Back in 1993, Shoshanna Lonstein Grouse, then just Shoshanna Lonstein, became a tabloid darling because she dated Jerry Seinfeld at the height of his sitcom fame.
That was before you could become social media famous, but essentially, she was one of the first influencers, and she parlayed the fame of her four-year relationship into a successful career as a fashion designer.
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Lonstein Gruss was a rare person, in those days, who managed to turn fame by association into a real career. As with Monica Lewinsky’s handbag line, her Shoshanna clothing brand was respected and enduring, not an attempt to capitalize on her name recognition, as was the case with Mike “The Situation” Sorrentino’s “Situation Nation” clothing line.
Shoshanna operates her own store, while also selling at retailers including Saks Fifth Avenue, Neiman Marcus, and Bloomingdale’s. It also has some items for sale on Amazon.
Now the retail brand has filed for Chapter 11 bankruptcy, the same day 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, Shoshanna Fashions.)
Lonstein Gruss may have started as a tabloid personality, 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 luxury retailers such as Bergdorf Goodman, Neiman Marcus, Saks Avenue, Blomdvue, Blomduff, Neiman Markle. In addition to Anthropologie in the United States, There are over 500 specialty stores in Canada, Europe and Asia,” the company shared on its website.
Shoshanah Fashions has not made a public statement about its Chapter 11 bankruptcy filing. The filing, however, came on the same day that Saks Global filed for Chapter 11 bankruptcy.
Saks Global’s Saks Fifth Avenue and Neiman Marcus are major distribution partners for Shoshanna Fashion, and the brand partner almost certainly paid, according to data shared with TheStreet by Ragini Bhalla, head of brand and spokeswoman for CreditSafe.
“Sax Inc. had a persistent and problematic pattern of paying vendors late in 2025, Pointing to a sustainable liquidity problem. Days Beyond Terms (DBT) refers to Days late (ie, past payment terms) that a company pays its bills. one of the The most common sign that a company is struggling with cash flow is when it has DBT significantly higher than other companies in the same industry,” the research showed.
Saks’ DBT ranged between 30 and 41 between January and December 2025, nearly three times the industry average DBT of 9.
Between June and September 2025, the company’s DBT consistently increased 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 that the company usually pays vendors a month late.
“If a vendor and Saks agree to Net 90 payment terms, it means they may not be paid for a single invoice for at least 4 months after completing an order or performing services for Saks. While some large vendors may have to wait longer to get paid, small and medium-sized vendors may not have that luxury and can make their own financial decisions.
Vendor payment time is one of the most important, and weakest parts of the retail business model.
When retailers continue to demand standard delivery schedules that delay payments to suppliers, vendors are forced to finance production themselves. This often means borrowing at higher interest rates or paying them off on their own, increasing financial risk in the supply chain.
In today’s high-rate environment, those delays are especially damaging, as a once-manageable short-term gap can turn into a long-term cash flow crisis.
Saks’ Chapter 11 bankruptcy had a ripple effect on its suppliers.
“Within days, the exposure profile became unavoidable. Any institution that relies on leveraged retail partners, extends trade credit, underwrites retail risk, or financial inventory now sits within the risk perimeter,” Lawyers Monthly reported.
Shoshanah Fashions, Inc. filed for Chapter 11 bankruptcy protection In US Bankruptcy Court January 14, 2026.
is listed as an issue Case No. 26-10083 (Chapter 11)Indicating a voluntary bankruptcy filing.
The filing is part of a broader trend Retail and apparel sector bankruptcies 2025-2026 includes other retailers (eg, Joan’s and Saks Global).
Like many early Chapter 11 cases, Detailed court documents (eg, schedule of assets/liabilities, creditor lists, reorganization plan) Not yet publicly posted or widely reported. Source: PacerMonitor
The bankruptcy of Saks Global will affect its vendors.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Saks Global’s bankruptcy will affect its vendors.Shutterstock ·Shutterstock
Because Saks Global wants to continue operating, it must settle with vendors about unpaid bills. According to Bhalla, there is a possibility that the sellers will not receive their loan.
“Sax has also missed loan payments and filed for bankruptcy, raising the possibility that some vendors may never be paid if work is completed or orders are fulfilled. These figures show that Sachs has been struggling with cash flow and liquidity for some time, Contribute to its damaged relationship with suppliers. Ultimately, Saks failed Addressing these challenges likely played a role in its bankruptcy filing,” he wrote.
Sachs struggled to raise funds for its Chapter 11 filing, according to CNBC.
“Prior to the filing, Saks secured $1.75 billion in new financing from the company’s senior secured bondholders and a group of asset-based lenders. The lion’s share, $1 billion, is debt-in-possession financing that will be used to fund operations while the company is in Chapter 11, while an additional $50 million will be available from banks. The website reported.
If the sellers receive partial payments, that process could take months as it works its way through the bankruptcy court.
More bankruptcies:
Sack planned to pay off the balance of last year.
“On February 14, the newly formed Saks Global announced its plan to pay the remaining balance to vendors in 12 monthly installments beginning in July,” JD Supra reported.
The bankruptcy process is not bound by any previous agreements.
Established in 1998 by the designer Shoshanna Lonstein Grouse in New York City.
Signature Style: Known for Flattering silhouettes, bold colors, and distinctive details; Emphasizes femininity and fit.
Retail Presence: As carried over to high-end retailers Saks Fifth Avenue, Bloomingdale’s, Neiman Marcusand specialty boutiques in North America and internationally.
Swimming innovations: Early adopters of Lingerie-inspired sizing in swim separatesSetting the trend for a more personalized fit in swim fashion.
Brand Enhancement: Expanded to include dresses and evening wear Resort wear, swimwear, and seasonal collectionsBuild a strong loyal customer base. Source: Shoshanna.com
Lonstein Gruss shared some of his fashion process with Fashion Weekly in July.
“The creative process for every collection starts long before we’re in design meetings; it’s always going on in the background. Inspiration isn’t usually one big moment; it’s a collection of little sparks. I might find an old magazine ad with an unexpected color combo, or come across a piece of art that sticks with me. I just start printing and printing things from there. Again I know what I love,” she said.
Lonstein has not commented publicly on the bankruptcy filing, and the brand has not acknowledged it on its website or social media feeds.
Related: Iconic 116-year-old retailer closes its doors forever
This story was originally published by TheStreet on January 17, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
