Luxury retailer Saks Fifth Avenue is once again facing criticism, this time for overdue payments to many of its brand partners. Reports have revealed that Saks owes significant amounts of money—ranging in the hundreds of thousands of dollars—to several of its vendors.
A recent memo from Saks Global CEO Marc Metrick announced that these unpaid bills would be settled in installments over a 12-month period starting in July. Despite this, Metrick assured vendors that new orders would still be fulfilled within 90 days of receipt, a slightly longer timeframe than the industry-standard 60 days.
This news comes amid Saks’ $2.7 billion acquisition of Neiman Marcus, which was finalized late last year. In a related move, Saks also revealed the closure of Neiman Marcus’s flagship Dallas location, a historic site for the brand. However, the company emphasized that the closure is not connected to the merger and has offered employees at the Dallas store the opportunity to transfer to other locations.
Despite the challenges, including the financial struggles that have drawn comparisons to the fate of former retail giant Barneys New York, which closed its doors in 2020 after nearly a century of business, Saks and Neiman Marcus have yet to announce any major layoffs. However, it’s expected that a few Saks and Neiman Marcus locations may be shuttered in the near future.
As Saks navigates this rocky period, the coming months will be crucial in determining the company’s ability to maintain its luxury status while satisfying both vendors and customers.
