What: Saks Fifth Avenue’s ongoing financial struggles have resulted in delayed supplier payments and heightened speculation about a potential Chapter 11 filing.

Why it is important: Accepting cryptocurrencies reflects a broader shift in retail toward innovative, seamless payment experiences, aligning with global trends in retail.

Saks Fifth Avenue, a storied American department store brand with roots dating back to 1902, is facing significant financial challenges that threaten its future. Over the past year, the company has consistently paid its vendors late, with Days Beyond Terms (DBT) figures remaining well above the industry average—ranging from 27 to 41 days late, compared to the typical 10–12 days. These persistent delays have raised concerns about Saks’ liquidity and its ability to secure holiday inventory, putting further strain on supplier relationships and operational stability. While the company has not publicly commented on a potential Chapter 11 bankruptcy filing, industry analysts and credit agencies have flagged the sustained payment delinquency as a red flag for underlying cash flow distress. The situation at Saks mirrors the broader struggles of century-old department stores, many of which have either disappeared or been absorbed by larger chains, underscoring the immense pressures facing legacy retailers in today’s rapidly evolving retail landscape.

IADS Notes: Saks Fifth Avenue’s ongoing financial distress is emblematic of the broader challenges facing legacy department stores in the U.S. Despite reporting $350–400 million in liquidity in April 2025, Saks Global has strled with persistent vendor payment delays and aggressive cost-cutting measures following its December 2024 merger with Neiman Marcus (WWD, April 2025). These liquidity issues have led to credit downgrades and refinancing deals viewed as tantamount to default, with S&P’s September 2025 scorecard highlighting the company’s fragile financial health and the operational disruptions caused by extended payment terms (WWD, September 2025). The crisis has been compounded by high debt and declining sales, as detailed in August 2025, when overdue payments reached $275 million and vendors began halting shipments (Financial Times, August 2025). This situation mirrors the existential threats facing other century-old retailers, as explored in June 2025, where the Saks-Neiman Marcus merger was cited as a test case for the survival of heritage brands in a rapidly evolving retail landscape (Fashion Network, June 2025). The closure of historic downtown flagships, such as Neiman Marcus in Dallas and Macy’s in Philadelphia, further underscores the sector’s retreat from traditional retail models in favor of operational efficiency and real estate monetization (Forbes, March 2025; The Robin Report, March 2025).

And here we are… rumors of Saks’ chapter 11 are surfacing