"The shine, however, masks a retailer under pressure. On Friday, Saks named a new CEO, capping a tumultuous 12 months for the heavily leveraged department store owner. After months of restructurings, lawsuits, missed payments, and broken promises, Saks Global is now facing the possibility of a Chapter 11 bankruptcy. What happens next could have consequences for customers. Brands - some of which haven't been paid in full for over a year - have paused shipments to Saks' stores, and creditors are awaiting news of its financial future."
"In early December, Hilldun Corp., which acts as a sort of guarantor or insurer for brands, said it would no longer back shipments to Saks. The firm represents about 140 brands that sell to Saks - in the past, it's worked with big names like Tommy Hilfiger, Marc Jacobs, and A.L.C. - and supplies the retailer with at least $500 million worth of product annually. Hilldun's delay was expected to be short-lived, but shipments were still on hold as 2025 came to a close amid growing reports that Saks Global, which also owns Bergdorf Goodman and Neiman Marcus, was considering a court-supervised reorganization."
Saks Fifth Avenue and its parent Saks Global face severe financial strain after a year of restructurings, lawsuits, missed payments, and leadership change. Brands and insurers have paused or halted shipments, with Hilldun Corp. withdrawing backing for roughly 140 brands and about $500 million in annual product supply. Shipments remained on hold into late 2025 as reports suggested the company might pursue a court-supervised reorganization including its sister businesses Bergdorf Goodman and Neiman Marcus. Industry leaders warn of lost spring inventory if the retailer does not clarify its financial plans quickly. Saks says it is exploring all potential paths with key financial stakeholders.
Read at Business Insider
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