The parent of high-end department store chain Saks Fifth Avenue failed to make an interest payment of over $100 million due on Tuesday on its bonds, and is in talks with its creditors to secure financing for the bankruptcy process, the report added.

Saks Global did not immediately respond to a Reuters request for comment.

The company has been struggling to revive demand in the U.S. as rising inflation and a weakening labor market have curbed discretionary spending, including on luxury items.

Over the past year, the company was looking to sell a minority stake in luxury retailer Bergdorf Goodman to help reduce debt, a Saks Global spokesperson told Reuters in September.

During this period, it also aimed to raise cash through the sale of assets like a Beverly Hills property, the Wall Street Journal report said.