The Powers That Be: Daily The Great Saks Collapse & GQ’s New Era
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Jan 9, 2026 Lauren Sherman, a fashion journalist and author of Line Sheet, dives into Saks Global's imminent bankruptcy, detailing the heavy debt from its formation and the structural decline of department stores. She discusses the fallout for brands and inventory, the challenges of driving discovery in retail, and how consolidation was the only path forward. The conversation shifts to Will Welch’s exit from GQ, examining his legacy in reshaping the magazine and who might fill his shoes. It's a captivating look at the evolving landscape of fashion and retail.
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Department Store Model Is Fundamentally Broken
- Department stores' business model has been broken since the 1970s and consolidation was inevitable.
- Saks Global's heavy debt and declining luxury sales made bankruptcy predictable within months of the merger.
Inventory Shortages Raise Liquidation Risk
- Saks Global lacks inventory because brands paused shipments and diverted stock elsewhere.
- Without inventory or debtor-in-possession funding, a Chapter 7 liquidation becomes a real risk.
Move Excess Inventory Quickly
- Brands should redirect excess inventory to other retailers or platforms to recoup revenue.
- Expect off-price channels and sample sales to absorb leftover goods and protect smaller brands.