Bradford J. Sandler Quoted in Vogue Business, WWD, TheStreet, and Glossy on Saks Global’s Potential Bankruptcy

Bradford J. Sandler recently spoke with Vogue Business, Women’s Wear Daily (WWD), Glossy, and TheStreet about Saks Global’s mounting financial challenges and the possibility of a chapter 11 bankruptcy filing. The coverage appeared in Vogue’s article, “Brands Grapple with Saks Global’s Uncertain Future,” WWD’s “How a Saks Global Bankruptcy Would Hit Fashion Brands,” Glossy’s “What Can Brands That Are Owed Money Expect if Saks Global Goes Bankrupt?” and TheStreet’s “Why Saks Fifth Avenue Faces Chapter 11 or liquidation.” Together, the articles examined Saks’s increasing debt burden, liquidity concerns and operational struggles.

In Vogue, Brad emphasized the importance of rebuilding Saks’s inventory and restoring confidence among luxury consumers. “They need to get new inventory into the stores — variety is key. They need to develop a model that makes the luxury consumer feel special,” he said. Brad noted that achieving this goal will require Saks to repair strained relationships with its vendors, particularly amid concerns over missed payments and limited communication. He explained that addressing inventory challenges “is going to require Saks speaking with its vendors and being transparent; explaining that they are working to pay the brands, and that their transformation makes sense, and why.” He added that “Saks should not talk ‘at’ their vendors, but rather regularly and consistently talk ‘to’ their vendors — make them understand that Saks views them as partners in the go-forward business.”

Brad told TheStreet, “A filing is very likely imminent. Saks has both operational and financial ills. Saks took on too much debt with the Neiman Marcus acquisition. The huge debt burden caused a downward spiral and a liquidity squeeze,” he wrote. Speaking with WWD, Brad predicted that Saks could file for bankruptcy as early as the first week of February. He discussed the company’s reliance on its brand partners, stating, “In order for Saks to survive, they need the brands. Some of the brands need Saks as well, but I don’t think they need Saks as much as Saks needs the brands.”

In Glossy, Brad addressed the potential consequences for fashion brands if Saks files for bankruptcy. He said, “At the end of the day, any Saks bankruptcy is likely to be ugly for the brands, and it is likely that the brand community will receive pennies on the dollar, absent some litigation recovery, because the unsecured claim pool will likely be enormous, potentially well in excess of a billion dollars.”

Read the full articles below.

Vogue – “Brands Grapple with Saks Global’s Uncertain Future”

Women’s Wear Daily – “How a Saks Global Bankruptcy Would Hit Fashion Brands” (subscription required)

Glossy – “Fashion Briefing: What can brands that are owed money expect if Saks Global goes bankrupt?” (subscription required)

TheStreet – “Why Saks Fifth Avenue Faces Chapter 11 or liquidation”