Saks Global is facing mounting legal and financial pressure as more vendors head to court over unpaid invoices, just as the luxury retailer scrambles to secure fresh funding and stave off a potential bankruptcy filing.
Vendor lawsuits pile up
Over the past two years, a growing list of brands and service providers has sued Saks Global and related entities, alleging nonpayment for apparel, accessories, jewelry, and services delivered under purchase orders, consignment deals, and advertising agreements. Recent suits include wear makers Jovani Fashion Ltd. and Catherine Regehr Inc., which together claim more than $400,000 is owed for goods sold between late 2024 and 2025.
Other plaintiffs range from trim and label supplier International Trimmings & Labels Inc. (seeking about $40,690) to digital ad firm Criteo Corp. (alleging $251,953 in unpaid fees), plus staffing agencies and accessories brands with claims running into the hundreds of thousands of dollars. Earlier cases dating back to 2023–2024 include travel case company Floyd GmbH (about $31,032 allegedly unpaid) and jewelry brand Lithos USA Inc., which says $325,706 is outstanding on consigned pieces and repairs.
A company on the brink
The legal onslaught comes as Saks Global reportedly considers a Chapter 11 bankruptcy filing after missing a $100 million interest payment on its debt, while at the same time exploring a potential $1 billion financing package to keep operating. Analysts describe the retailer as burdened with “excessive debt” and insufficient revenue to cover repayments and day-to-day operations without significant restructuring.
Leadership turmoil is adding to the uncertainty: longtime Saks Fifth Avenue chief Marc Metrick has stepped down as CEO, with executive chairman Richard Baker—who led the $2.7 billion acquisition of Neiman Marcus Group (including Neiman Marcus and Bergdorf Goodman) in 2024—now taking over the top job.
Vendors fear the bankruptcy “waterfall”
For vendors already in court, a formal Chapter 11 would likely trigger an automatic stay on their lawsuits and push their claims into the bankruptcy process as general unsecured debts. In that scenario, unpaid pre-filing invoices typically sit behind secured lenders and priority creditors in the payment “waterfall,” meaning suppliers often recover only a fraction of what they are owed—if anything—after months or longer of proceedings.
This prospect has sharpened tensions. Some brands have already stopped shipping to Saks Global, while others warn privately that they cannot afford to keep supplying without clarity on overdue balances. For many independent labels, wholesale orders from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman can represent over 50% of sales, making the risk of nonpayment especially destabilizing.
How Saks got here with vendors
Vendor frustration has been building since at least early 2024, when Metrick acknowledged an 18‑month backlog of overdue invoices and proposed a controversial plan to delay payments until summer and then stretch them over a full year. While executives later claimed relationships were improving, multiple brands say promised installments never materialized, reigniting concerns about the retailer’s cash position.
Some vendors also allege they were implicitly threatened with being dropped from the assortment if they pressed too hard on payment terms, further eroding trust at a time when Saks Global depends on them for fresh, diverse inventory to attract shoppers. In parallel, factors such as Hilldun Group have reportedly restricted shipments due to credit concerns, squeezing stock levels and making stores less appealing to luxury customers.
What’s at stake for luxury wholesale
The fallout from Saks Global’s troubles reaches far beyond one balance sheet. The fate of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman will shape the future of the U.S. luxury wholesale ecosystem, which many independent designers still rely on to reach high-spending shoppers. If Saks Global restructures through bankruptcy or fails to secure sufficient funding, labels could face significant write-offs, tighter credit, and an accelerated need to accelerate direct-to-consumer strategies.
For now, vendors are racing to protect their interests, whether by filing suit, halting shipments, or renegotiating terms, while Saks Global searches for a financial lifeline that could determine not just its own survival, but the health of a large swath of the American luxury retail landscape in 2026 and beyond.
