Sometimes a classic tells a story and, in this case, Shakespeare’s Hamlet applies.
Earlier this month, TheStreet published an analysis of Saks Global’s financial position. It doesn’t paint a good picture.
Ragini Bhalla, head of brand and spokeswoman for CreditSafe, shared data on the struggles Saks Fifth Avenue is facing, which could push the company into a Chapter 11 bankruptcy filing.
It is important to note that Bhalla used publicly available financial information to analyze the company. Saks itself has not issued any concern warnings or made any public comments on the potential Chapter 11 bankruptcy filing.
“Saks Inc.’s Days Beyond Terms (DBT) data for the trailing twelve months reveal a persistent and troubling pattern of late payments that point to an ongoing cash flow crisis. DBT measures how many days late a company pays its bills. Throughout the year, Saks’ DBT has averaged a 1-day average of 12-0. November 2024 saw a high of 27 in January 2025 and a high of 41 in March 2025,” he said. shared in an email to TheStreet.
He then explained the information in very clear terms.
“This indicates that Saks has taken about a month or more to pay its suppliers late,” she wrote.
Despite the clarity of the information, which at least suggested major financial concerns at Sachs Global, the company denied that anything was wrong.
Saks Global is considering filing for bankruptcy.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Saks Global is considering filing for bankruptcy.Shutterstock
“We are making strong progress in reducing outstanding payments, investing in our transformation and driving improved performance. It is important to note that restructuring is not contemplated. We have sufficient liquidity after raising $600 million in financing from existing bondholders this summer. At the same time, we expect significant improvement in our performance as inventory levels normalize and through the holiday season of 2026,” the company shared in a statement sent to TheStreet.
Additionally, a company spokesperson took significant issue with the idea that the company is in any danger of filing Chapter 11 bankruptcy.
Those denials of bankruptcy, not even considered by the Sachs Global Board, are now ringing very hollow.
Several major news outlets have now reported that Sachs Global Enterprises has put a Chapter 11 filing on the table.
“Sachs Global Enterprises, facing limited options ahead of more than $100 million in debt payments due later this month, is considering Chapter 11 bankruptcy as a last resort, according to people with knowledge of the situation,” Bloomberg reported.
More retail:
That’s not the only option on the table.
“The company is also weighing additional ways to raise liquidity, including emergency financing or selling assets, said the people, who asked not to be identified because they were not authorized to speak publicly,” the news outlet reported.
In addition, some Sachs lenders have held confidential talks in recent days to assess the company’s cash needs, according to other people familiar with the matter. Those discussions have focused on potential debtor-in-possession loans, a form of bankruptcy funding.
1867: The first Saks store opened in Washington, DC, marking the beginning of what would become Saks Fifth Avenue. This is confirmed by the company’s own history page.
1902: Saks expanded into New York City with a store in Herald Square before moving uptown as the luxury shopping district moved.
1924: Distinguished Saks Fifth Avenue flagship store opened on Fifth Avenue in Manhattan, establishing its luxury retail presence.
1990: Saks started it Saks OFF 5th off-price store conceptExpanding on the Discount Designer section.
2013: Canadian retail giant Hudson’s Bay Company (HBC) acquired Saks, Inc.That included Saks Fifth Avenue and Saks OFF 5TH, in a deal worth about $2.9 billion. Source: Saks Global
2024: HBC completed its acquisition Neiman Marcus Group and formed Scissors GlobalBringing Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman under one luxury retail umbrella, a press release added.
2025: Saks Fifth Avenue’s operations in Canada ended when Hudson’s Bay Company liquidated nearly all of its Canadian stores, including Canadian Saks Fifth Avenue locations, Retail Insider reported.
“Together with our key financial stakeholders, we are exploring all possible avenues to secure a strong and stable future for Saks Global and advance our transformation by providing exceptional products, advanced experiences and personalized service to our customers,” a Saks representative told Bloomberg via email.
PJT Partners, which advises the company, declined to comment.
“Saks Global is the world’s largest multi-brand luxury retailer, including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, Saks of 5th, Last Call and Horcho,” according to the company’s website.
Suppliers may not be willing to ship or offer credit to the company because vendors are late in paying.
“The persistence of these elevated DBT figures without sustained improvement suggests that the company may be prioritizing other financial obligations over supplier payments, which could strain vendor relationships and weaken its supply chain flexibility,” Bhalla wrote.
As a long-time retail observer, it’s usually obvious when a company is nearing bankruptcy. In its final days before filing, JCPenney, for example, had significantly less inventory on its shelves, creating a vicious cycle.
If you don’t have anything to sell, you can’t raise the cash to catch up with your debt.
A review of Saks’ publicly reported financials reveals inconsistencies between the company’s statements and its actual cash flow performance. Saks, for example, faces more than $100 million in interest payments as of Dec. 30,” according to data compiled by Bloomberg.
American Express shared a simple explanation of what happens when a company doesn’t pay its vendors on time.
“If you consistently pay suppliers late, frustrations can mount. Suppliers may eventually cut ties with your business, leaving gaps in your supply chain that can’t be easily fixed. This can lead to reduced product or service lines, disgruntled customers, and lower sales. Worst of all, late payments require a reputation for difficulty finding new business. They need it,” shared American Express.
RELATED: Sneaker Retailer Files Chapter 11, Closes Most of Its Stores
This story was originally published by TheStreet on December 30, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
