Saks Global ended 2025 in a bind. Now, 2026 is shaping up to be its make-or-break year.
The struggling US retail company kicked off the year with a CEO switch-up. On January 2, Marc Metrick, who had been at the company for 30 years, stepped down, to be replaced by executive chairman Richard Baker (who now holds both roles). The news came amid reports that Saks Global is preparing to file for Chapter 11 bankruptcy after the company missed its latest debt payment of $100 million on 30 December. Saks declined to comment.
“Saks is not working financially. It has far too much debt and the business is not generating sufficient cash to make repayments and run the day-to-day operations,” says Neil Saunders, managing director of Globaldata’s US retail division. “Resolving this calls for major restructuring.”
The fate of Saks Global will determine the future of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman — a significant segment of the US wholesale landscape, whose survival (or failure) will directly impact the businesses of myriad independent brands that rely on their retail channels and weight to reach customers. All combined, the group can account for 50% or more of designers’ sales.
Saks Global, equally, needs brands to survive. As the company has failed to pay brands on time, it has damaged relationships and ultimately forced its main factor, Hilldun Group, to withhold shipments. This has jeopardized the group’s inventory assortment — making it a less desirable place for customers to shop.
At the time of publishing, Hilldun has not resumed shipments, CEO Gary Wassner confirmed — despite him having hoped to restart approvals back in December. “There has been no communication between us,” he says. “I do not know what their next move will be. Everything is up in the air.” With spring collections due to start shipping in January (and go through March), Saks needs to move fast, he adds. “The clock is ticking.” One designer says he’s shipped part of his spring collection orders to the three retailers, but is holding off on the rest until Hilldun resumes factoring.
Even if brands do continue to ship inventory to Saks, the retailer has work to do to get customers back in stores and spending. Saks’s second-quarter revenues fell 13% year-on-year to $1.6 billion, missing expectations, in October last year. One designer who recently visited a Saks store lamented that it was “missing that sparkle”. “They need to get new inventory into the stores — variety is key,” says Brad Sandler, partner at Pachulski Stang Ziehl Jones LLP. Beyond inventory, he says, Saks needs to refresh stores; improve its omnichannel experience; and up personalization efforts. “They need to develop a model that makes the luxury consumer feel special,” he says.
The stakes are high for both Saks Global and the brands it sells. Many rely on the retailer group to prop up their businesses, but are now questioning whether or not they should keep selling to a company that continues to delay and withhold payments for their products. For Saks to push forth, it needs these brands. Is there a clear path forward?
The brand impact
If Saks does file for Chapter 11, this will likely mean even further reduced or delayed payments to brands who are already waiting on their money, analysts expect — exacerbating existing issues. Sandler expects little to no payment of outstanding balances, given senior secure lenders would have to be paid first. “Vendor claims are often subject to the bankruptcy hierarchy and negotiation in a reorganization plan,” Quillin says. This could place independent brands at a disadvantage. “A lot depends on the agreements brands have with Saks and their status in the industry,” Saunders says. “The bigger brands may find some security as Saks needs them to survive.”
Independent brands are often shafted in bankruptcy filings and retailer woes. It was indie brands that were burned the hardest when Matches collapsed back in 2024. Now that it’s being revived under new ownership, one of new luxury group Hulcan’s biggest challenges will be to repair brand relationships. And Ssense, which filed for bankruptcy in August 2025, owes a laundry list of independent brands payments in the millions.
Though Saks needs the big names, the retailer can’t survive on luxury houses alone. These brands aren’t reliant on Saks and can pull back on a whim. They can also be found elsewhere — unlike many of the independent brands that draw consumers in for their more unique offerings. It’s these brands, too often left in a lurch, who rely on Saks retailers to keep their businesses afloat. “We plan our whole year on [Saks Global retailer orders], so it creates a really big cash flow issue — especially when you have things like fashion shows you’re supposed to do, and factories you’re supposed to pay,” one designer who was waiting on a third late payment of 2025 told Vogue Business in December. “It gets really hard,” he said.
Founders acknowledge that things are especially tricky now that Saks, Neiman and Bergdorf are all under one umbrella. Some designers say their sales were stronger at Neiman before the acquisition. They also point out worries that their business decisions regarding one retailer now risk impacting their standing at another, given all three retailers are now under combined leadership. This leaves founders less flexible to take action in response to delayed payments.
Some brands could receive partial relief if they can assert timely claims or restructure supply terms under court oversight, Quillin says. But this is a big burden placed on brands already squeezed for both time and cash. Multiple brands say that they are debating whether or not to continue to take orders from Saks retailers, due to the financial risk it now involves.
That said, a bankruptcy filing is still a better outcome for brands than liquidation, Quillin says. It would at least keep the sales channels open, mitigating a total loss — so long as Saks pays the brands for said sales. But ultimately, there isn’t a clear positive outcome for brands, analysts agree. “This is bad news for brands whichever way it goes,” Quillin says.
Not all analysts are convinced that bankruptcy is the single inevitable outcome. Other options include securing a large pre-packaged refinancing or debtor-in-possession loan (Bloomberg reported Sunday that Saks is in talks to secure a potential $1 billion loan); selling assets (like real estate or brand stakes; the notion of selling a stake in Bergdorf Goodman was floated in September 2025); or executing negotiated restructurings with creditors to extend liquidity (the company did already take this route last year; in June, Saks announced $350 million in new financing commitments from SLR Credit Solutions).
Quillin doesn’t view a potential Chapter 11 filing as hugely disruptive to the broader US retail environment, though, despite the disruption it would cause to suppliers and vendors. “The US retail environment has proven resilient through a range of bigger shocks over the course of the past year. I do not see a Saks Chapter 11 filing driving a massive change in broader consumer confidence or demand,” he says, adding that it may well speak instead to the diminished role of department stores in the US retail landscape.
If inventory is what Saks needs to regain already-lost customers, the retailer must prioritize recouping its brand relationships. For this, communication is key, Sandler says. “This is going to require Saks speaking with its vendors and being transparent; explaining that they are working to pay the brands, and that their transformation makes sense, and why.” To date, communication has been lacking, leaving designers in the dark regarding if and when they will be paid. Some have had to consistently chase Saks to receive payment. “Saks should not talk ‘at’ their vendors, but rather regularly and consistently talk ‘to’ their vendors – make them understand that Saks views them as partners in the go-forward business,” Sandler adds.
“I think most brands would like Saks to remain a part of retail, but they want to see it operate as a retailer and behave decently towards them,” Saunders says. “The best option for brands would probably be for Saks to avoid Chapter 11 and for it to find a way to refinance. However, the truth is that Saks is in deep water and I don’t think the outlook for brands is very optimistic.”
Still, Saks is a pillar of US retail that Wassner believes is a necessary fixture. “I’ve said all along that the industry needs this company. Barney’s was only two locations; nobody wanted to see it go away. But it did and we survived,” he says. “Saks is another story. It’s critical to the fashion infrastructure in this country.”
Saks Global CEO Marc Metrick Steps Down
