The leaders of the Council of Fashion Designers of America, British Fashion Council, Camera Nazionale della Moda Italiana, and the Fédération de la Haute Couture et de la Mode are urging Geoffroy van Raemdonck, chief executive officer of Saks Global, to take steps to ensure that young and independent brands are treated fairly and responsibly in resolving outstanding payments with Saks.
In a joint letter sent Monday to van Raemdonck, which was obtained by WWD, they wrote, “We understand that restructuring processes are complex and often involve tough decisions. At the same time, we have been informed that some emerging and independent designers have been told they might not be paid for goods they have already delivered. For many of these businesses, losing payment for fulfilled orders is not just a financial setback but a direct threat to their ability to keep operating.”
The letter was sent by Laura Weir, CEO of the British Fashion Council; Carlo Capasa, president of Camera Nazionale della Moda Italiana; Steven Kolb, CEO of the CFDA, and Pascal Morant, executive president of Fédération de la Haute Couture et de la Mode.
Geoffroy van Raemdonck
Courtesy image
“Independent designers lack the financial reserves that large groups and conglomerates have. When payment for delivered goods is withheld, the effects can quickly go beyond a single transaction, impacting payroll, production commitments, and the stability of these companies,” the leaders wrote.
The four executives stressed that independent designers are essential to the global fashion industry and foster creativity, innovation and cultural relevance, shaping the industry’s future.
“The sustainability of fashion relies on a system that allows emerging businesses to participate and grow without facing excessive financial risks,” they said. “As organizations responsible for supporting and advancing designers in the four major fashion capitals, we feel a responsibility to address this concern directly. We strongly urge Saks Global to carefully evaluate the wider impact of the restructuring process and to take steps to ensure that young and independent brands are treated fairly and responsibly in resolving outstanding payments.
“The ongoing strength of our industry relies on supporting the next generation of designers. Ensuring fair treatment now would send a strong message about Saks Global’s dedication to the creative community that fashion ultimately depends on,” they concluded.
WWD reached out to van Raemdonck for comment Monday afternoon. A Saks Global spokesperson responded, “We have a great respect for the Council of Fashion Designers of America, the British Fashion Council, the Camera Nazionale della Moda Italiana, and the Fédération de la Haute Couture et de la Mode and the work they do on behalf of talented designers across our industry. The company is reviewing the letter that was sent today. Due to requirements within Chapter 11 cases, we are limited in the pre-petition payments we are authorized to make. We are focused on the steady progress we are making in rebuilding trust with our established and emerging brand partners and strengthening these relationships to drive our collective businesses. We work with a significant number of independent designers and look forward to building on our long-standing industry relationships as we lay the path for a strong future for Saks Global and our partners.”
As noted, as part of the Chapter 11 process, any amounts owed for goods or services provided prior to the filing date of Jan. 13 will be addressed through the court process. Payments for authorized goods and services rendered on a “post-petition” basis after Jan. 13 will be paid in the ordinary course of business.
In the last several weeks, Saks has made significant progress strengthening brand partner relationships, leading to a significant acceleration of inventory flow, with shipping resumed by nearly 600 brands, including large maisons as well as smaller brands, released $1.4 billion in retail receipts, as reported. Many brands, both large and smaller brands, have resumed shipping spring orders.
Over the last few weeks, Saks has designated some young and independent designers as “critical vendors,” and has told them they would be moving forward with them. But not all of them got that designation.
As one vendor put it, “We are a critical vendor, and if we weren’t, we’d be out of business.” The vendor said they are being paid 20 percent of what Saks owes them, but Saks has committed to moving forward with their business. “They’ll have the ability to multiply the business because there will be less vendors,” the executive said.