Luxury Brands Are Making a Big Bet on Saks. Will It Come Back to Haunt Them?

If Saks Global files for bankruptcy in the coming days, the hundreds of brands that ship merchandise to Saks, Neiman Marcus and Bergdorf Goodman stores will be at the back of the list of creditors.

They will likely receive partial payments on what they’re owed, at best. And in a worst-case scenario, if the retailer can’t reach a deal with creditors, it may close its stores and liquidate its inventory, much like Barneys in 2019 and Matches Fashion in 2024. In both cases, brands that had…