For more than a year, Saks Fifth Avenue has been slow to pay for some of its merchandise, resulting in complaints by some vendors and others holding back on shipments. In a memo sent to suppliers Feb. 14, The Wall Street Journal reports, Saks sought to reassure the brands that stock its stores, saying it would pay for new orders within 90 days of receipt and that all past-due payments would be paid in 12 installments starting in July.
“I understand and am sympathetic to the last 18 months and the challenges regarding payments,” wrote Marc Metrick, CEO of Saks Global (New York), the newly formed entity created by Saks’ merger with Neiman Marcus (Dallas). “Our expectation is that this provides the clarity and certainty you have been seeking. To that end, we are looking forward to seeing the flow of merchandise return to normal levels.”
The retailer had been conserving cash as it negotiated to buy Neiman Marcus. That deal closed shortly before Christmas and Metrick said that merger has strengthened the company’s financial position, the Journal said.
“We are committed to fulfilling all of our obligations to our brand partners, and ask that you continue to partner with us, including by shipping merchandise, so that we can grow our business together,” he wrote.
