Back in 1993, Shoshanna Lonstein Gruss, then just Shoshanna Lonstein, became a tabloid darling for dating Jerry Seinfeld at the height of his sitcom fame.
This was before she could be famous on social media, but essentially, she was one of the first influencers, parlaying the fame of her four-year relationship into a successful career as a fashion designer.
Lonstein Gruss was a rare person, back in those days, who managed to turn fame by association into a real career. Her Shoshanna clothing brand was respected and enduring, not an attempt to capitalize on her name recognition, as happened with Monica Lewinsky’s handbag line, or in a more recent example, Mike “The Situation” Sorrentino’s “Situation Nation” clothing line.
Shoshanna operates her own store, while also being sold at retailers including Saks Fifth Avenue, Neiman Marcus, and Bloomingdale’s. He also has some items for sale on Amazon.
Now the retail brand has filed for Chapter 11 bankruptcy, on the same day that Saks Global and Neiman Marcus also filed. (It is important to note that the company behind the Shoshanna brand uses a slightly different spelling – ie, Shoshanah Fashions.)
Lonstein Gruss may have started out as a tabloid figure, but she has a deep history as a respected fashion designer.
“After 27 years of dedication and innovation, the Shoshanna collection has developed a legion of fans, including Mindy Kaling, Isla Fisher, Kelly Ripa, and The Duchess of Sussex, Meghan Markle. The collection can be found in luxury retailers such as Bergdorf Goodman, Neiman Marcus, Saks Fifth Avenue, Bloomingdale’s, as well as Anthropologie and Shops, Shops as well as specialty stores. in the United States, Canada, Europe and Asia,” the company said on its website.
Shoshanah Fashions has not made a public statement about its Chapter 11 bankruptcy filing. The filing, however, came on the same day that Saks Global filed for Chapter 11 bankruptcy.
Saks Global’s Saks Fifth Avenue and Neiman Marcus are key distribution partners for Shoshanna Fashions, and the brand is almost certainly owed money by its partner, according to data shared with TheStreet by Ragini Bhalla, Head of Brand and Spokesperson for Creditsafe.
“Saks Inc. had a persistent and disturbing pattern of paying vendors late in 2025, indicating sustained liquidity problems. Days Beyond Terms (DBT) refers to the number of days late (ie, past due payment terms) that a company pays its bills. One of the the most common indication that a company is struggling with cash flow is when it is its DBT significantly higher than other companies in the same industry,” the research showed.
Saks’ DBT hovered between 30 and 41 between January and December 2025, which was more than three times higher than the industry DBT average of around 9.
Between June and September 2025, the company’s DBT increased consistently from 30 to 41 — a 37% increase in just three months.
Towards the end of the year (October to December 2025), the company’s DBT was around 32 to 33. This means that the company typically paid vendors more than a month late.
“If a vendor and Saks agreed to Net 90 payment terms, this means they may not be paid for a single invoice for at least 4 months after placing orders or completing services for Saks. While some larger vendors may have been able to wait that time to be paid, small and mid-sized vendors may not have had that luxury and could make their own financial decisions.”
Seller payment timing is one of the most critical, and fragile, parts of the retail business model.
When sellers delay payments to suppliers while continuing to demand standard delivery schedules, sellers are forced to finance production themselves. This often means borrowing at high interest rates or stretching their own payables, which increases financial risk along the supply chain.
In today’s high-rate environment, those delays are especially damaging, turning what might once have been manageable short-term gaps into long-term liquidity crises.
Saks’ Chapter 11 bankruptcy had a ripple effect on its suppliers.
“Within days, the exposure profile became unavoidable. Any organization that relies on leveraged retail partners, extends trade credit, underwrites retail risk, or finances inventory is now on the perimeter of risk,” reported Lawyer Monthly.
Shoshanah Fashions, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court at January 14, 2026.
The case is listed as Case No. 26-10083 (Chapter 11)indicating a voluntary filing of bankruptcy.
The filing is part of a wider trend of retail and clothing sector failures in 2025-2026 which includes other retailers (eg, Joann and Saks Global).
Like many early Chapter 11 cases, detailed court documents (eg, asset/liability schedules, lists of creditors, reorganization plan) have not yet been widely published or reported. Source: PacerMonitor
The bankruptcy of Saks Global will have an impact on its retailers.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
The bankruptcy of Saks Global will have an impact on its retailers.Shutterstock ·Shutterstock
Because Saks Global intends to continue operating, it must reach an agreement with vendors regarding unpaid bills. It is likely that the sellers will not receive what they had, according to Bhalla.
“Because Saks also defaulted on debt payments and filed for bankruptcy, it increases the likelihood that some vendors may never be paid for work completed or orders completed. This data suggests that Saks has been struggling with liquidity and liquidity for some time, contributing to its damaged relations with suppliers. Ultimately, Saks’ failure to addressing these challenges likely played a role in her bankruptcy filing,” she wrote.
Saks has struggled to line up financing for its Chapter 11 filing, according to CNBC.
“Prior to the filing, Saks secured $1.75 billion in new financing from a group of the company’s senior secured bondholders and asset-based lenders. The lion’s share, $1 billion, is debtor-in-possession financing that will be used to finance operations while the company is in Chapter 11 while an additional $50 will be available to the company after the bankruptcy. website reported.
Even if the sellers get partial payments, that process can take months as the bankruptcy works its way through the courts.
More Failure:
Saks made a plan last year to pay off balances they paid.
“On February 14, the newly formed Saks Global announced its plan to pay vendors overdue balances in 12 installments starting in July,” JD Supra reported.
The bankruptcy process is not bound by a previous agreement.
Established in 1998 by the designer Shoshanna Lonstein Gruss in New York City.
Brand Focus: Elegant and feminine women’s fashion, primarily dresses, evening wear, and swimwear.
Signature Style: Known for flattering silhouettes, bold colors, and distinctive details; emphasizes femininity and fit.
Retail presence: They are carried in high-end retailers such as Saks Fifth Avenue, Bloomingdale’s, Neiman Marcusand specialty boutiques in North America and internationally.
Swimwear innovation: early adopter of size inspired lingerie in bathing separatessetting a trend for more personalized fit in swimwear fashion.
Brand Growth: Expanded from dresses and evening wear to include resort wear, swimwear, and seasonal collectionsbuild a strong loyal customer base. Source: Shoshanna.com
Lonstein Gruss shared some of her fashion process with Fashion Weekly in July.
“The creative process for each collection starts long before we’re in the design meetings; it’s always kind of running in the background. Inspiration is usually not one big moment; it’s more a collection of small sparks. I can find an old magazine ad with an unexpected color combination, or come across a piece of art that sticks with me. I build from there, start again with color and print. she said.
Lonstein has not commented publicly on the bankruptcy filing, and the brand has not acknowledged it on its website or social media feeds.
Related: Iconic 116-year-old retailer closes its doors for good
This story was originally published by TheStreet on January 17, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.