Confessions of an ex-Saks employee caught in the fallout of the company’s bankruptcy filing

The employee once worked at the Saks.com photo studio in Pennsylvania. In December, this employee — along with more than a dozen coworkers — was laid off and given a three-month severance package. However, a little more than a month later, they were told via email that the bankruptcy proceedings meant that Saks Global needed to suspend all severance payments.

The email — which Modern Retail viewed — was dated Jan. 22 and mentioned Stretto, a services partner specializing in bankruptcy administration and corporate restructuring. The email said that “under U.S. bankruptcy law, Saks Global is legally required to suspend certain payments on account of obligations incurred prior to January 13,” the date of the bankruptcy. The email continued, “Amounts owed under your severance agreement will be addressed as part of the Chapter 11 process and you may file a claim for unpaid severance payments.”

The former employee, who is owed more than half of their severance, shared that they are now feeling “panicked” about having to pay upcoming bills. They’re now in a state of limbo, as it could take months for Saks Global to emerge from the bankruptcy proceedings.

In a statement to Modern Retail, Saks Global said, “Due to legal requirements that apply during the Chapter 11 process, Saks Global is limited in the payments we can make for obligations that arose prior to our filing date, including severance payments under agreements entered into before January 13, 2026. As a result, we were required under the U.S. bankruptcy law to suspend all severance payments owed to former employees. We recognize and value the contributions of our former team members. This action is not a reflection of their dedication to Saks Global, but a legal requirement.”

Below is an interview with the former employee, which has been edited for length and clarity.

What did you do at Saks Global?

“I worked at the Saks.com photo studio in Pennsylvania. We used the Hudson’s Bay Company warehouse, and that’s where we took photos for the website. We shot ready-to-wear [items] and stuff that’s called stills. Think: shoes, handbags and accessories, like scarves and jewelry.”

Before you were laid off, were there rumors that there was something amiss?

“There were no rumors that a layoff was coming, but the mood in the studio was really bad. There were certain associates always sitting behind closed doors. The director of the studio was also trying to implement a new tool to help photographers and studios, and when we’d complain that the tool was not a good fit for us, our concerns would go unheard.

We did hear from vendors when they couldn’t get ahold of people on the finance team [for payments]. We were talking to those same vendors, and they’d say, ‘We’re not sending you samples [to photograph] anymore, because you [Saks Global] owe us so much money.’ It was kind of like being on the front lines of the bankruptcy. When I first started there, we were so incredibly busy. We had so many samples coming in all the time. We were so backed up and constantly photographing stuff. By the time I left, sometimes we’d only get a couple things in during the week.”

How do you think Saks Global handled the layoffs?

“I have gone through layoffs previously at jobs, and for one of them, I was told, ‘We’re getting rid of your job and combining it with another job, but we’re giving you three months’ notice.’ It gave me time to look for another job and figure out what I wanted to do. At Saks, I didn’t get that. I was at Saks for three years, and every time they had a layoff, I do not think they handled it well. There were layoffs in the studio in 2024, and I remember that people got one hour to pack up their things. They were escorted out by security.

When I got laid off, it was over Zoom, because it was a snow day. It felt very dehumanizing. Usually, top management is in the room with you. After I got off Zoom, I was locked out of my work computer. I couldn’t access my emails or my Slack, and I had some personal files on my laptop, as well. They did not tell us that we would be blocked immediately.”

Saks Global sent Modern Retail the following statement, concerning this point: “As part of our established protocols, access to company systems, including email and internal platforms, is discontinued at the time of an employee’s termination. Additionally, as outlined in our employee policies, employees must return all company property, including computers, at the time of their separation from the company. These practices are designed to protect Saks Global’s internal information, as well as that of our partners and customers.”

What went through your mind when you learned that the bankruptcy proceedings would affect your severance payments?

“Panic. Right now, my unemployment benefits are all messed up. I have no idea what to do, because now it’s like, ‘Well, you might get the money, but you might not.’ I have no Medicaid, I have no health insurance, and I have chronic health conditions. They gave us less than 24 hours’ notice that our severance was getting taken away, and I had a car payment due the next day. People were living off of these severance payments. A lot of the people who were laid off were photographers and had side businesses. We were messaging each other, like, ‘Hey, did you get this email?’ A lot of us were panicking.”

How much money are you still waiting on? Did you file a claim?

“I’m still owed the majority of my severance. The claims process was a little confusing. I called Stretto, and they did not answer when I called, but they did [call me back and] leave a message, saying, ‘Hey, if you need help filling [the form] out, we suggest getting a lawyer.’ I can’t afford a lawyer. I’m not like Chanel or LVMH. We already didn’t get paid a lot of money, because the photo studio was in a very economically depressed area in the coal region of Pennsylvania. But I did end up filing a claim, because they did owe me money.”

What’s the state of your job search now?

“I’m looking for a job, but it’s been really difficult. Every time I open LinkedIn, it’s ‘Saks this,’ and ‘Saks that.’ And, with all of the news about Saks, I can’t tell if having Saks on my resume looks good or bad.”

What would you like to see from Saks Global going forward?

“I want them to stop making risky business decisions. I have no idea why they bought Neiman Marcus when they already owed so much money to vendors.”