{{ 'now' | timezone: 'America/New_York' | date: '%b %d, %Y' }} |
|
|
Hi, and welcome back to Line Sheet. Today’s Inner Circle issue
(upgrade here and expense it) is about the fraught situation at Saks Global, which you just can’t ignore right now. I lay out the possible outcomes as they stand and share some additional details on some major B plots.
Up top, notes on potential trouble at Goop’s e-commerce arm, the extant Dario Vitale collection at Versace, and a savvy, unrelated move from The Prada
Group.
Tomorrow on Fashion People, my guest is Paris-based New Yorker writer Lauren Collins, who joins me to discuss her recent examination of Uniqlo. I also urge you to subscribe to Lauren’s newsletter, Lettre Recommandée. But before that, listen to us attempt to get inside the mind of Mr. Yanai and unibare
here and here.
Mentioned in this issue: Saks Global, Gary Wassner, Richard Baker, Bergdorf Goodman, Yumi Shin, Neiman Marcus, Nordstrom, Marc Metrick, Mark
Guiducci, Gwyneth Paltrow, Goop, Dario Vitale, Julia Nobis, The Prada Group, Marty Supreme, LuisaViaRoma, Tommaso Maria Andorlini, Simeon Siegel, and many more… |
Three Things You
Should Know…
|
- What’s
up with Goop’s e-commerce business?: As you know, Gwyneth Paltrow’s diversified approach to building her Goop empire hasn’t always made the most sense. She had an opportunity to scale up significantly with beauty, but instead poured resources and energy into a large assortment of different businesses with varying models—which, of course, has hindered an acquisition of the company.
(Let’s see how the world reacts to her return to acting in Marty Supreme.)
Recently, we’ve received several inbound notes about Goop’s online shop, which sells a mix of brands—including Gwyn, formerly known as G. Label—via a traditional wholesale model. According to multiple sources, there are vendors who haven’t been paid for several months, and have not received a response from Goop when asking about payment. This is a story we know well; pretty much every retailer is behind on
payments these days. But I wonder what it portends for that arm of the Goop business. Maybe it’s time to phase it out? I reached out to Goop for comment on the vendor complaints, and also asked about the multibrand strategy. A rep did not respond to a request for comment.
|
|
|
A MESSAGE FROM OUR PARTNER |
|
|
- Now,
here’s how to handle a minor appropriation scandal: Today, The Prada Group partnered with two government organizations in India focused on “safeguarding, promoting and developing the Indian leather industry and heritage of Kolhapuri chappals,” or the t-strap, braided-leather sandals that come from Kolhapuri. Earlier this year, as you may (or may not) recall, Prada received internet-y backlash after showing a pair of similar sandals on a men’s runway.
Prada’s solution was to create a
limited-edition version of the sandal, made in collaboration with Indian artisans and properly crediting them. They will be available in February at Prada stores and online, and cost $930. The lesson: Give credit when it’s due. There’s no way Prada’s sales were hurt by this semi-scandal, or that many consumers even noticed. But by doing the right thing, the group has nipped any further queries around this topic in the bud. - The Dario collection lives:
One of the strangest things about this whole Dario Vitale–Versace ouster is that his Spring/Summer 2026 collection is still everywhere. The System cover featuring Julia Nobis in my favorite look (10) is being shared all over Instagram,
as are the campaign images, shot by Tyrone Lebon. After all, the company still needs to sell stuff, and while this collection is something of a ghost already, it will be available in stores. Now, we wait to see what The Prada Group has planned—not only in terms of creative director, but also the executive team.
|
|
|
As vendors field warnings about shipping to Saks, anxieties about the highly leveraged
multibrand retailer are spiking as the holiday season peaks. |
|
|
Last week, the fashion industry was jolted by a
stark message from Gary Wassner, the C.E.O. of Hilldun, a factoring firm that plays an essential role in the retail ecosystem. Companies like Hilldun purchase unpaid vendor invoices so that brands can fulfill orders without waiting for their check, thereby creating a critical liquidity bridge. In his letter, Wassner advised brands to halt their
shipments to Saks Global, the highly leveraged multibrand-retail conglomerate—comprising Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman—that publicly and privately dominates the industry discourse these days.
Over the past few months, factoring firms have become more of an emergency lifeline, especially for smaller brands. But Wassner expressed doubts about whether the cashflow would be sufficient to service the invoices. “We are at another tipping point, and the decisions that
Saks Global makes now will determine just how strong they could be,” Wassner wrote. “If the vision I have is not appreciated and shared by those determining the fate of the company, then I do not know where this will lead us.” |
|
|
A MESSAGE FROM OUR PARTNER |
|
|
Meanwhile, multiple vendors have told me that their payments from Saks Global are currently on hold. “No one
that we speak with can provide a payment date,” said one vendor, who is owed several million dollars. “I have a great business there, but I hate them with a passion!”
The next few weeks may be particularly decisive. On December 15, Saks Global owes another $120 million interest payment on its nearly $5 billion in debt. That payment shouldn’t be a problem, as the company can access cash from its asset-based credit facility. But will Saks have enough inventory? Prior to this year, many
fashion brands relied on the Saks Global portfolio for 50 percent of their wholesale business in the U.S.—a reality that underscores the initial industrial logic of the rollup. Based on my conversations, though, many vendors have already scaled back their dependence significantly. I’ve heard about companies that have diversified to as little as 10 percent. I’ve also spoken to executives at multiple brands that are prioritizing Bergdorf Goodman, the smallest and most prestigious entity in the
Saks portfolio. The company did not comment.
