Saks Global ended 2025 in a bind. Now, 2026 is shaping up to be its make-or-break year.
The struggling US retail company kicked off the year with a CEO switch-up. On January 2, Marc Metrick, who had been at the company for 30 years, stepped down, to be replaced by executive chairman Richard Baker (who now holds both roles). The news came amid reports that Saks Global is preparing to file for Chapter 11 bankruptcy after the company missed its latest debt payment of $100 million on 30 December. Saks declined to comment.
“Saks is not working financially. It has far too much debt and the business is not generating sufficient cash to make repayments and run the day-to-day operations,” says Neil Saunders, managing director of Globaldata’s US retail division. “Resolving this calls for major restructuring.”
The fate of Saks Global will determine the future of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman — a significant segment of the US wholesale landscape, whose survival (or failure) will directly impact the businesses of myriad independent brands that rely on their retail channels and weight to reach customers. All combined, the group can account for 50% or more of designers’ sales.
Saks Global, equally, needs brands to survive. As the company has failed to pay brands on time, it has damaged relationships and ultimately forced its main factor, Hilldun Group, to withhold shipments. This has jeopardized the group’s inventory assortment — making it a less desirable place for customers to shop.
At the time of publishing, Hilldun has not resumed shipments, CEO Gary Wassner confirmed — despite him having hoped to restart approvals back in December. “There has been no communication between us,” he says. “I do not know what their next move will be. Everything is up in the air.” With spring collections due to start shipping in January (and go through March), Saks needs to move fast, he adds. “The clock is ticking.” One designer says he’s shipped part of his spring collection orders to the three retailers, but is holding off on the rest until Hilldun resumes factoring.
Even if brands do continue to ship inventory to Saks, the retailer has work to do to get customers back in stores and spending. Saks’s second-quarter revenues fell 13% year-on-year to $1.6 billion, missing expectations, in October last year. One designer who recently visited a Saks store lamented that it was “missing that sparkle”. “They need to get new inventory into the stores — variety is key,” says Brad Sandler, partner at Pachulski Stang Ziehl & Jones LLP. Beyond inventory, he says, Saks needs to refresh stores; improve its omnichannel experience; and up personalization efforts. “They need to develop a model that makes the luxury consumer feel special,” he says.
The stakes are high for both Saks Global and the brands it sells. Many rely on the retailer group to prop up their businesses, but are now questioning whether or not they should keep selling to a company that continues to delay and withhold payments for their products. For Saks to push forth, it needs these brands. Is there a clear path forward?
The brand impact
If Saks does file for Chapter 11, this will likely mean even further reduced or delayed payments to brands who are already waiting on their money, analysts expect — exacerbating existing issues. Sandler expects little to no payment of outstanding balances, given senior secure lenders would have to be paid first. “Vendor claims are often subject to the bankruptcy hierarchy and negotiation in a reorganization plan,” Quillin says. This could place independent brands at a disadvantage. “A lot depends on the agreements brands have with Saks and their status in the industry,” Saunders says. “The bigger brands may find some security as Saks needs them to survive.”
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