Updated 6:04 p.m. ET Sept. 18

Saks Global is thinking hard about selling off part of its crown to refill its purse — if it can.  

WWD has learned that the company is actively exploring “strategic options” for Bergdorf Goodman, the crowning jewel of its luxury retail empire. 

While sources said the company has held discussions about “joint venture opportunities” for Bergdorf’s earlier this year and tested the market for an outright sale, the focus now is said to be on selling a minority position that would value the high-end retailer at $1.5 billion to $2 billion. It could not be learned just how large a stake Saks Global might be willing to sell.

A Saks Global spokesperson said, “We do not comment on rumor or speculation.”

If a deal did materialize, it would go a long way to helping Saks stabilize its finances after the company piled on debt to buy Neiman Marcus and Bergdorf’s for $2.7 billion in December. 

Saks Global is carrying over $4 billion in debt and is in better standing with its vendors after a bit of refinancing this summer, but brands are still being cautious with their shipments to the company given its weighed-down balance sheet.

This month, Standard & Poor’s said Saks Global had $400 million in interest payments to make over the next year on top of payments for inventory, both current and past due. That leaves it reliant on its $1.8 billion asset-backed lending facility. 

“Our ‘CCC’ rating reflects default risk in the next 12 months without improvement,” S&P said. “While the new capital structure provides a much-needed infusion of cash, we expect liquidity will be rapidly depleted by the investments required to stabilize the business amid a challenging macroeconomic environment.”

Saks Global has been racing to integrate its Saks Fifth Avenue and Neiman Marcus businesses, cutting some $600 million in costs. But Bergdorf’s has been kept separate and is being operated on its own. 

A sale of Bergdorf’s — a Fifth Avenue institution — would go a long way to solving its financial problems, and free Saks chief executive officer Marc Metrick to push through a “reset” of his corner of the luxury retail world. 

But first, a deal would have to get out of the rumor phase and crystalize. And one stumbling block always remains: Whomever buys into Bergdorf’s only gets the store itself, and not the property it sits on. That continues to be owned by the Goodman family.

One financial source described the $1.5 billion to $2 billion valuation as “fair” or even “a bit low” for Bergdorf’s. 

“It’s attractive for a buyer and a good valuation for one of the two or three marquee retailers — Harrods, Takashimaya and Galeries Lafayette,” the source said. 

There are also a number of Middle Eastern funds with a taste for luxury or some other financial player that might take an interest in Bergdorf’s. 

But they’ve all had a shot at buying into the retailer before. 

Neiman Marcus Group’s former owners — lenders who took equity control after the company’s pandemic-induced bankruptcy — were said to have been shopping around Bergdorf’s when they first reached out to Saks Global, which led to the broader buyout. 

Similarly, other buyers might not content themselves with just a piece of Bergdorf’s. 

One banker said, “I heard no buyer wants a minority stake” and that prospective bidders “want to own the whole thing.”

Bergdorf’s is a rare retail property, with location, cache and legacy. 

Tracy Margolies, president of Bergdorf’s, emphasized the importance of giving shoppers “everything” when talking about the business at a pre-fashion week event this month. 

“Luxury is not just about the beautiful product,” Margolies said. “It’s about the experience.”

The Bergdorf shopper expects everything, she said. 

“But they’re not just going to get everything. They’re going to get surprised and delighted and expect the unexpected.”

Bergdorf’s will have over 120 events this fall as the store seeks to get ever closer to its shoppers. 

“We know that when our clients are in a relationship, they spend up to 12-times more,” Margolies said. “So we’re uber focused on the relationships that we have with all our clients and the experience.” 

Everyone who works at Saks and Neiman’s is keen to get back to focusing on those kinds of retail concerns after such a long and uncertain stretch.