Saks Global Enterprises is looking to line up a loan of as much as $1 billion to keep the business running as part of a Chapter 11 bankruptcy filing that could happen in coming weeks, according to people familiar with the situation. 

The cash-strapped luxury retailer, which skipped an interest payment to bondholders due Dec. 30 totaling more than $100 million, has been negotiating a forbearance with some of its creditors, said the people, who asked not to be identified because the talks are private. That could buy the company more time to hammer out a financing agreement or craft a reorganization plan.

Some Saks bondholders have discussed a so-called debtor-in-possession loan that may include at least $750 million of new money and a potential roll-up of existing debt to allow the company to continue operating after it files for bankruptcy, the people said. Still, the situation is fast-moving and the structure of any financing could change, they said.

Messages with Saks were not returned, while a representative with company adviser PJT Partners declined to comment. The New York Post earlier reported some details of a potential DIP loan.

Saks, whose roots go back more than 150 years, has been rushing to plug its liquidity shortfall amid inventory and cash-flow pressures. It reached a tipping point about 12 months after raising billions of dollars from bond investors for a turnaround plan that involved acquiring Neiman Marcus.

In June, creditors agreed to provide Saks hundreds of millions of dollars more as part of a debt deal that reorganized the repayment line, creating multiple tiers with differing claims on the company’s assets. 

But the company has continued to struggle with lackluster sales and inventory issues. Amid its financial woes, Saks said Friday its Chief Executive Officer Marc Metrick was stepping down, with Executive Chairman Richard Baker replacing him. 

The chain operates its flagship Saks Fifth Avenue stores along with Bergdorf Goodman and Neiman Marcus. In October, it cut its full-year guidance after reporting declining sales tied to inventory-management challenges. It reported a 13% year-over-year drop in revenue to $1.6 billion in the second quarter.

At the time, management said it had been exploring the sale of a minority stake in Bergdorf Goodman to raise funds.