Wall Street has been tracking these developments closely. This week, Saks Global’s bonds were yielding between 59 and 78 percent, which indicates the market is pricing in a high risk of default. Saks Global chairman Richard Baker knows his options better than anyone, and while there are plenty of predatory lending vehicles and avaricious private credit behemoths that could provide a menu of unappetizing options, there’s also
the possibility of a Chapter 11 filing to restructure the debt. Baker, of course, may also be pursuing a clever option or two that would allow him to move forward without selling the business or restructuring. The company had no comment on this. (Disclosure: Earlier this year, Saks sued Puck over its coverage of the company’s debt management.) |
Among the possibilities floated in the press, after Saks restructured its debt in August, was the
notion that Baker might sell a 49 percent stake in Bergdorf Goodman. The industry has gone quiet on this notion since a
sale notice appeared in the Journal, but I have been able to eliminate at least one potential buyer. A couple of weeks ago, I got an email from a Reliance Retail representative, belatedly responding to my request for comment regarding the speculation that the Ambani-owned Indian industrial conglomerate might be interested in the stake. It may have been several days past my deadline, but I appreciated the effort. The guy denied on the record that Reliance was
interested at all.
The industry writ large desperately wants Saks to succeed, but many might actually accept Chapter 11 as a least bad sort of option: Preferred vendors could be paid some of what they are owed via insurance companies, and the company could close dozens of underperforming locations while still remaining in operation. Of course, if there are people within the industry who would prefer that outcome, few will admit it—and it’s presumably not the way Baker and
C.E.O. Marc Metrick would want things to shake out, since most of the leadership team would likely be removed in a restructuring.
Meanwhile, in late November, Saks Global took the time and money to file a lawsuit against Yumi Shin, Bergdorf Goodman’s former chief merchandising officer, accusing her of violating her noncompete agreement by accepting a job with Nordstrom—where she will, according to the suit, “reveal trade secrets and confidential
information” about the Saks Global business. The suit claims that Shin downloaded confidential business information from Saks platforms and then erased all the data from her work devices before submitting her resignation. “Saks will be immediately and irreparably harmed if Shin is permitted to begin her new position with Nordstrom,” the complaint reads.
Noncompetes are increasingly difficult to defend in court, and Shin’s is potentially complicated by the merger of Saks and NMG earlier
this year. In her motion to dismiss, Shin noted that the suit was filed in Texas, where the Neiman Marcus Group was headquartered, but where she has never lived or worked. Saks also says Shin owes them $48,184.65—a sum far less than the legal fees required to reclaim it. The whole thing reads a bit petty or defensive, especially given that Shin worked at the smallest division of the company.
Nevertheless, Saks Global continues to march forward. In late November, the company conducted
layoffs at Neiman Marcus’s Dallas warehouse. This wasn’t exactly surprising; realizing synergies was an expected outcome of the merger. Executing them in the busiest shipping and logistics window of the year, however, suggests that the holiday season will indeed be a crucible for the company. |
Vanity Fair will host its first Oscars Party under Mark Guiducci in LACMA’s
yet-to-be opened David Geffen Galleries. Sounds chic and something Hollywood people will like. Also: Vanity Fair is becoming a LACMA Art+Film Gala sponsor as part of a five-year partnership, which is also not a bad idea. (Gucci has been the lead sponsor since the event started in 2011.) [Vanity
Fair]
Hmm. Style Capital, the well-regarded, Milan-based private equity firm that had a super successful exit with Zimmerman, has pulled out of LuisaViaRoma. C.E.O. Tommaso Maria Andorlini has taken over the 22 percent stake, which means he owns 40 percent of the biz total. [WWD]
The
U.S. Customs and Border Protection agency has put in a request to require tourists to share five years of social media, as well as telephone numbers and email addresses, before entering the U.S. And you thought the tariffs were bad… [Guardian]
I truly don’t understand this beef between Ofr. and Isabel Marant, but it’s very French! [Instagram]
Simeon Siegel, my other favorite analyst, has joined Guggenheim Securities to lead the firm’s consumer equity research. Initiate coverage!!! [Press
Release]
Brunello raised its forecast after a “record year.” [WWD]
Here is Mrs. Prada on a carousel. I am sure these photos of her being incredibly sweet with her grandchild were not leaked strategically, but they definitely erase any remembrance of those A.I. images from last week.
[Instagram] |
And finally… Has someone sent Amanda Dobbins her
Marty Supreme merch yet?
Until tomorrow,
Lauren
P.S.: We use affiliate links because we are a business. We may make a couple bucks off them. |
|
|
An essential, insider-friendly Hollywood tip sheet from Matthew Belloni, who spent 14 years in the trenches at The Hollywood
Reporter and five before that practicing entertainment law. What I’m Hearing also features veteran Hollywood journalist Kim Masters, as well as a special companion email from Eriq Gardner, focused on entertainment law, and weekly box office analysis from Scott Mendelson. |
|
|
Puck sports correspondent John Ourand and a rotating cast of industry insiders take you inside the executive suites and owners boxes where
the decisions that shape the entire sports business are made. You’ll hear interviews with players, network execs, and everyone in between. The Varsity is an extension of John’s private email for Puck by the same name. New episodes publish every Wednesday and Sunday. |
|
|
Need help? Review our FAQ page or contact us for assistance. For brand partnerships, email ads@puck.news. You received this email because you
signed up to receive emails from Puck, or as part of your Puck account associated with {{customer.email}}. To stop receiving this newsletter and/or manage all your email preferences, click here. |
Puck is published by Heat Media LLC. 107 Greenwich St., New York, NY 10006 |
|
|
|
