Saks Fifth Avenue Embraced Knockoffs, Angering Designers

Vendors say Saks shifted from a luxury curation model to a predatory 'extraction business' focused on cheaper imitations.

Published on Feb. 23, 2026

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As Saks Fifth Avenue shifted its business model to focus on high-end brands alongside cheaper imitations, designers who had long-standing partnerships with the retailer say they were pushed out. Vendors describe a deteriorating relationship marked by extended payment terms, chargebacks, and demands for higher markups - all while Saks buyers told them their job was to source 'mid-level knockoffs.' This 'Walmartization' of Saks led some designers to pull their brands before the company's eventual bankruptcy, which left many vendors owed millions.

Why it matters

Saks' move away from curating a luxury shopping experience toward a model focused on volume and margins over brand integrity highlights the challenges facing traditional department stores. As they try to compete with online retailers, some have sacrificed the in-store experience and relationships with designers in favor of a race to the bottom on pricing. This has alienated loyal customers and vendors, ultimately contributing to Saks' downfall.

The details

Hadley Pollet, president and creative director of her eponymous brand, recalled a meeting with a Saks buyer who told her the store's new strategy was to stock high-end brands alongside cheaper imitations so customers could 'get the same look.' Pollet said this 'knockoff strategy' put a name to the warning signs she had been seeing for years, including stretched payment terms, chargebacks, and demands for higher markups. She decided to pull her brand from Saks before the company's bankruptcy. Other vendors, like Monil Kothari of Haus of Brilliance, weren't as fortunate, with Saks stopping payments and communication before the bankruptcy filing.

  • In 2021, Kothari onboarded his jewelry brand to Hudson's Bay Company's marketplace (Saks' parent company before the Saks Global spinoff in 2025).
  • Between 2022 and 2023, Kothari's business generated six figures in drop-ship volume on the Hudson's Bay platform.
  • In the months before filing for bankruptcy in 2025, Saks Global sent vendors letters promising to repay $275 million in outstanding balances over 10 months.

The players

Hadley Pollet

President and creative director of her eponymous brand, which had a long-standing partnership with Saks Fifth Avenue.

Monil Kothari

Founder of the fine jewelry brand Haus of Brilliance, which onboarded to the Hudson's Bay Company marketplace in 2021.

Sidney Scheinberg

A bankruptcy attorney who represents jewelry vendors caught in the Saks Global bankruptcy filing.

John McBarron

A former Saks Fifth Avenue sales associate who left the company for a job at Bloomingdale's.

Dr. Veronique Ehamo

A former Hugo Boss sales professional who worked at the Saks Fifth Avenue flagship store in New York.

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What they’re saying

“This is an extraction business model now. This is not a model where somebody's partnering with you.”

— Hadley Pollet, President and creative director

“You've put that item in trust with the retailer. You've trusted the retailer to keep the merchandise and return the proceeds. That trust was broken.”

— Sidney Scheinberg, Bankruptcy attorney

“It's infuriating to read as someone who has been 'let down' by this bankruptcy. I'm just one of many 'little people' who will probably never be paid.”

— Brenda Teall, Freelance commercial photographer (LinkedIn)

What’s next

The judge in the Saks Global bankruptcy case will decide in the coming weeks whether to allow the company to repay the $275 million it promised to vendors before the filing.

The takeaway

Saks Fifth Avenue's shift from a luxury curation model to a focus on volume and margins over brand integrity alienated both designers and customers, contributing to the retailer's eventual downfall. This case highlights the challenges facing traditional department stores as they try to compete with online retailers, and the importance of maintaining trust-based partnerships with vendors and providing a differentiated in-store experience for shoppers.