What: Saks’ parent company, HBC, apologized to vendors for delayed payments, linking the delays to the ongoing acquisition of Neiman Marcus Group, which is expected to close by the end of the fiscal year.

Why it is important: The resolution of these delayed payments is crucial for maintaining vendor relationships and ensuring the smooth operation of Saks and Saks Off 5th. The successful closure of the Neiman Marcus acquisition, along with new financing and asset sales, is expected to stabilize financial flows and restore normal payment schedules, which is essential for vendor confidence and future business operations.

HBC, the parent company of Saks, has acknowledged delays in vendor payments, which have been exacerbated by the acquisition of Neiman Marcus Group. Company executives assured vendors that the financial challenges are temporary and tied to broader business issues, particularly those affecting Hudson's Bay in Canada. The acquisition of Neiman Marcus is expected to close by the end of the fiscal year, with new financing and asset sales improving liquidity and normalizing payment flows. Despite the challenges, Saks’ executives expressed confidence in the long-term benefits of the acquisition and committed to better communication and transparency with vendors going forward.

Saks apologizes for delayed vendor payments amid Neiman Marcus deal