In 1993, Shoshanna Lonstein Gruss, then just Shoshanna Lonstein, became a tabloid darling because she dated Jerry Seinfeld at the height of his sitcom fame.
This was before you were famous on social media, but essentially she was one of the first influences and turned the fame of her four-year relationship into a successful career as a fashion designer.
Lonstein Gruss was a rare person in those days who managed to turn fame by association into a real career. Her Shoshanna clothing brand was respected and sustainable, not an attempt to capitalize on her name recognition, as was the case 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 and is also sold at retailers including Saks Fifth Avenue, Neiman Marcus and Bloomingdale’s. He also has a few items for sale on Amazon.
Now, the retail brand has filed for Chapter 11 bankruptcy, the same day that Saks Global and Neiman Marcus also filed. (It’s important to note that the company behind the Shoshanna brand uses a slightly different spelling—namely, Shoshanah Fashions.)
Lonstein Gruss may have started as a tabloid figure, but he 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 at high-end retailers such as Bergdorf Goodman, Neiman Marcus, Saks Fifth Avenue, Bloomingdale’s, as well as specialty stores Anthro50pologie and Anthropologie. in the United States, Canada, Europe and Asia,” the company said on its website.
Shoshanah Fashions has not made a public statement regarding its Chapter 11 bankruptcy filing. The filing, however, came on the same day 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 Creditsafe Spokesperson.
“Saks Inc. had a persistent and troubling pattern of paying suppliers at the end of 2025, indicating sustained liquidity problems. Days Beyond Terms (DBT) refers to the number of days past due (ie, past due dates) that a company pays its invoices. One of the the most common indication that a company is struggling with cash flow is when the DBT is significantly higher than other companies in the same industry,” the research showed.
Saks’ DBT ranged from 30 to 41 between January and December 2025, which was more than three times the industry DBT average of about 9.
Between June and September 2025, the company’s DBT rose steadily 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 the company was usually paying suppliers more than a month late.
“If a supplier and Saks have agreed to Net 90 payment terms, that means they may not be paid for a single invoice for at least 4 months after fulfilling orders or completing services for Saks. While some larger sellers may have waited that long to get paid, small and mid-sized sellers may not have had that luxury and would have had to make their own financial decisions.”
The timing of payment to suppliers is one of the most critical and fragile parts of the retail business model.
When retailers delay payments to suppliers while continuing to require standard delivery schedules, sellers are forced to fund production themselves. This often means borrowing at high interest rates or extending their own debt, increasing financial risk along the supply chain.
In today’s high-rate environment, these delays are particularly damaging, turning what would have once been manageable short-term gaps into protracted cash flow crises.
Saks’ Chapter 11 bankruptcy had a ripple effect on its suppliers.
“Within days, the exposure profile became inescapable. Any organization that relies on leveraged retail partners, extends trade credit, underwrites retail risk or finances inventory is now on the risk perimeter,” Lawyer Monthly reported.
Shoshanah Fashions, Inc. filed for Chapter 11 bankruptcy protection in US Bankruptcy Court on January 14, 2026.
The case is listed as Case no. 26-10083 (Chapter 11)indicating the voluntary filing of bankruptcy.
The filing is part of a broader trend of bankruptcies in the retail and clothing sectors in 2025-2026, which also includes other retailers (eg Joann and Saks Global).
As in many cases since the beginning of Chapter 11, detailed court documents (eg asset/liability charts, creditor lists, reorganization plan) have not yet been publicly posted or widely reported. Source: PacerMonitor
Saks Global’s bankruptcy will affect its suppliers.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Saks Global’s bankruptcy will affect its suppliers.Shutterstock ·Shutterstock
Because Saks Global plans to continue operations, it must reach an agreement with suppliers regarding unpaid invoices. According to Bhalla, it is likely that the sellers will not receive what they are owed.
“Given that Saks has also defaulted on debt payments and filed for bankruptcy, it increases the likelihood that some vendors will never be paid for work completed or orders fulfilled. These data suggest that Saks has struggled with cash flow and liquidity for some time, contributing to the deterioration of its relations with suppliers. Finally, the failure of Saks addressing these challenges likely played a role in his 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 fund operations while the company is in Chapter 11, while another $5 million will be available from the bank after it emerges from the bank.” reported website.
Even if the sellers receive partial payments, that process can take months as the bankruptcy moves through the courts.
More bankruptcy:
Saks made a plan last year to pay off the outstanding balances.
“On Feb. 14, newly formed Saks Global announced its plan to pay vendors outstanding balances in 12 monthly installments starting in July,” JD Supra reported.
The bankruptcy process is not bound by any previous agreement.
Founded in 1998 by the designer Shoshanna Lonstein Gruss in New York City.
Signature Style: Known for flattering silhouettes, bold colors and distinctive details; emphasizes femininity and fit.
Retail presence: Carried at high-end retailers such as Saks Fifth Avenue, Bloomingdale’s, Neiman Marcusand specialty boutiques in North America and internationally.
Innovation in swimwear: Early adopter of swimwear inspired size separatessetting a trend for a more tailored fit in swim fashion.
Brand Growth: Expanded from dresses and evening wear to include resort wear, swimwear and seasonal collectionsbuilding 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 I’m in design meetings; it’s always kind of running in the background. Inspiration usually isn’t a big moment; it’s more a collection of little sparks. I might find an old magazine ad with an unexpected color combination, or come across a piece of art that sticks with me,” she said.
Lonstein has not publicly commented on the bankruptcy filing, and the brand has not acknowledged it on its website or social media.
Related: Iconic 116-year-old retailer is closing 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 favorite source by clicking here.
