New York City, Saks Inc. will give $48.2 million to vendors after improperly collecting markdowns from them over an eight year period. The company will return $34.2 million that the Saks Fifth Avenue unit collected. That is more than the $20 million disclosed in May. The company will also pay $14 million in interest.
Saks conducted an internal investigation, which found that one employee gave vendors false information in order to get markdown money. The company said it would discipline the employee but did not name the individual.
Saks asked three senior executives to resign in May over the accusations. The company is currently under investigation by the Securities and Exchange Commission (SEC) and the U.S. Attorney for the Southern District of New York.