How ritzy retailer Saks Fifth Avenue is driving mom-and-pop cosmetics companies to brink of destruction

Ritzy retailer Saks Fifth Avenue is ripping off independent companies by not paying them for their products, the businesses claim.

Vendors say they are owed tens of thousands of dollars in some cases, after the department store failed to pay up for orders, the Wall Street Journal reported.

The tony brand did about $6 billion in sales last year, according to the WSJ.

Reports that Saks had been stiffing suppliers first emerged last year, around the time its parent company HBC was negotiating a $2.65 billion deal to buy rival Neiman Marcus.

Among those speaking out is Emiliano Shnitzer-Bartocci, who claims Saks Off Fifth, the store's discount brand, owes his company CTE Watch $40,000.

Independent companies including Luna Bronze, founded by Maddy Balderson (pictured), claim that they are being ripped off by ritzy retailer Saks Fifth Avenue

'You have the money to do an acquisition, but you can't pay the people that you owe?' Shnitzer-Bartocci told the WSJ.

'They sold the merchandise we've given them. They've made money on it, and yet they still haven't paid us back.'

Saks Fifth Avenue signed a deal to buy upscale rival Neiman Marcus Group, which owns department stores Neiman Marcus and Bergdorf Goodman, with online behemoth Amazon holding a minority stake.

The new entity will be called Saks Global, creating a luxury powerhouse at a time when sales in the sector have been softening.

Other small businesses who say they are in a similar position include self-tanning entrepreneur Maddy Balderson, who claims Saks owed her company Luna Bronze $9,000.

She says she had filled five orders for Saks and received a sixth before deciding to cut the retail giant off.

Vendors say they are owed tens of thousands of dollars in some cases, after the department store failed to pay up for orders

Balderson says she bombarded Saks with emails, to no avail. In March she was told her products would no longer be stocked by the retailer.

Skincare company Terre de Mars alleges Saks owes it more than $8,000. Founder Pouland Djmali was stunned when he initially received a check for just $74, despite awaiting payment for 19 orders

On Wednesday, he received another for just over $5,000, but has been told his products will no longer be stocked at Saks.

Skincare company Terre de Mars alleges Saks owes them more than $8,000, according to founder Pouland Djmali

Meanwhile, the shower head company Jolie Skin says it is awaiting a $15,000 payment.

'There is no amount of credibility in the world that offsets not being paid,' said Jolie Skin CEO Babenzien. 'Brands are not banks for retailers, which is how many of them have treated brands for years.' 

Some suppliers have even been forced to take legal action to recoup their earnings.

Jewelry brand Phillips House was owed more than $100,000 last year and managed to obtain payment after filing a lawsuit alleging Saks had breached its contract by failing to pay.

But for smaller suppliers, missed payments can threaten survival.  

'We watch every dime,' skincare company owner Lisa Strain said. 'We can't absorb hits like this.'

Reports that Saks had been stiffing suppliers first emerged last year, around the time its parent company HBC was negotiating a $2.65 billion deal to buy rival Neiman Marcus 

Emiliano Shnitzer-Bartocci claims his company CTE Watch is owed tens of thousands of dollars by Saks Off Fifth, the brand's discount outlet

Strain said Saks owed her company, Kari Gran Skin, $1,400 before finally paying up last month. 

Most retailers aim to pay suppliers within 60 days, according to experts.

A Saks spokeswoman told the WSJ that the company is committed to fulfilling its obligations to its vendors.

'Any delayed payments are due to navigating our business through the current challenging macroeconomic environment,' the spokeswoman said. 

She added that no money designated for vendors would be used in the Neiman Marcus acquisition.