By bizn_fun 
In October, Saks slashed its full-year financial outlook, citing falling sales in part because of inventory challenges.
Tensions with vendors have escalated since the 2024 merger with Neiman Marcus, which had been billed as a move to resolve the retailer’s cash flow problems.
Last February, Metrick, the company’s former chief executive, sent a letter to vendors saying overdue payments would be made in 12 instalments.
It did little to put brands at ease.
Some vendors have kept doing business with Saks for fear of fracturing a business relationship with a leading player in the luxury space.
Others have recently severed their ties with the company.
Finance firm Hilldun, which guarantees orders for about 130 brands that work with Saks, said in November it would stop approving new Saks orders. The announcement marked a notable shift for a company that had just months earlier reiterated its confidence in the department store.
“We had no choice,” said Gary Wassner, Hilldun’s chief executive. All orders remain on hold.
One vendor, who spoke to the BBC and requested anonymity for fear of a backlash from Saks, said he was still owed at least $20,000 in late payments for shipments that went out to customers last year. (His company ships items directly to customers, who place orders through the Saks catalogue – a process called dropshipping.)
On top of those late payments, the vendor said his firm has more than $35,000 worth of unfilled orders that have been held up since October, when Saks instructed him to halt all shipments.
“Even though we had two or three issues like this in the past, this time, the answer of, ‘Let’s cancel the orders’, seems to be a desperate move,” he said.
“Nothing they do makes any sense.”