Saks Global Bankruptcy Changes the Landscape of NYFW
Saks Global Bankruptcy Affects New York Fashion Week
The recent bankruptcy of Saks Global is casting a significant shadow over February’s New York Fashion Week, as fashion brands tighten budgets and reconsider lavish runway shows and after-parties. Multiple industry insiders have noted that this year’s schedule, typically less packed than September’s, appears particularly sparse, with several events significantly scaled back.
In January, Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection. This move has left many designers unpaid for merchandise that has already shipped. High-fashion financier Gary Wassner, CEO of Hilldun Corp., which supports over 120 brands selling to Saks Fifth Avenue, highlighted the financial strain on designers. “The cost of a fashion show is significant for a small brand, more expensive for larger brands,” Wassner stated. He noted that many brands are pausing their participation this season, some indefinitely, due to the pervasive uncertainty following the bankruptcy.
The financial repercussions extend beyond simple show cancellations. One industry insider shared, “So many people lost so much money. People can’t afford to do shows or parties. A lot of people shipped and they will never see that money.” Typical production costs for a fashion show can reach around $300,000, while party expenditures range from $60,000 to $500,000.
With many brands awaiting payment, industry sources emphasize a need for recalibration. “Budgets aren’t there; people are trying to save on everything they can,” one source commented. “Everything you planned to do externally, including marketing, you have to pull back on what you can.” Fern Mallis, founder of Mercedes Benz Fashion Week, acknowledged that the fallout from Saks’ bankruptcy is substantial, stating that it “is definitely weighing on the industry and having some impact.”
Despite these challenges, Mallis noted other elements contributing to the lean atmosphere this season, including frigid temperatures and reduced attendance from international guests. Nonetheless, a few events are still scheduled. Nordstrom recently hosted a stylish gathering featuring Vogue’s Chloe Malle and notable designers like Joseph Altuzarra and Stacey Bendet. Ralph Lauren’s show attracted an A-list crowd, including Anne Hathaway and Lana Del Rey.
Looking ahead, Christian Siriano plans a dinner for models at his upcoming show, while others, including Susan Alexandra and Jennifer Behr, are hosting their own events. Meanwhile, Saks Global has announced that Geoffroy van Raemdonck, former CEO of Neiman Marcus, will lead the company as it navigates its restructuring process, alongside Darcy Penick, the former president of Bergdorf Goodman. According to reports, Saks has secured approximately $1.75 billion to support its operations during bankruptcy and aims to honor all customer programs and vendor payments while continuing to compensate employees.
