One of the United States oldest retailers has struggled to pay its bills.
The chain has been slow to pay vendors, which puts its holiday inventory at risk.
The company has not commented on a potential Chapter 11 bankruptcy filing.
When a person lives to age 100, they get a shout-out from Al Roker on the “Today” show. That’s a tradition the weatherman and media personality took over from the legendary Willard Scott, and it’s a segment that highlights just how impressive it is for anyone to live that long.
For a business, however, making it to 100 is nearly impossible. The list of brands that reach that age is very small, and surviving for a century or more generally means having to reinvent the company multiple times.
Many brands that once dominated have either gone out of business or barely exist. Sears, for example, was arguably more dominant than Amazon or Walmart, and now the chain consists of just a handful of stores.
In fact, the list of one-time mall anchors that have gone out of business is arguably longer than the list of ones that have made it to see 100.
Mervyn’s: Mid-tier department store chain; liquidated in 2008.
Montgomery Ward: Classic department store; went out of business in 2001.
Gimbels: Historic department store chain; acquired by BATUS and closed in 1987.
Marshall Field’s: Chicago-based department store that rebranded to Macy’s in 2006.
Bonwit Teller: Luxury department store chain that went out of business in 1990.
Burdines: Florida department store chain that was merged into Macy’s by 2005.
Ames: Discount department store that was liquidated in 2002.
Hecht’s: Mid-Atlantic department store; converted to Macy’s by 2006.
Bradlees: Discount department store that closed in the early 2000s.
Caldor: Discount retailer in the Northeast that closed in 1999.
Pizitz/Parisian: Regional department stores that were eventually sold or converted to Macy’s or Belk stores.
Hahne & Co.: New Jersey department store that closed in late 1980s.
Rich’s: Atlanta-based department store; absorbed into Macy’s in 2005.
Now, another legendary retail brand that traces its history back to 1902 has been struggling financially.
Ragini Bhalla, head of brand and spok=esperson for Creditsafe, shared some data on the struggles that Saks Fifth Avenue has undergone, which could push the company into a Chapter 11 bankruptcy filing.
Saks Fifth Avenue has faced some financial struggles. Shutterstock
It’s important to note that Bhalla used publicly-available financial information to analyze the company. Saks itself has not issued a going concern warning or made any public comment on a potential Chapter 11 bankruptcy filing.
“Saks Inc.’s Days Beyond Terms (DBT) data over the past twelve months reveals a persistent and troubling pattern of late payments that point to sustained cash flow distress. DBT measures how many days late a company pays its bills. Throughout the entire year, Saks’ DBT has hovered well above the industry average of 10-12 days, ranging from a low of 27 in November 2024 to a high of 41 in January 2025 and March 2025,” she shared in an email to TheStreet.
The numbers have varied, but the company has been consistently late in paying its bills.
This indicates that Saks has consistently taken nearly a month or more to pay its suppliers late.
Saks’ payment practices have put it well behind industry norms.
“Even as DBT modestly improved in May 2025 and June 2025 (holding at 30 in both months), it remains nearly three times the industry norm and has jumped back up to 39 in August 2025 and September 2025. This level of payment delinquency, especially when sustained over an extended period, is a red flag for underlying liquidity issues and points to potential challenges with managing accounts payable,” she shared.
More Bankruptcy:
Being slow to pay vendors can lead to suppliers not being willing to ship to the company or offer it credit.
“The consistency of these elevated DBT figures without sustained improvements suggests that the company may be prioritizing other financial obligations over supplier payments, which can strain vendor relationships and weaken its supply chain resilience,” Bhalla wrote.
Saks Fifth Avenue has also seen customers desert the brand.
“Saks Global’s financial situation has worsened in recent months, with its Q2 revenue falling more than 13% year over year to $1.6 billion and net losses widening to $288 million. The luxury conglomerate, still digesting its $2.7 billion acquisition of Neiman Marcus and Bergdorf Goodman, continues to grapple with vendor payment backlogs, delayed shipments, and strained supplier relationships that analysts have long warned would disrupt sales,” Bhalla wrote.
That could be a major red flag heading into the holiday season.
“Several vendors have reportedly stopped shipping to Saks and Neiman Marcus altogether, citing overdue invoices, despite the company’s $600 million bond refinancing deal earlier this year,” she added.
Related: Popular wedding brands file Chapter 11 bankruptcy
Bhalla made it clear that the company’s problem is cash flow and having money to pay its bills.
“While CEO Marc Metrick attributed the revenue slump to ‘inventory challenges’ stemming from system integration issues, the underlying problem remains liquidity: without consistent inventory flow, Saks risks losing share to competitors ahead of the holiday season. Analysts say the retailer’s reliance on vendor-run concession and marketplace models is currently what’s ‘keeping the business afloat,’ underscoring how fragile its balance sheet and supplier trust have become as Saks enters the most critical quarter of the year,” she shared.
While Saks Global isn’t public, it has shared some information on its financial struggles.
The company acknowledged that it lost about $100 in the past fiscal year.
“The luxury retailer has $275 million in overdue payments to suppliers, management told bondholders in a Friday call where it also shared figures from the 12-month period ended Feb. 1, according to people with knowledge of the call’s contents,” Bloomberg reported.
GlobalData Managing Director Neil Saunders was not impressed with the company’s results in July, when it shared sales data.
“The sales results are very soft, and although this includes some store closures, it underlines the fact that the business is being buffeted by the weakness in the luxury market as well as being affected by stumbles in inventory,” he told RetailDive.
Saunders made it clear that the company is playing a dangerous game.
“The business needs to get supplier relations firmly back on track as it needs the cooperation of suppliers to run its business effectively,” he said.
Macy’s (1858): Founded as R.H. Macy & Co. in New York City. Famous for the Herald Square flagship store and annual Thanksgiving Parade.
Bloomingdale’s (1861): High-end department store headquartered in NYC, now part of Macy’s, Inc.
Brooks Brothers (1818): Iconic menswear retailer known for classic suits and apparel. Filed for bankruptcy in 2020 but still operates.
Levi Strauss & Co. (1853): Global denim and apparel brand; pioneer of blue jeans.
Nordstrom (1901): Began as a shoe store in Seattle and is now a full-line department-store chain known for customer service.
JCPenney (1902): Nationwide department store chain that reorganized after a 2020 bankruptcy.
Saks Fifth Avenue (1902): Luxury department store; flagship opened in Manhattan in 1924.
Neiman Marcus (1907): Luxury department store headquartered in Dallas, Texas.
L.L. Bean (1912): Outdoor gear and apparel retailer; famous for its catalog and customer service.
Kroger (1883): Large supermarket chain headquartered in Cincinnati.
Piggly Wiggly (1916): First self-service grocery store, founded in Memphis, Tennessee.
Safeway (1915): Grocery chain founded in Idaho, now part of Albertsons Companies.
Walgreens (1901): Major national pharmacy chain headquartered in Chicago.
Lord & Taylor (1826): Oldest U.S. department store. Its flagship NYC store closed in 2021.
