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, chief brand officer and spokeswoman for Creditsafe, shared details about the struggles Saks Fifth Avenue has faced that 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 and has made no public comment about a potential Chapter 11 bankruptcy filing.
“Saks Inc.’s Days Beyond Terms (DBT) data for the past twelve months reveal a persistent and concerning pattern of late payments that indicates sustained cash flow difficulty. DBT measures how many days late a company pays its invoices. For the full year, Saks’ DBT stood well above the industry average of 10-12 days, from 10-12 days in November to a low of 2027 days, 2027. 41 in January 2025 and March 2025,” she relayed in an email to TheStreet.
He 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 largely suggested major financial concerns at Saks Global, the company denied 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 arrears, invest in our transformation and improve performance. It is important to note that a restructuring is not 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 significant synergies from our integration, we expect to improve the company’s performance and celebrations. sent at TheStreet.
In addition, the company’s spokesperson took significant issue with the idea that the company would be in danger of filing for Chapter 11 bankruptcy.
Those bankruptcy refusals, not even considered by Saks Global’s board of directors, now ring very hollow.
A number of major news outlets have now reported that Saks Global Enterprises has tabled a Chapter 11 filing.
“Saks Global Enterprises, facing limited options before a more than $100 million debt payment due later this month, is considering Chapter 11 bankruptcy as a last resort, according to people familiar with the situation,” Bloomberg reported.
More retail:
This is not the only option on the table.
“The company is also looking at additional ways to shore up liquidity, including obtaining 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’ creditors have held confidential discussions in recent days to assess the company’s cash needs, according to other people familiar with the matter. Those discussions focused on a potential debtor-in-possession loan, 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 up as the upscale shopping district moved.
1924: The iconic one Saks Fifth Avenue flagship store opened on Manhattan’s Fifth Avenue, establishing its luxury retail presence.
1990: Saks launched its Saks OFF 5TH discount store conceptexpanding into the discount designer segment.
2013: The 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 completed its acquisition Neiman Marcus Group and format Global Scissorsbringing 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 Canadian Saks Fifth Avenue 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 providing exceptional products, advanced experiences and personalized service to our customers,” a Saks representative said via email to Bloomberg.
PJT Partners, which advises the company, declined to comment.
“Saks Global is the world’s largest multi-brand luxury retailer, comprising Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks OFF 5TH, Last Call and Horchow,” according to the company’s website.
Being slow to pay suppliers can cause suppliers to be unwilling to deliver to or extend credit to the company.
“The consistency of these high DBT numbers without sustained improvement suggests that the company may be prioritizing other financial obligations over supplier payments, which may strain supplier relationships and weaken supply chain resilience,” Bhalla wrote.
As a long-time retail watcher, it’s usually obvious when a company is headed for bankruptcy. In its final days before filing, JCPenney, for example, had considerably less stock on its shelves, creating a vicious cycle.
If you have nothing to sell, you can’t raise money to catch up on your debts.
An analysis of Saks’ publicly reported financial statements shows inconsistencies between the company’s statements and actual cash flow performance. For example, Saks faces more than $100 million in interest payments due Dec. 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 could build. Suppliers could eventually cut ties with your business, leaving a gap in your supply chain that cannot be easily filled. This could lead to a reduced product or service line, unhappy customers and lower sales.”
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 favorite source by clicking here.
