Saks Bankruptcy: What It Means for Vendors and Luxury Brands

Perplexity AI is a pioneering software company founded in 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski. It specializes in developing a sophisticated web search engine that leverages large language models to provide direct, context-aware answers to user queries. This innovative approach positions Perplexity as an "answer engine," distinct from traditional search engines by focusing on conversational responses supported by real-time web data and source citations[1][4]. **History and Key Achievements:** Perplexity has quickly gained recognition for its cutting-edge technology, integrating multiple large language models, including GPT-4 and proprietary models. This allows users to select the best model for their needs, enhancing research quality and scope[3]. The company has made significant strides in offering real-time coverage for live events, such as sports and elections, by integrating data feeds and structured information[5]. **Current Status:** As of July 2025, Perplexity AI was valued at $18 billion, reflecting its rapid growth and potential in the AI sector[1]. Despite legal challenges related to content use and copyright infringement, Perplexity continues to innovate, expanding its capabilities through strategic acquisitions, such as the integration of Carbon to connect AI systems with external data sources[5]. **Notable Aspects:** Perplexity's platform is notable for its hybrid approach, combining the strengths of AI chatbots and search engines. It offers a personalized search experience with features like document importation and image generation, making it a valuable tool for research and content creation[5]. However, the company faces increasing competition from tech giants like Google and Microsoft, which are also developing AI-powered search tools[4]. Despite these challenges, Perplexity remains a leader in the AI search space, continuously evolving to meet user needs and stay ahead in the global AI race[3].

Saks Fifth Avenue—colloquially known as Saks—is a storied American luxury department store chain, recognized globally for its upscale merchandise, innovative retail strategies, and enduring influence on the fashion industry[1][2]. Today, Saks operates both its flagship luxury stores and the off-price Saks Off 5th chain, catering to a broad range of customers seeking designer apparel, accessories, beauty products, and home goods[1][2]. The brand is now part of Saks Global, a newly formed entity that also includes sister brands Bergdorf Goodman and Neiman Marcus, reflecting its continued evolution in the competitive luxury retail landscape[1]. ## History Saks traces its origins to 1867, when Andrew Saks opened the first store in Washington, D.C.[1][2]. The business expanded to New York City’s Herald Square in 1902, and in 1924, the iconic flagship store debuted on Fifth Avenue—a landmark that would become synonymous with luxury shopping[1][3]. The brand’s growth accelerated after merging with Gimbels, a major department store group, allowing Saks to expand nationally and establish itself as a destination for the affluent[1][3]. Over the decades, Saks pioneered concepts such as in-store boutiques, custom tailoring, and resort stores, and was an early adopter of direct mail sales with its Folio catalog in 1970[3][4]. ## Key Achievements Saks has been a trailblazer in luxury retail, introducing the first resort store in Palm Beach, Florida, and expanding into major markets like Chicago, Miami Beach, and Beverly Hills by the late 1930s[3][4]. The creation of Saks Off 5th in 1990 marked a strategic move into the off-price segment, broadening the brand’s reach[1][4]. Saks was also an early entrant into e-commerce, launching Saks.com to complement