Upscale discount retailer closing stores, no bankruptcy

Core Insights - Saks Global, the parent company of Saks Fifth Avenue, is facing significant financial distress, highlighted by persistent late payments and cash flow issues [2][3][6] - The company is closing nine Saks Off 5TH locations as part of a strategy to manage its store footprint, although this move indicates deeper underlying problems [4][5] - Data shows that Saks' Days Beyond Terms (DBT) has consistently exceeded the industry average, indicating liquidity challenges and potential difficulties in managing accounts payable [3][6] Financial Performance - Saks' DBT has remained well above the industry average of 10-12 days, with figures ranging from 27 days in November 2024 to 41 days in January and March 2025 [3] - Despite a slight improvement in DBT to 30 days in May and June 2025, it surged back to 39 days in August and September 2025, signaling ongoing liquidity issues [6] Operational Challenges - The company has been slow to pay some bills, leading vendors to reduce shipments to its brands, further exacerbating its operational difficulties [8] - The closure of multiple locations is part of a broader strategy to preserve cash amid these challenges [5][8]