Saks Global is exploring the sale of a minority stake in luxury department store Bergdorf Goodman in a bid to offload debt.

The company, which also owns upscale department store chain Saks Fifth Avenue, plans to sell a 49 per cent stake in the New York-based business and is in talks with at least four bidders, according to reports from Reuters and the Wall Street Journal.

The potential sale, valued at $1 billion, is expected to help reduce debt from the company’s acquisition of Neiman Marcus.

A spokesperson said the deal would “maximize the potential” of Saks’ assets, though no final decision has been made. 

Founded in 1899 by Herman Bergdorf, Bergdorf Goodman operates a women’s store and a men’s store across the street from each other on Fifth Avenue in Midtown Manhattan. The sale only includes the stake in the operating company, not the building and real estate of the department store, the Journal said.

Hudson’s Bay Company established Saks Global last July after acquiring department store chain Neiman Marcus for $2.65 billion. The company combines Saks Fifth Avenue, Neiman Marcus and other luxury retail and real estate assets.

The latest move comes as Saks Global suffers from heavy debt and falling sales amid a slowdown of the wider luxury segment and tariff concerns.

Last month, the company reportedly laid off 90 employees, marking the third round of job cuts since the entity was created.

In May, the company announced plans to remove up to 600 brands from its portfolio to focus on a smaller mix of ‘controlled brands’ and improve margin.