Saks Reports $100 Million Loss Amid $275 Million in Overdue Supplier Payments

Saks Global Enterprises reported a $100 million loss in the fiscal year ended February 1. The luxury retailer has $275 million in overdue payments to suppliers. Despite a $350 million financial lifeline, Saks bondholders remain skeptical about receiving their first coupon payment. The company expects to realize $285 million in run-rate synergies by the end of this year.

Saks Global Enterprises, a leading luxury retailer, has reported a significant financial setback for the fiscal year ended February 1, recording an adjusted loss of over $100 million. The company's struggles are compounded by a $275 million debt to suppliers, as reported to creditors during a call on Friday [2].

The luxury retailer has been grappling with liquidity issues and has secured a $350 million financial lifeline ahead of a looming coupon payment, which totaled $120 million due in June [2]. Despite this, bondholders remain skeptical about the company's ability to meet its financial obligations, with bond prices reflecting deep investor skepticism [2].

The company expects to realize $285 million in run-rate synergies by the end of this year, up from initial expectations of $150 million [2]. However, the company's bondholders have expressed concerns about the company's financial health, with the value of inventory at the end of the year being $2.1 billion [2].

Saks Global Enterprises is also facing a legal dispute with Pathlight Capital, a lender involved in its $2.7 billion acquisition of Neiman Marcus in 2024. Pathlight claims Saks owes $8.8 million in structuring fees for the deal's financing and restructuring [1]. Saks counters that Pathlight's lack of cooperation contributed to the financial distress and restructuring of its former parent, Hudson’s Bay Company [1].

The company's financial troubles are further exacerbated by strained vendor relationships. Saks has been late on vendor payments for over 18 months, leading to supply disruptions. In February 2025, Saks announced a new payment structure, but vendors remain concerned about the company's financial viability [1].

Saks Global Enterprises is navigating a complex financial landscape, with significant challenges ahead. The company must address its overdue payments, navigate the legal dispute with Pathlight Capital, and reassure bondholders and vendors of its financial stability. The outcome of these challenges will determine the company's ability to integrate Neiman Marcus and reshape the U.S. luxury retail landscape [1].

References:
[1] https://cobaltintelligence.com/blog/post/pathlight-capital-vs-saks-global-dispute
[2] https://www.bloomberg.com/news/articles/2025-05-30/saks-reveals-100-million-loss-in-no-questions-creditor-call