Inside Saks' Fight for Its Life: Bankruptcy Looms After a Year of Crisis
Business Insider••business
Key Points:
- Saks Fifth Avenue is facing severe financial distress after a turbulent year marked by restructurings, lawsuits, and missed payments, with bankruptcy a looming possibility.
- Vendors, some unpaid for over a year, have halted shipments due to uncertainty, threatening Saks' inventory and the upcoming spring season.
- The $2.7 billion acquisition of Neiman Marcus in late 2024, financed largely by high-interest junk bonds, exacerbated cash flow problems and led to multiple rounds of layoffs.
- Saks has delayed vendor payments with installment plans that have not been met, causing strained relationships and legal action from some suppliers.
- Despite its iconic status and valuable real estate, Saks faces a challenging road ahead amid a weak luxury market and potential recession
