'Out of stock': What went wrong at luxury retailer Saks?
BBC••general
Key Points:
- Saks Fifth Avenue's parent company, Saks Global, is expected to file for bankruptcy protection soon due to mounting financial difficulties following its 2024 acquisition of Neiman Marcus, which failed to deliver anticipated cost savings and synergies.
- The retailer has been struggling with significant debt, including a missed $100 million interest payment in late December on approximately $2.2 billion of merger-related debt, leading to payment delays to vendors and inventory shortages in stores.
- Vendors have expressed frustration over months-long payment delays and halted shipments, with some severing ties or suspending new orders, further exacerbating Saks' supply chain and inventory challenges.
- Customers have noticed reduced product availability and canceled online orders, diminishing consumer confidence and willingness to shop at Saks, as
