Fashion People Inside the Saks Saga
Jan 9, 2026
Bill Cohan, a finance journalist and author known for his expertise on corporate restructurings, joins Lauren to dissect the looming Chapter 11 bankruptcy of Saks Global. They delve into the heavy debt financing that fueled its acquisition, the early warning signs of financial distress, and the implications for the wider fashion industry. Cohan shares insights on potential asset sales, restructuring strategies, and the future of luxury brands like Bergdorf Goodman. Their conversation shines a light on the challenges facing the department store landscape.
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Strategy Crushed By Excessive Leverage
- The Saks-Neiman merger made strategic sense but collapsed under aggressive leverage and debt structure.
- Heavy junk-bond financing turned a reasonable strategy into a fragile, high-risk capital stack.
Payables And Bond Moves Signal Distress
- Early signs like stretching payables are major red flags for distress in retail.
- Bonds trading down and yields spiking signaled the market expected default or restructuring.
Department Store Model Is Largely Obsolete
- Department stores lost scale relevance as specialty and DTC brands rose over decades.
- Many executives cling to the wholesale/department model for marketing, not distribution.
