While the state of Saks Global’s past-due bills has been the burning topic at cocktail parties, runway shows and more than a few tough calls with the retailer’s management, the frustration that vendors have felt has rarely had a full airing.
Brand executives complain and grumble and at least some have said they’re refusing to send new orders without cash up front, but most brands have opted not to take their complaints to court in favor of maintaining their relationships with Saks, which also owns Neiman Marcus and Bergdorf Goodman.
The exception is Jovani Fashion.
The New York designer, manufacturer and wholesaler of women’s dresses sued Saks Global and its Neiman’s division in New York Supreme Court, looking to recoup money it says it’s owed for shipments arranged this year.
While the suit was filed in October, Saks Global has been given until Dec. 19 to reply to the complaint.
The luxe retailer said, “As a matter of company policy, we do not comment on pending litigation.” The dressmaker’s attorney, Jonathon Warner of Warner & Scheuerman, said: “Jovani Fashion and I do not comment on active litigation. Jovani remains focused on serving its global retail partners and delivering exceptional eveningwear.”
Saks Global has been struggling to keep up with its payments since before it acquired Neiman Marcus Group in a $2.7 billion deal in December 2024. Neiman’s had been paying its bills before the deal and once the deal closed, vendor hopes were elevated that Saks too would get current.
But the first half of the year turned out to be something of a slog for both businesses as they sought to find a new balance and vendors what to make of the new luxury mega retail company.
In its complaint, Jovani said that it shipped the retailer goods “at the agreed and reasonable price of $344,615.51” between mid-January and the end of August.
“Defendants never rejected any of the goods sold and delivered,” the suit claimed.
“Jovani submitted statements of account to defendants in connection with the goods … The statements of account were received and accepted without objection … and defendants acknowledged their indebtedness by making partial payments to Jovani.”
The dressmaker, which specializes in prom, evening and formal dresses, received a payment of $48,763.80 on June 6 and another $199.80 on June 10.
That leaves $295,651.91 still to be paid, plus interest, which the suit is looking to recoup.
“Defendants have refused to honor their contractual obligation to pay for the goods they accepted,” Jovani said in the suit.
Pryor Cashman attorney Brad Rose, who is not involved in the case, said: “It really is a very difficult decision for a manufacturer to make to sue a major retailer. We’re in a different environment right now. There’s a lot of stress at every end, from manufacturing to retailing because of tariffs and inflation and other things. The environment may just be getting riper for manufacturers to seek payment before it’s completely out of their hands.
“This may be so material to a manufacturer that they want to take the situation into their own hands and see where the chips fall,” Rose said.
While Saks Global has yet to reply, the company has been open about being late on some of its bills in the past and stressed that the situation has improved this fall and that it is actively working to rebuild trust with the vendor community.
Rose said that manufacturers can have strong claims in such cases.
“In New York and in many other states, if you send an invoice and it’s held by the recipients for a reasonable period of time and there’s no objection to it, there’s a presumption that’s created that the money is owed and you have no defense,” he said.
But it’s not a quick road.
If the case is not settled and goes all the way through to trial, Rose said it could take 18 to 24 months to come to a resolution.
In fashion these days, that’s at least three lifetimes.
