Recession is a Stumbling Block for Young Designers
Is the age of young, upcoming fashion designers coming to an end?
For years, the fashion industry has outlets to nurture young talent and many young designers got their big chance at New York Fashion Week. But the recession is changing all that, as backers are less interested in designers without a proven track record of sales. And young fashion labels -- less than a decade old -- are struggling too, even when they get great reviews.
Of the more than 200 fashion labels that will begin showing their fall collections in New York next week, at least half came into existence only in the last decade. A full quarter of them are less than five years old. This season alone, during the worst economic environment in decades, no fewer than 10 new companies are vying for fashion’s spotlight.
The age of the young designer, however, may be coming to an end.
As stores reduce orders by 20 percent or more for fall, the toll on small fashion businesses, many without independent financial backing, is likely to be severe. In the last month, two promising designers lost the support of their investors and face uncertain futures: Peter Som, who makes ladylike sportswear; and the Obedient Sons and Daughters collections, quirky takes on tailored clothes made by the husband-and-wife team Swaim and Christina Hutson.
And among designers, there is fear that the fallout will be far worse after the shows, once orders for fall clothes are confirmed. The more stores that close, the more designers will follow.
"To be honest, we're writing this whole year off," said Andrew Buckler, the designer of a seven-year-old collection called Buckler. "We're just trying to survive."
Like most of those companies started in the last decade, Buckler is small, with sales less than $10 million. But the line, originally based on jeans, was growing; and two years ago, Mr. Buckler sold a minority of his business to a Turkish manufacturing company, Hey Group. The investment enabled him to open four stores, including two in Manhattan, and to have runway shows for a collection that looks like weekend wear for James Bond.
Six months ago, the Hey company said it would pull back its financing.
"We knew things were getting really tough out there," Mr. Buckler said. "But it's still a bitter pill to swallow."
Orders are down on expensive designer clothes. Large operations such as Liz Clairborne go into restructuring and cost-cutting mode to survive a downturn such as this. But small labels that are barely making ends meet are in big trouble when consumers stop spending abruptly. Small labels are losing their investors and that can be disastrous.
