Saks Playing Hide and Seek with Payments. Small Vendors Say They’re Still Waiting.

Luna Bronze, a plucky small Australian self-tanner brand, thought they’d hit the big leagues when Saks Fifth Avenue came knocking. Imagine their excitement—millions of wealthy shoppers just waiting to glow bronze. Fast forward to October 2023, and that dream turned into a bit of a nightmare. After shipping five orders since July, Luna Bronze noticed something odd—they hadn’t been paid. Not a dime. When Saks tried to place a sixth order, Luna Bronze said, “No money, no tan!” They claimed Saks owed them around $9,000. Turns out, Luna Bronze wasn’t alone in this cashless conundrum. French skincare brand Terre de Mars was waiting on $8,000, Jolie Skin was out $15,000, and Saks Off Fifth (the budget-friendly cousin) owed a whopping $41,000 to CTE Watch. Some of these vendors finally collected payments after The Wall Street Journal gave Saks a nudge, but the hardship was genuine.

Saks answered with - any payment delays were just part of dealing with the “challenging macroeconomic environment.” In retail-speak, that’s code for, “Things are tough, so we’re keeping your money for a bit.” Usually, retailers pay up within 60 days, but Saks has taken its time, which is unusual, to say the least. Here’s the kicker: while these small brands were pleading for their checks, Saks was busy trying to buy Neiman Marcus for a cool $2.65 billion. Yes, billion with a “B.” Vendors like Emiliano Shnitzer-Bartocci, who’s still waiting for $41,000, couldn’t help but wonder, “You’ve got billions to buy a competitor, but you can’t pay us?”

Small brands were especially feeling the pinch. Kari Gran Skin Care, owed just $1,400, was sweating every penny until they finally got paid in late July. Some vendors, like Phillips House, resorted to lawsuits and, surprise surprise, Saks paid up, but not everyone has the time or resources for perilous legal proceedings. If you’re a small brand, working with a big retailer like Saks might just be a game of financial hide-and-seek—where you do all the seeking.

Tired of the constant chase? Let’s turn the sprint into steady growth! Reach out, and we’ll help you stabilize and scale your business today. https://expresstradecapital.com/contact/