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The company has been slow to pay some bills. Some vendors are slowing shipments to the brand. The chain has been closing locations and making other moves to preserve cash. A retailer surviving for 158 years requires constant adaptation. Nostalgia only goes so far and the past few years have been brutal for previously enduring retailers. Canada’s Hudson Bay, for example, closed outright after over 350 years while Sears, once America’s most powerful retailer is down to a handful of struggling stores. Avoiding what has been inevitable for nearly every retail brand ever created requires both skill and luck. In the current market, however, raising cash has become challenging and vendors have become wary when brands fall behind in payment. That has put Saks Global, the parent company of Saks Fifth Avenue, Ragini Bhalla, head of brand and spokesperson for Creditsafe, shared some data on the struggles that Saks Fifth Avenue has undergone in a recent email to TheStreet. “Saks Inc.’s Days Beyond Terms (DBT) data over the past twelve months reveals a persistent and troubling pattern of late payments that point to sustained cash flow distress. DBT measures how many days late a company pays its bills. Throughout the entire year, Saks’ DBT has hovered well above the industry average of 10-12 days, ranging from a low of 27 in November 2024 to a high of 41 in January 2025 and March 2025,” she wrote. Now, there are more signs that the chain is having problems as it’s closing nine Saks Off 5th locations. Saks closing more stores Saks Global will begin closing the off-price locations starting in January. The chain currently operates 79 Saks Off Fifth locations. The chain tried to frame the move as a positive. “As part of our ongoing and comprehensive strategy, we have taken a critical eye to our store footprint,” A company spokesperson told RetailDive in an email. That’s not the full story. Bhalla’s data suggests that the company’s problems run deep. “Even as DBT modestly improved in May 2025 and June 2025 (holding at 30 in both months), it remains nearly three times the industry norm and has jumped back up to 39 in August 2025 and September 2025. This level of payment delinquency, especially when sustained over an extended period, is a red flag for underlying liquidity issues and points to potential challenges with managing accounts payable,” she shared. More Retail: Watchdog group warns Costco members on key health threat Chocolate prices are scary high for Halloween this year Children’s retailer closing 150 stores, slashes jobs NCM Consulting President Nancy Mair shared similar thoughts with RetailDive. “Saks Global’s struggles to pay vendors and maintain inventory appear to be impacting its off-price business,” RetailDive reported. “They’re not prioritized in the market,” she told the website . “The best brands are not going to sell to them and have their product on the floor. With lessening traffic, they’re losing volume. Why would they put themselves out there when they want to protect their brands?” Saks Global’s recent closures The Saks Fifth Avenue store at 384 Post Street (Union Square, San Francisco) is scheduled to close on May 10, 2025. Source: San Francisco Standard Saks Global closed two U.S. corporate office sites (New York & Dallas) in February 2025 as part of consolidation. Source: Bloomberg A fulfillment / distribution facility in Wilkes‑Barre, Pennsylvania is being downsized. About 90 employees at that site were impacted as the facility is deemed “redundant” and volume moved elsewhere. Source: Retail Dive In Canada all remaining Saks Fifth Avenue and Saks Off 5TH stores under Hudson’s Bay Company (HBC) licensing were part of liquidation by June 2025. (This includes complete shutdown of the Canadian outlets of the brand. ) Source: Retail Insider Saks Global shares its plan While Bhalla’s data suggests that Saks Global is at risk of filing Chapter 11 bankruptcy, the company shared a statement via email with TheStreet where it denies any financial problems. “We are making strong progress to reduce outstanding payments, invest in our transformation and drive improved performance. It is important to note that a restructuring is not being 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 the significant synergies from our integration, we expect performance to improve through the holiday season and into 2026.” Bhalla, whose company analyzed publicly available financial records, believes the brand is at risk of running out of money. “Saks Global’s financial situation has worsened in recent months, with its Q2 revenue falling more than 13% year over year to $1.6 billion and net losses widening to $288 million. The luxury conglomerate, still digesting its $2.7 billion acquisition of Neiman Marcus and Bergdorf Goodman, continues to grapple with vendor payment backlogs, delayed shipments, and strained supplier relationships that analysts have long warned would disrupt sales,” Bhalla wrote. That could be a major red flag heading into the holiday season. “Several vendors have reportedly stopped shipping to Saks and Neiman Marcus altogether, citing overdue invoices, despite the company’s $600 million bond refinancing deal earlier this year,” she added. A history of Saks Fifth Avenue:
