123-year-old retail chain faces Chapter 11 bankruptcy

Core Insights - Saks Fifth Avenue is facing significant financial struggles, with potential implications for a Chapter 11 bankruptcy filing due to ongoing cash flow issues and vendor payment delays [1][5][12] Financial Performance - Saks Global's Q2 revenue fell by over 13% year-over-year to $1.6 billion, with net losses widening to $288 million [12] - The company has $275 million in overdue payments to suppliers, indicating severe liquidity challenges [16] Vendor Relations - Saks has been consistently late in paying its bills, with Days Beyond Terms (DBT) figures ranging from 27 to 41 days, well above the industry average of 10-12 days [6][8][10] - Several vendors have reportedly stopped shipping to Saks and Neiman Marcus due to overdue invoices, exacerbating the company's inventory challenges [13][15] Market Position - The luxury retailer is losing customers and struggling to maintain supplier relationships, which are critical for operational effectiveness [11][19] - The company's reliance on vendor-run concession and marketplace models is currently sustaining its business, highlighting the fragility of its financial position [15]