Shoshanah Fashions, Inc., the company operating the Shoshanna clothing brand, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court on January 14, 2026. The case is listed as Case No. 26-10083.
The filing occurred on the same day that Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus, also filed for Chapter 11 bankruptcy. Saks Fifth Avenue and Neiman Marcus are key distribution partners for Shoshanna Fashions.
Data shared by Ragini Bhalla, Head of Brand and Spokesperson for Creditsafe, indicates the brand is likely owed money by its partner. Research showed Saks Inc. had a pattern of paying vendors late in 2025, with Days Beyond Terms hovering between 30 and 41 from January to December, more than three times higher than the industry average of approximately 9.
Between June and September 2025, the company's DBT rose consistently from 30 to 41. From October through December 2025, the DBT was about 32 to 33, meaning the company typically paid vendors more than a month late.
"If a vendor and Saks agreed to Net 90 payment terms, that means they might not be paid for a single invoice for at least 4 months after fulfilling orders or completing services for Saks," Bhalla shared. "While some larger vendors might have been able to wait that long to get paid, small and mid-sized vendors may not have had that luxury and could have had to make hard financial decisions for their own businesses."
Shoshanah Fashions has not made a public statement about its Chapter 11 bankruptcy filing. The brand's founder, Shoshanna Lonstein Gruss, has not commented publicly on the filing, and the brand has not acknowledged it on its website or social media feeds.
The company shared on its website that after 27 years, the Shoshanna collection has developed fans including Mindy Kaling, Isla Fisher, Kelly Ripa, and Meghan Markle. The collection can be found in retailers like Bergdorf Goodman, Neiman Marcus, Saks Fifth Avenue, Bloomingdale's, and over 500 specialty stores internationally.
Shoshanna Lonstein Gruss founded the brand in New York City in 1998. The brand focuses on elegant, feminine women's fashion, primarily dresses, eveningwear, and swimwear. It is carried at high-end retailers and has its own store.
According to CNBC, ahead of the filing, Saks secured $1.75 billion in new financing from a group of the company's senior secured bondholders and asset-based lenders. $1 billion is debtor-in-possession financing to fund operations while in Chapter 11.
Bhalla wrote that given Saks also missed debt payments and filed for bankruptcy, it increases the likelihood that some vendors may never get paid for work completed or orders fulfilled. "This data suggests that Saks was struggling with cash flow and liquidity for some time, contributing to its damaged relationships with suppliers," she wrote.
Even if vendors get partial payments, that process may take months as the bankruptcy works through the court. The bankruptcy process is not bound by any previous agreements.
JD Supra reported that on February 14, the newly formed Saks Global announced its plan to pay vendors past due balances in 12 monthly installments beginning in July.
Lawyer Monthly reported that within days of Saks' Chapter 11 filing, the exposure profile became unavoidable for organizations that rely on leveraged retail partners, extend trade credit, underwrite retail risk, or finance inventory.