After denials, 158-year-old retailer may file Chapter 11

"The lady doth protest too much, methinks."

Sometimes the classics tell the story and, in this case, Shakespeare's Hamlet applies.

Earlier this month, TheStreet published an analysis of Saks Global's financial situation. It did not paint a pretty picture.

Ragini Bhalla, head of brand and spokesperson for Creditsafe, shared data on the struggles Saks Fifth Avenue has faced, which could push the company into a Chapter 11 bankruptcy filing.

It’s important to note that Bhalla used publicly available financial information to analyze the company. Saks itself has not issued a going concern warning or made any public comment on a potential Chapter 11 bankruptcy filing.

“Saks Inc.’s Days Beyond Terms (DBT) data over the past twelve months reveals a persistent and troubling pattern of late payments that point to sustained cash flow distress. DBT measures how many days late a company pays its bills. Throughout the entire year, Saks’ DBT has hovered well above the industry average of 10-12 days, ranging from a low of 27 in November 2024 to a high of 41 in January 2025 and March 2025,” she shared in an email to TheStreet.

She then explained the info in very clear terms.

"This indicates that Saks has consistently taken nearly a month or more to pay its suppliers late," she wrote.

Despite the clarity of the information, which at least heavily suggested major financial concerns at Saks Global, the company denied that anything was wrong.

Saks denied it was considering bankruptcy

“We are making strong progress to reduce outstanding payments, invest in our transformation and drive improved performance. It is important to note that a restructuring is not being contemplated. We have sufficient liquidity after raising $600 million in financing this summer from existing bondholders. At the same time, with inventory levels normalizing and the significant synergies from our integration, we expect performance to improve through the holiday season and into 2026,” the company shared in a statement sent to TheStreet.

In addition, the company spokesperson took significant issue with the idea that the company was in any danger of filing Chapter 11 bankruptcy.

Those denials of bankruptcy, not even being considered by the Saks Global board, now ring very hollow.

Saks is at least considering bankruptcy

A number of major news outlets have now reported that Saks Global Enterprises has very much put a Chapter 11 filing on the table.

• Bloomberg:Saks Mulls Bankruptcy After Raising Billions for Turnaround
• PYMNTS:Saks Considers Chapter 11 Bankruptcy as $100M Debt Payment Comes Due
• BizJournals: Neiman Marcus parent reportedly considers bankruptcy

"Saks Global Enterprises, facing limited options ahead of a more than $100 million debt payment due at the end of this month, is considering Chapter 11 bankruptcy as a last resort, according to people with knowledge of the situation," Bloomberg reported.

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That is not the only option on the table.

"The company is also weighing additional ways to shore up liquidity, including raising emergency financing or selling assets, the people said, asking not to be identified because they’re not authorized to speak publicly," the news outlet reported.

In addition, some Saks lenders have held confidential talks in recent days to assess the company’s cash needs, according to other people familiar with the matter. Those discussions have focused on a potential debtor-in-possession loan, a form of bankruptcy funding.

Saks Global timeline

• 1867: The first Saks store opened in Washington, D.C., marking the beginning of what would become Saks Fifth Avenue. This is confirmed by the company’s own history page.
• 1902: Saks expanded into New York City with a store in Herald Square before moving uptown as the luxury shopping district shifted.
• 1924: The iconic Saks Fifth Avenue flagship store opened on Fifth Avenue in Manhattan, establishing its luxury retail presence.
• 1990: Saks launched its Saks OFF 5TH off‑price store concept, expanding into the discount designer segment.
• 2013: Canadian retail giant Hudson’s Bay Company (HBC) acquired Saks, Inc., which included Saks Fifth Avenue and Saks OFF 5TH, in a deal worth about $2.9 billion.
  Source: Saks Global
• 2024: HBC completed its acquisition of the Neiman Marcus Group and formed Saks Global, bringing Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman under one luxury retail umbrella, acccoirdng to a press release.
• 2025: Saks Fifth Avenue’s operations in Canada came to an end when Hudson’s Bay Company liquidated nearly all of its Canadian stores, including the Canadian Saks Fifth Avenue locations, reported Retail Insider.

Saks Global shared a statement

“Together with our key financial stakeholders, we are exploring all potential paths to secure a strong and stable future for Saks Global and advance our transformation while delivering exceptional products, elevated experiences and personalized service to our customers,” a representative for Saks said via email to Bloomberg.

PJT Partners, which is advising the company, declined to comment.

"Saks Global is the largest multi-brand luxury retailer in the world, comprising Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow," according to the company's website.

What happens when companies don't pay vendors

Being slow to pay vendors can lead to suppliers not being willing to ship to the company or offer it credit.

“The consistency of these elevated DBT figures without sustained improvements suggests that the company may be prioritizing other financial obligations over supplier payments, which can strain vendor relationships and weaken its supply chain resilience,” Bhalla wrote.

As a longtime retail observer, it's usually obvious when a company is approaching bankruptcy. In its final days before filing, JCPenney, for example, had notably less inventory on its shelves, which creates a vicious cycle.

If you have nothing to sell, you can't raise the cash to catch up with your debts.

A review of Saks’ publicly reported financials shows inconsistencies between the company’s statements and its actual cash flow performance. For example, Saks faces interest payments of more than $100 million due Dec. 30," according to data compiled by Bloomberg.

American Express shared a simple explanation of what happens when a company does not pay its vendors on time.

"If you consistently pay suppliers late, frustrations could mount. Suppliers could eventually sever ties with your business, leaving a gap in your supply chain that cannot easily be remedied. That could lead to a reduced product or service line, disgruntled customers, and lower sales. Worse, a reputation for late payments could ripple through the industry, making it hard to find new suppliers when you need them," American Express shared.

Related: Sneaker retailer files Chapter 11, closes most of its stores