Saks Says Plan to Pay Past-Due Bills Improved Vendor Relationships

Saks Global Enterprises reportedly told creditors that it has improved its relationships with vendors and built up its inventory since implementing a plan in February to pay past-due balances over the course of a year.

The luxury retailer has returned its inventory to levels set in 2023 and currently has about $400 million in liquidity, Bloomberg reported Monday (April 28).

Saks held a call with creditors after saying last week that it was considering taking on more debt, a move that it told Bloomberg it took because of the current economic uncertainty caused by tariffs and potential trade restrictions, according to the report.

The retailer said it sees an opportunity for future growth with the support of Amazon, Authentic Brands and Salesforce, which backed its takeover of Neiman Marcus Group in December, per the report.

It was reported in August, in the midst of its merger with Neiman Marcus, that Saks owed vendors hundreds of thousands of dollars each.

In February, it was reported that Saks issued a memo to its suppliers in order to reassure them about the unpaid bills. The retailer said it would pay for new orders within 80 days of receipt and would cover past-due payments in 12 installments beginning in July.

“I understand and am sympathetic to the last 18 months and the challenges regarding payments,” Saks Global CEO Marc Metrick wrote in the memo. “Our expectation is that this provides the clarity you have been seeking. To that end, we are looking forward to seeing the flow of merchandise return to normal levels.”

Saks completed its $2.7 billion acquisition of Neiman Marcus on Dec. 23, saying the combination will “drive innovation and growth.” The company said the combined company’s strategic technology partnerships will help it enhance its shopping experience and merchandising.

Amazon and Salesforce took minority stakes in the company in July, with Metrick saying at the time that Saks can future proof its brands through the use of technology.

The creation of Saks Global highlighted a trend in the luxury goods market in which players are forming strategic partnerships to fortify their positions, PYMNTS reported in October.