Saks Faces Backlash With Brands
Following months of unease, luxury retailer Saks Fifth Avenue is in hot water yet again. It was recently reported that Saks owed many of its brands upwards of hundreds of thousands of dollars. According to a memo sent by Saks Global CEO Marc Metrick, brands that are waiting for payments will have to wait. Overdue bills will be processed over a series of 12 installments beginning in July. Metrick, however, reassured vendors that any new orders would be fulfilled within 90 days of receipt despite the 60 day industry standard. The news broke in the midst of the group's $2.7 billion acquisition of Neiman Marcus late last year. Earlier this week, Saks Fifth Avenue also announced the closure of Neiman Marcus's historic flagship location in Dallas, Texas. According to official reports, the landmark's closure is not tied to the merger, and employees of the location have been offered transfer opportunities within the company. Despite confidence from upper management, the financial struggles are not dissimilar from former legacy New York-based retailer Barneys, which shuttered its doors in 2020 after nearly 100 years in business. So far, no major layoffs have occurred within Neiman Marcus, but a handful of Saks and Neiman Marcus locations are likely to close in the near future.Click here to view full gallery at Hypebeast
Following months of unease, luxury retailer Saks Fifth Avenue is in hot water yet again. It was recently reported that Saks owed many of its brands upwards of hundreds of thousands of dollars.
According to a memo sent by Saks Global CEO Marc Metrick, brands that are waiting for payments will have to wait. Overdue bills will be processed over a series of 12 installments beginning in July. Metrick, however, reassured vendors that any new orders would be fulfilled within 90 days of receipt despite the 60 day industry standard.
The news broke in the midst of the group's $2.7 billion acquisition of Neiman Marcus late last year. Earlier this week, Saks Fifth Avenue also announced the closure of Neiman Marcus's historic flagship location in Dallas, Texas. According to official reports, the landmark's closure is not tied to the merger, and employees of the location have been offered transfer opportunities within the company.
Despite confidence from upper management, the financial struggles are not dissimilar from former legacy New York-based retailer Barneys, which shuttered its doors in 2020 after nearly 100 years in business. So far, no major layoffs have occurred within Neiman Marcus, but a handful of Saks and Neiman Marcus locations are likely to close in the near future.
Click here to view full gallery at Hypebeast
