with a nearly 80% stock decline, cheered the new guidelines.

A spokesperson told CNBC in a statement: “We keep ultra-processed ingredients and added sugars out of our restaurants, source transparently from partners we know and trust, and cook our food from scratch. That is why we are excited to see the new Food Pyramid so clearly emphasizing whole, real, and unprocessed foods.”

Sweetgreen founder and CEO Jonathan Neman wrote on X, “The U.S. government is for the 1st time urging Americans to avoid highly processed food, added sugar, and refined carbohydrates. Today, the government finally told the American people the truth. Avoid highly processed food (which is 70% of a child’s diet). Avoid refined carbohydrates.  CELEBRATE REAL FOOD… LFG!”

Similarly, Chipotle, which recently debuted a high protein and GLP-1 friendly menu, told CNBC it has already catered to similar dietary guidelines.

“Our menu of real ingredients makes it easy to follow the new dietary guidelines that prioritize high-quality protein, healthy fats, fruits, vegetables, and whole grains—while limiting highly processed foods and refined carbohydrates,” Chipotle spokeswoman Laurie Schalow said in a statement. “With real food made from wholesome ingredients—without artificial colors, flavors, or preservatives—Chipotle offers choices that fit a balanced, modern approach to eating.”

The company’s stock was down nearly 40% in 2025, but some Wall Street analysts have pointed to it as a potential winner in the new GLP-1 landscape, where users of the drugs often opt for smaller portions with more protein.

Kennedy has spearheaded the MAHA platform, championing a diet based on whole foods to prevent chronic disease. At times, his beliefs, like his advocacy for beef tallow and encouragement of more red meat in diets, have run afoul of both public health experts and industry players, like McDonald’s.

Kennedy’s criticism of processed foods has put fast-food chains on the defensive, although President Donald Trump is a vocal and loyal fan, particularly of McDonald’s.