Saks Faces Backlash With Brands

After several tense months, high-end store Saks Fifth Avenue is facing more trouble. Reports have surfaced indicating that the retailer allegedly owes numerous brands substantial amounts, potentially reaching hundreds of thousands of dollars.

As per a memo from Saks Global CEO Marc Metrick, brands expecting payments will have to be patient. Outstanding bills will be resolved through a sequence of 12 installments starting in July. However, Metrick has reassured vendors that any fresh orders will still be delivered within the usual 90 days after receipt, which is shorter than the standard 60-day industry practice.

Last year towards the end, news emerged about a $2.7 billion purchase of Neiman Marcus by the group. Interestingly, earlier this week, Saks Fifth Avenue declared the shutdown of Neiman Marcus’s iconic store in Dallas, Texas. However, it’s important to note that this closure is unrelated to the merger. Instead, employees from the Dallas location have been given transfer opportunities within the company as per official reports.

Although top executives express optimism, the financial hardships faced by Neiman Marcus bear some resemblance to those experienced by the historic New York retailer Barneys, which closed its doors in 2020 after almost a century of operation. To date, Neiman Marcus has not announced significant staff reductions, but it’s likely that several Saks and Neiman Marcus stores may need to shut down in the coming months.

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2025-02-21 20:26