A spate of Chapter 11 filings over the past two years by sizable retailers—including QVC Group, Saks Global, J.C. Penny, Eddie Bauer, Claire’s, Sleep Number, West Marine, and Joann Fabrics—tells a story that retail analysts say all stores should heed: Consumers and their shopping habits have changed, so keep up or face extinction.

“The disruption we’ve seen in the market, starting before COVID, will continue. There’s no new normal, and I think we were all waiting for normal to set in,” says Glenn McMahon, who was a senior executive for several high-end fashion brands and is now managing partner of MAC McMahon Advisory Consulting.

What does this mean for the jewelry industry? Watch closely as retailers such as QVC and Saks try to figure out post-bankruptcy how to connect with Gen Z, rebuild trust with vendors, and persuade consumers affected by inflation and economic uncertainty to part with their hard-earned dollars.

For jewelry brands caught in the QVC and Saks bankruptcies, there’s been some good news. QVC last week announced it received court approval of its reorganization plan. And Saks—now known as Exemplar Luxury Group—came out of bankruptcy in June.

McMahon looks at the QVC and Saks bankruptcies as two sides of the same coin. Both companies had a lot of time to assess what was happening to them and react. QVC saw its sales slipping in the face of social media commerce. Saks had been struggling for years, took on heavy debt when it purchased Neiman Marcus in 2024, and then started making late payments to vendors.

“I have to say congratulations to QVC on its plan of reorganization—they finally figured it out. But they should have figured it out 10 years ago. Their business has been horrible,” McMahon says. “TikTok, Instagram, and Pinterest all have been beating them at their game, and it was shameful that their management didn’t do anything about it.”

The question now for QVC is whether it can convince younger consumers—namely, Gen Z and Gen Alpha—that shopping on its channel or its social media is cool, McMahon says. Is it too little, too late?

Maybe, maybe not, says Erin Edelman, who leads the restructuring, insolvency and bankruptcy practice at national law firm Armstrong Teasdale. The key to QVC’s success could be its repayment plan to vendors. According to the reorganization plan, the company “committed to pay all third-party general unsecured claims, including vendors, in full, while also reducing the overall debt load from $6.6 billion to $1.325 billion, which…will set up the reorganized entities for long-term success,” Edelman explains.

In its announcement last week, QVC said it will seek to become “a leader in live social shopping across social platforms, streaming apps, e-commerce sites, stores, and TV channels.”

This shift is important, McMahon says, but consumers want clear, strong communication of a company’s strategy, culture, and value proposition.

“The proof will be in its execution,” McMahon says. “What does QVC stand for as a brand? That makes it hard to win shoppers back. QVC did a great job in bankruptcy so far, but that’s the easy part. The hard part is what it looks like as a company going forward.”

McMahon feels Exemplar Luxury Group has a better chance at success. Geoffroy van Raemdonck, who became CEO of Saks Global during the bankruptcy, not only has turnaround experience, he appears to have won back vendors’ confidence in the retailer, according to McMahon. Consumers may be harder to woo, but at least van Raemdonck is the right manager at the right time, McMahon says.

“There’s no guarantee, and Exemplar’s plan is aggressive. But van Raemdonck has been there—he’s better prepared to shepherd them through,” McMahon says.

“Saks getting through is a good thing. QVC finally figuring it out is good news. These are both good developments. But neither business going forward will be easy,” he says.

(Photo courtesy of QVC Group)

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