Last week an unprecedented movement began in the fashion world. Executives from four major international industry organizations sent an open letter to Saks Global CEO Geoffroy van Raemdonck. In it, they called on him to guarantee the payment of outstanding invoices to independent designers and young designers as part of the judicial restructuring of the insolvent retailer.
What’s happening affects both the financial health of a major luxury retailer and the economic viability of a significant part of fashion’s creative ecosystem.
Joint appeal from the four major global industry organizations
In a joint letter, the Council of Fashion Designers of America (CFDA), the British Fashion Council (BFC), the Camera Nazionale della Moda Italiana (CNMI) and the Fédération de la Haute Couture et de la Mode (FHCM) asked Saks Global to consider the impact on designers of non-payment for goods already delivered.
The signatories pointed out that independent designers do not have the financial reserves of large corporations, reports the trade magazine Women’s Wear Daily (WWD). They also noted that refusing to pay for fulfilled orders is not just a financial setback. It also poses a direct threat to their ability to continue operations.
“The continued strength of our industry depends on the support of the next generation of designers,” wrote the representatives of the four major institutions. They highlighted the role of independent creativity in the innovation, diversity and cultural appeal of the sector.
Context: Saks Global is undergoing a Chapter 11 restructuring
The Saks Global group of companies, which includes retailers Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, filed for Chapter 11 bankruptcy protection in early 2026. The total debt is estimated at several billion US dollars. The retailer has since gained access to an additional $300 million of its $1.75 billion in committed capital. This came after major bondholders approved its five-year plan. These funds are in addition to the $825 million already available.
According to WWD and Reuters, this provides the company with the liquidity it needs to stabilize its operations, improve the flow of goods and resume supply agreements with nearly 600 partner brands.
This cash injection is accompanied by an ambitious operational plan. This includes the closure of twenty Saks Fifth Avenue stores, four Neiman Marcus stores, 57 Off 5th stores and five Last Call centers. At the same time, activities will be concentrated on three priority sales locations in the USA.
According to Geoffroy van Raemdonck, CEO of Saks Global, this plan will strengthen relationships with brand partners. It is also intended to ensure a smoother flow of goods and guarantee sales at full price and long-term profitability.
Risks for independent designers
This financial conflict highlights a structural reality of the industry’s business model: young designers often work with very tight margins and without significant cash reserves. According to several reports from previous research, unpaid invoices from a major retailer, even modest amounts, can quickly jeopardize the ability of a small fashion house. This concerns the payment of suppliers or employees or even the continuation of production.
For example, in a 2025 article, Los Angeles brands explained that they had to take out bank loans to make up for late payments from Saks. Some reported payment delays that far exceeded industry standards – we were talking about 90 days compared to a standard of 30.
Why this debate is fundamental for the industry
The message from the four major organizations is not just a request for payment. It raises the question of the sustainability of the fashion business model. This is based on a complex ecosystem of large fashion houses, retailers and young designers. In an industry where visibility, innovation and diverse talent drive growth, the viability of small brands relies heavily on stable business relationships with their retail partners.
This situation reveals the tensions between the financial restructuring of a key player and the need to preserve the industry’s entire creative ecosystem. Many emerging fashion houses do not have the margins or reserves to absorb losses from unpaid invoices.
A strong but non-binding signal – what are the possible consequences?
The letter is not legally binding, but it carries unusual symbolic weight. It reflects a union of influential powers in the sector (America, Europe, Italy, France) to protect a vulnerable part of the sector. If Saks ignores these calls, it could damage its reputation among designers. It could also weaken long-term business relationships, especially as the company tries to reposition itself after filing for Chapter 11.
For independent designers, the next steps also depend on the legal treatment of claims that arose before the bankruptcy filing. During major restructurings, these claims are often treated as subordinated debt. This can mean only a partial repayment or a repayment spread over long periods of time.
Towards a balance between finances and creativity
The mobilization of major fashion institutions to support young designers illustrates a growing tension in the industry. How do you balance the financial restructuring needs of a large retailer with the long-term viability of a network of independent designers essential to the sector’s innovation?
As Saks Global tries to recover financially after a complicated bankruptcy filing and store closures, pressure is mounting. The restructuring strategy should not only take into account the large suppliers, but also the small brands that shape the creativity and future of the industry.
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