Full Breakdown
Saks Global Bankruptcy Triggers Payroll Issues for Bergdorf Goodman Employees
2/13/2026, 8:20:03 AM
Payroll Deductions and Employee Concerns
Employees at Bergdorf Goodman, a high-end department store in Manhattan, have reported significant and unexplained deductions from their paychecks, with some claiming up to 75% of their earnings have been withheld since January 1, 2026. This issue arose shortly after Saks Global, the parent company of Bergdorf Goodman, filed for Chapter 11 bankruptcy protection on January 13. Affected workers have expressed frustration, stating that the deductions have left them unable to meet basic financial obligations, such as paying rent or purchasing groceries. One employee noted, “There’s no way the government is taking 75% out of [my] paycheck,” highlighting the severity of the situation.
Company Response and Employee Experiences
Saks Global has stated that there were no systemic errors related to payroll tax withholdings or benefits deductions, attributing variations in net pay to routine annual resets. However, employees have countered this explanation, citing discrepancies in pay among colleagues who sold similar amounts of merchandise. Reports indicate that some workers have seen their commissions drop by over 50% due to a lack of new merchandise shipments, exacerbating the financial strain. One employee remarked, “It’s lack of transparency and honestly lack of respect for the employees,” emphasizing the need for clearer communication from management.
Impact on New York Fashion Week
The bankruptcy of Saks Global has also cast a shadow over New York Fashion Week, with many brands reconsidering their participation due to financial uncertainty. Fashion insiders report that the event feels particularly scaled back this season, as designers and brands tighten their budgets. Gary Wassner, CEO of Hilldun Corp., noted that some brands have chosen to pause their participation indefinitely due to the financial implications of Saks' bankruptcy. The cost of producing a fashion show can range from $300,000 to over $500,000, making it difficult for smaller brands to justify the expense in the current climate.
Broader Industry Implications
Fern Mallis, a key figure in the fashion industry, stated that the impact of Saks Global's bankruptcy is "monumental," affecting not only the retailers but also the designers who rely on timely payments for shipped merchandise. Many brands are facing significant financial losses and are forced to recalibrate their marketing and production strategies. While some events are still taking place, the overall atmosphere of Fashion Week has shifted, reflecting the broader challenges within the retail sector.
Official Statements and Future Outlook
Saks Global has indicated its intention to emerge from bankruptcy later this year, asserting that it will honor customer programs, make payments to vendors, and continue to pay employees. However, the ongoing payroll issues at Bergdorf Goodman raise questions about the company's ability to fulfill these commitments. As employees continue to seek clarity on their paychecks, the situation underscores the challenges faced by both workers and the retail industry amid financial turmoil.
Verbatim Quotes
- “There’s no way the government is taking 75% out of [my] paycheck,” — Anonymous Bergdorf Goodman Employee
- “It’s lack of transparency and honestly lack of respect for the employees, and as extension, for the customer,” — Anonymous Bergdorf Goodman Employee
- “So many people lost so much money,” — Fashion Industry Insider
- “Because of the environment and losses many of these brands are going to have to take by virtue of the bankruptcy and by virtue of uncertainty, some brands have chosen to pause this season and I know some who have chosen to hold off indefinitely.” — Gary Wassner, CEO of Hilldun Corp.
