Impact of Saks Global Bankruptcy on Fashion Week
Fashion insiders have shared with Page Six that Saks Global’s recent bankruptcy has noticeably affected this February’s fashion week. Brands are now reevaluating their plans, scaling back on expensive runway shows and elaborate afterparties.
This season’s calendar is less packed than the usual September lineup, and many feel it lacks the excitement that’s typically present. With the event reduced in scale, the atmosphere feels rather dull.
In January, Saks Global, which operates renowned stores like Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for bankruptcy protection. Many designers are still waiting for payments for items they’ve already delivered.
Gary Wasner, CEO of Hildan, which supports brands with shipments to retailers, remarked that while fashion shows can be costly for smaller brands, they become even pricier for larger ones. Due to the economic climate and losses from recent bankruptcies, some brands are opting to take a break this season, with some even doing so indefinitely.
Numerous brands are still looking to receive payments from Saks for their shipped products, which has put them in a tough spot. One industry source noted, “Many are financially strained. Costs for shows and parties are becoming hard to justify.” The estimated cost for basic fashion production is around $300,000, and hosting a party can range from $60,000 to $500,000.
“There’s no budget,” the source continued. “Everyone’s trying to cut costs. We have to reconsider many external plans, including marketing.” Another insider emphasized the pressure to recalibrate, citing the numerous uncertainties facing companies in the current climate. “The situation has shifted drastically since early January,” they noted.
Fern Mullis, who was instrumental in starting Mercedes-Benz Fashion Week, echoed this sentiment, stressing that Saks Global’s Chapter 11 filing is significantly impacting the industry.
However, Maris pointed out other variables that might affect participation this year—like harsh weather and fewer international visitors. There’s also the concern that this year’s Fashion Week coincides with a long weekend, when many people likely have family commitments.
Still, there’s a silver lining. Some parties are indeed happening. Nordstrom hosted an elegant gala led by CFDA Chairman Tom Brown and CEO Stephen Kolb, featuring attendees like Chloe Malle from Vogue and various designers.
Ralph Lauren managed to attract a star-studded front row with celebrities such as Anne Hathaway and Lana Del Rey. The Marc Jacobs show welcomed notable figures like Sofia Coppola.
I’ve heard Christian Siriano plans to host a dinner for models and VIPs connected to his show at his new restaurant, The Eighth, which opens this week. Meanwhile, Derek Warburton’s magazine, “Gurus,” is hosting a party at Maison Close.
Additionally, Susan Alexandra will celebrate a new store opening, while Jennifer Bear and Julia Hobbs will launch a tiara collection at Climax Books.
As for leadership changes at Saks, former Neiman Marcus CEO Geoffroy van Raemdonk will be taking the reins as Saks Global CEO, while Darcy Pennick, previously president of Bergdorf Goodman, is stepping in as president and chief commercial officer.
According to the New York Times, Saks has secured about $1.75 billion in financing for its post-bankruptcy recovery, primarily from bondholders. The company aims to emerge from bankruptcy later this year, committing to fulfilling customer programs, settling vendor payments, and maintaining employee salaries.
