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Low inventory due to unpaid invoices and troubled communications with vendors was a major contributor to Saks Global\u2019s disastrous 2025\u00a0and eventual bankruptcy\u00a0in the early days of 2026.<\/p>\n
The company seems to appreciate this. In its Chapter 11 filing last week, Saks Global Chief Restructuring Officer Mark Weinsten told the court that its \u201cability to generate income is dependent on the … sale and offering of a carefully curated assortment of third-party and private label merchandise and unique shopping experience.\u201d<\/span><\/p>\n\u201cThis curated model depends on longstanding partnerships with wholesale merchandise vendors, many of whom are irreplaceable, category-defining brands whose products cannot be substituted without irreparably altering [Saks Global retailers\u2019] value proposition and customer experience,\u201d <\/span><\/span>Weinsten said.<\/p>\nRepairing those relationships and getting goods flowing again will be key to the luxury retailer\u2019s turnaround. On the heels of the filing, newly appointed Saks Global CEO Geoffroy van Raemdonck last week touched base with suppliers, touting the benefits of the bankruptcy process and the strengths of his new team.<\/p>\n
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\u201cThis curated model depends on longstanding partnerships with wholesale merchandise vendors, many of whom are irreplaceable, category-defining brands.”<\/p>\n
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Mark Weinsten<\/p>\n
Saks Global Chief Restructuring Officer<\/p>\n<\/div>\n<\/div>\n\n<\/div>\n
In a memo seen by Retail Dive but not verified by the company, van Raemdonck said that current invoices would be paid and past-due invoices would be a priority, but warned the system is bound by bankruptcy rules. Recipients of the memo included smaller vendors, but it\u2019s not clear how many received it. Saks Global didn\u2019t respond to requests for comment.<\/p>\n
Despite those constraints, the new leadership and even the bankruptcy itself will be instrumental in setting things right, experts say. But it will take time, and expectations need to be realistic.<\/p>\n
Owners of brands who previously told Retail Dive that Saks owed them tens of thousands of dollars or had received only partial payments \u2014 including some who had stopped shipping their goods \u2014 this week expressed tentative optimism. But these smaller brands could be disappointed by what is a long and drawn out process that favors big-name companies.<\/p>\n
\u201cI understand why vendors are cautiously hopeful, but payment on past-due invoices is still ultimately determined through the Chapter 11 process,\u201d said Christina Langbort, director of business development in the U.S. and Europe at financial services company Hilldun. \u201c<\/span><\/span>New leadership helps from a confidence and tone standpoint, but it doesn\u2019t automatically change how pre-petition claims are treated.\u201d<\/p>\nThat includes not just van Raemdonck but also executives like Darcy Penick, newly appointed as president and chief commercial officer, and Lana Todorovich, appointed chief of global brand partnerships, according to Langbort. Both previously worked with van Raemdonck when he led Neiman Marcus Group.<\/p>\n
As van Raemdonck also noted, payment for goods shipped after the filing is now prioritized, and, going forward, invoices will be paid in the ordinary course of business. Some invoices received by Saks Global just ahead of the filing, within 20 days or so, may be treated similarly, Langbort said by email.<\/p>\n
\u201cMore broadly, past-due balances tend to be addressed over time rather than immediately,\u201d she said.<\/span><\/p>\nIn court filings, Saks Global detailed the 30 companies owed the most money \u2014 at least tens of millions of dollars \u2014 including major luxury firms like Kering, Capri, LVMH and Richemont and upscale brands like Ermenegildo Zegna, Akris, Christian Louboutin and Brunello Cucinelli. Chanel tops the list, owed $136 million. Observers have been surprised to see some of those brands on the list because theoretically they run their own concessions and shouldn\u2019t have to wait to be paid by Saks Global. Tech companies Meta and Google are also in that group.<\/p>\n
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Late payments to vendors were a major cause of Saks Global’s struggles all last year<\/h4>\n
Companies owed at least $20 million at the time of the luxury retailer’s bankruptcy filing.<\/p>\n
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