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 didn’t paint a pretty picture.
Ragini Bhalla, head of the brand and spokesperson for Creditsafe, shared data about the struggles Saks Fifth Avenue faced, which could push the company into a Chapter 11 bankruptcy filing.
It is 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 about a potential Chapter 11 bankruptcy filing.
“Saks Inc. Days Beyond Terms (DBT) data over the past twelve months reveals a persistent and worrisome trend of late payments that indicate a sustained danger to cash flow. DBT measures how many days late a company pays its bills. Throughout the year, Saks’ DBT came in well above the industry average of 10-12 days in November 2027. 41 in January 2025 and March 2025,” she shared in an email to TheStreet.
She then explained the information 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 suggested many major financial concerns at Saks Global, the company denied that anything was amiss.
Saks Global is considering filing for bankruptcy.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Saks Global is considering filing for bankruptcy.Shutterstock
“We are making strong progress to reduce outstanding payments, invest in our transformation and deliver improved performance. It is important to note that no restructuring is 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 the performance of the season improve the company and share in 2022. sent to TheStreet.
Additionally, the company’s spokesperson took significant issue with the idea that the company was in any danger of filing for Chapter 11 bankruptcy.
Those bankruptcy filings, which were not even considered by Saks Global’s board, are now very hollow.
A number of major news outlets have now reported that Saks Global Enterprises has put many Chapter 11 filings on the table.
“Saks Global Enterprises, which is facing limited options before a debt payment of more than $100 million 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 raise cash flow, including raising emergency financing or selling assets, the people said, asking not to be identified because they are not authorized to speak publicly,” the news outlet reported.
In addition, some of 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 focused on potential debtor-in-possession loans, a form of bankruptcy financing.
1867: The first Saks store opened in Washington, DC, 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 changed.
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 conceptexpand 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 has completed its acquisition of the Neiman Marcus Group and formed Global Scissorswhich brings Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman under one luxury retail umbrella, according to a press release.
2025: Saks Fifth Avenue’s Canadian operations ended when Hudson’s Bay Company liquidated nearly all of its Canadian stores, including Saks Fifth Avenue’s Canadian locations, Retail Insider reported.
“Together with our key financial stakeholders, we are exploring all potential avenues to ensure 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, which includes Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow,” according to the company’s website.
Being slow to pay vendors can make suppliers unwilling to ship to the company or offer it credit.
“The consistency of these elevated DBT figures without sustained improvement suggests that the company may be prioritizing other financial obligations over supplier payments, which could strain vendor relationships and weaken the resilience of its supply chain,” Bhalla wrote.
As a long-time retail watcher, it’s usually obvious when a company is headed for bankruptcy. In its final days before the filing, JCPenney, for example, had noticeably less inventory on its shelves, creating a vicious cycle.
If you have nothing to sell, you cannot raise money to meet 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 on December 30,” according to data compiled by Bloomberg.
American Express shared a simple explanation of what happens when a company doesn’t pay its vendors on time.
“If you consistently pay suppliers late, frustrations can mount. Suppliers can eventually cut ties with your business, leaving a gap in your supply chain that cannot be easily remedied. This can lead to a reduced product or service line, disgruntled customers, and lower sales. Worse, a reputation for late payments can ripple through the industry, making them hard to find,” making them hard to find. the industry.
Related: Sneaker retailer files Chapter 11, closes most of its stores
This story was originally published by TheStreet on December 30, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
