Again in 1993, Shoshanna Lonstein Gruss, then simply Shoshanna Lonstein, grew to become a tabloid darling as a result of she dated Jerry Seinfeld on the top of his sitcom fame.
That was earlier than you may be social media well-known, however basically, she was one of many first influencers, and she or he parlayed the celebrity of her four-year relationship right into a profitable profession as a dressmaker.
Lonstein Gruss was a uncommon individual, again in these days, who managed to show fame by affiliation into an actual profession. Her Shoshanna clothes model was revered and enduring, not an try and capitalize on her identify recognition, as occurred with Monica Lewinsky’s purse line, or in a newer instance, Mike “The Situation” Sorrentino’s “Situation Nation” clothing line.
Shoshanna operates its own store, while also being sold at retailers including Saks Fifth Avenue, Neiman Marcus, and Bloomingdale’s. It also has some items for sale on Amazon.
Now the retail brand has filed for Chapter 11 bankruptcy, on the same day that Saks Global and Neiman Marcus also filed. (It’s important to note that the company behind the Shoshanna brand uses a slightly different spelling — i.e., Shoshanah Fashions.)
Shoshanah Fashions files for Chapter 11 bankruptcy
Lonstein Gruss may have started as a tabloid figure, but she has a deep history as a respected fashion designer.
“After 27 years of dedication and innovation, the Shoshanna assortment has developed a legion of followers, together with Mindy Kaling, Isla Fisher, Kelly Ripa, and The Duchess of Sussex, Meghan Markle. The gathering could be present in luxurious retailers like Bergdorf Goodman, Neiman Marcus, Saks Fifth Avenue, Bloomingdale’s, ShopBop, and Anthropologie in addition to over 500 specialty shops in america, Canada, Europe, and Asia,” the company shared on its website.
Shoshanah Fashions has not made a public statement about its Chapter 11 bankruptcy filing. The filing, however, came on the same day Saks Global filed for Chapter 11 bankruptcy.
Saks Global’s Saks Fifth Avenue and Neiman Marcus are key distribution partners for Shoshanna Fashions, and the brand is almost certainly owed money by its partner, according to data shared with TheStreet by Ragini Bhalla, Head of Brand and Spokesperson for Creditsafe.
“Saks Inc. had a persistent and troubling sample of paying distributors late in 2025,
pointing to sustained liquidity issues. Days Past Phrases (DBT) refers back to the
variety of days late (i.e., previous cost phrases) that an organization pays its payments. One of many
commonest indications that an organization is battling money stream is when its DBT is
considerably larger than different firms in the identical trade,” the research showed.
- Saks’ DBT hovered between 30 and 41 between January and December 2025, which was more than three times higher than the industry average DBT of approximately 9.
- Between June and September 2025, the company’s DBT rose consistently from 30 to 41 — a 37% increase in just three months.
- Toward the end of the year (October through December 2025), the company’s DBT was about 32 to 33. This means the company typically paid vendors more than a month late.
Saks payments put vendors into a cash crunch
“If a vendor and Saks agreed to Internet 90 cost phrases, meaning they won’t be paid for a single bill for no less than 4 months after fulfilling orders or finishing companies for Saks. Whereas some bigger distributors may need been capable of wait that lengthy to receives a commission, small and mid-sized distributors could not have had that luxurious and will have needed to make laborious monetary selections for their very own companies,” Bhalla shared.
Vendor payment timing is one of the most critical, and fragile, parts of the retail business model.
When retailers delay payments to suppliers while continuing to demand standard delivery schedules, vendors are forced to finance production themselves. That often means borrowing at high interest rates or stretching their own payables, increasing financial risk across the supply chain.
In today’s high-rate environment, those delays are especially damaging, turning what might once have been manageable short-term gaps into prolonged cash-flow crises.
Saks’ Chapter 11 bankruptcy had a ripple effect on its suppliers.
“Inside days, the publicity profile grew to become unavoidable. Any organisation that depends on leveraged retail companions, extends commerce credit score, underwrites retail danger, or funds stock now sits throughout the danger perimeter,” Lawyer Month-to-month reported.
Shoshanah Fashions, Inc. Chapter 11 Chapter details:
- Shoshanah Fashions, Inc. filed for Chapter 11 chapter safety in U.S. Chapter Courtroom on January 14, 2026.
- The case is listed as Case No. 26-10083 (Chapter 11), indicating a voluntary chapter submitting.
- The submitting is a part of a broader development of retail and attire sector bankruptcies in 2025-2026 that features different retailers (e.g., Joann and Saks International).
- As with many early Chapter 11 instances, detailed courtroom paperwork (e.g., schedules of belongings/liabilities, creditor lists, reorganization plan) haven’t but been publicly posted or extensively reported.
Supply: PacerMonitor
Saks International’s chapter will influence its distributors.
Shutterstock
Saks International suppliers could not receives a commission
As a result of Saks International intends to proceed operations, it has to achieve a cope with distributors about unpaid payments. It is doubtless that distributors will not obtain what their owed, in accordance with Bhalla.
“Given that 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. Ultimately, Saks’ failure to
address these challenges likely played a role in its bankruptcy filing,” she wrote.
Saks struggled to line up funding for its Chapter 11 submitting, in accordance with 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. The lion’s share, $1 billion, is debtor-in-possession financing that will be used to fund operations while the company is in Chapter 11 while an additional $500 million will be available to the company after it emerges from bankruptcy, ” the web site reported.
Even when distributors get partial funds, that course of could take months because the chapter works by means of the courtroom.
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Saks did make a plan final yr to pay late balances.
“On February 14, the newly formed Saks Global announced its plan to pay vendors past due balances in 12 monthly installments beginning in July,” JD Supra reported.
The chapter course of is just not sure by any earlier agreements.
About Shoshanah Fashions
- Based in 1998 by designer Shoshanna Lonstein Gruss in New York Metropolis.
- Model Focus: Elegant, female girls’s style, primarily clothes, eveningwear, and swimwear.
- Signature Model: Recognized for flattering silhouettes, daring colours, and distinctive particulars; emphasizes femininity and match.
- Retail Presence: Carried at high-end retailers similar to Saks Fifth Avenue, Bloomingdale’s, Neiman Marcus, and specialty boutiques in North America and internationally.
- Swimwear Innovation: Early adopter of lingerie-inspired sizing in swim separates, setting a development for extra personalised slot in swim style.
- Model Progress: Expanded from clothes and eveningwear to incorporate resort put on, swimwear, and seasonal collections, constructing a powerful loyal buyer base.
Supply: Shoshanna.com
Lonstein Gruss shared a few of her style course of with Trend Weekly in July.
“The creative process for each collection starts long before we’re in design meetings; it’s always kind of running in the background. Inspiration usually isn’t one big moment; it’s more a collection of little sparks. I might spot an old magazine ad with an unexpected color combo, or come across a piece of art that sticks with me. I build from there, starting with color and print. I gravitate toward certain things again and again. I know what I love,” she mentioned.
Lonstein has not commented publicly on the chapter submitting, and the model has not acknowledged it on its web site or social media feeds.
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