6 Dead Methods Of 6 Fashion Brands

2016, global

The industry is in the new round of brand shuffling, which can be seen as a combination of wind and rain.

On the one hand, many of them are familiar to us over the past decade or so.

Is facing the pressure of pformation and even decline, on the other hand is the change of format.

Cards are generally facing development difficulties. In the past few years, fast fashion brands have slowed down.

At the end of the year, all kinds of "inventory" of these phenomena flooded the media.

At this critical moment, it is better to make a list of brand "killed" for those who have made great progress in this year's development. After all, the success of every brand can hardly be duplicated, but the lessons of failure can not only alert commercial real estate people, but also let everyone learn from them so as not to repeat the same mistakes.

Comprehensive domestic and foreign media publicity, summed up the 6 fashion brands in 2016 6 kinds of dead laws for reference:

In November 2016, 9 months after it was temporarily out of bankruptcy in February, American Apparel (AA) filed for bankruptcy again and made a preliminary agreement with a Canadian clothing company to sell its brand and other assets for 66 million dollars.

This price is somewhat sob. At the peak of 10 years ago, AA, located in Losangeles, California, was one of the largest clothing manufacturers in North America with a market value of more than 500 million dollars.

It was founded in 1989 by Canadians Dov Charney. At the beginning, it only had wholesale sales business and produced commemorative t-shirts for many bands.

After 2003, it entered the retail industry.

In the 2005 year of the year, sales growth of $440% to $210 million, thanks to the marketing and positioning of retro costume, was one of the fastest growing companies in the year.

AA insists on doing the local clothing brand in the United States, from raw material production and processing, to design, production, distribution, distribution, retail, vertical integration, has always insisted on "Made in the USA", thus establishing its brand status and image in the American mind.

Dov Charney this person's thinking is very jumps, the life style is very unconventional, even is called the lunatic.

He is a stubborn "appearance Association" member, and the ugly store manager will be expelled.

Even accused of sexual harassment, an employee posted a naked photo of a female employee who had prosecuted him on the Internet.

In marketing, AA has also gone through the sexy marketing route of super scale. Print advertisements are never overly decorated and real, but because they are extremely provocative and full of sexual hints, even the secrets of Vitoria must be forced to bow down.

This sexy marketing really played an important role in the early growth of AA, but it didn't last long. Now, consumers are no longer buying sexy marketing for AA.

AA's online sales website grew steadily from $13 million 300 thousand to $43 million 100 thousand from 2006 to 2011.

But a series of negative events, AA company's image in the minds of young consumers has fallen sharply. The sexy marketing that has already been reduced has become less competitive. A large number of consumers are flocking to H&M, Zara and other fast fashion retailers.

On the contrary, their competitors in the fast fashion field, whose production and processing are overseas, cost much lower than AA, and the final retail price is also cheaper. The overall brand image is more consistent with the positioning of the customer group, youth, positive and upward, diversified marketing means, stronger customer adaptability and stronger viability.

Dov Charney tried to partner with hedge fund companies to increase his holdings of AA to 43%, but the creditors were reluctant to cooperate with him, and failed. The company was eventually sold to Gildan, the Canadian sports apparel group, for 66 million dollars.

Gildan acquired only AA's brand and part of its manufacturing, distribution and warehousing business. AA's stores are not included. Now AA is pulling out of overseas markets, closing stores and layoffs.

A e ropostale: death from shareholders

AA, the two time for bankruptcy, is unfortunate, but it is not a special case.

Incomplete statistics, this year, in the case of brutal competition and sales stagnation, there are at least 8 young clothing retailers in the United States who applied for bankruptcy. A e ropostale is another year's "Star".

Not long ago, although A e ropostale Inc. (NYSE:AROPQ) was at the expense of bankruptcy and litigation, it avoided falling into the hands of former shareholders and Sycamore Partners Management LLC of private equity fund, but in the end, the US youth dress Brand Company still failed to escape the conclusion of private placement.

Around 2009, A e ropostale is one of the most popular brands among American teenagers.

Later, under the impact of fast fashion, A e ropostale was gradually abandoned.

Compared with its competitors such as A&F, American Eagle, and so on, it has done worse in managing inventory and pushing new money to cater to the market trend.

The new season is different from the previous one, and there is no breakthrough.

For example, Simeon Siegel, an analyst at Nomura Securities, said: "just taking the low price route is easy to catch up with competitors."

Filed for bankruptcy protection in May 2016.

The reason why A AI ropostale is poorly managed may have a lot to do with its corporate governance structure. Specifically, there is a lot of dispute between A ropostale Inc. and former shareholder Sycamore Partners Management LLC.

A e ropostale Inc. has previously accused Stefan Kaluzny, managing director of Sycamore Partners Management LLC, that its intention is to destroy the finances of A ropostale ropostale, so that he can buy it when he fails to restructure the company, while supplier is a chess player.

The high price of MGF Sourcing US LLC in 2015 resulted in an additional payment of $25 million for the A ropostale group.

Stefan Kaluzny explains that this is to beautify the accounts of MGF Sourcing US LLC, and then A e ropostale Inc. also burst MGF Sourcing MGF, to tighten the terms of payment and stop the delivery of goods, eventually pushing the retailer into bankruptcy.

Sycamore Partners Management LLC has consistently denied accusations of A ropostale Inc..

According to the world clothing and shoe net, private equity fund Versa Capital Management LLC has already paid a large amount of inventory fees and 500 store rents for A e ropostale Inc., in exchange for the acquisition of A ropostale Inc..

Versa Capital is a private equity fund focused on the acquisition of non-performing assets.

But after the takeover plan was released, A e ropostale Inc. and former shareholder Sycamore Partners Management LLC were again in dispute.

In the tug of war of internal power struggles, A e ropostale Inc. slid into the abyss.

In the May 4th bankruptcy documents, A e ropostale Inc. said it had total assets of $354 million 400 thousand and liabilities amounted to $390 million.

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Nasty Gal: failure of Internet brand landing

Nasty Gal, headquartered in Losangeles, USA, is another fashion brand for young Americans in 2016.

Nasty Gal was founded in 2006, and founder Sophia Amoruso is a dropout of Losangeles community college. He started from a small seller of eBay, and gradually became an excellent "Amoy" brand in the United States. The total amount of financing was up to US $65 million. The main investor was Index Venture who had invested in Facebook and operated by Ron Johnson, a former retail executive of Apple Corp.

As the first generation Internet fashion brand, Nasty Gal is dedicated to creating "avant-garde" clothes for girls who want to be bad, but not too special, and fashion clothes to cater for the trend of "Z generation" and "millennial generation".

Sold to 180 countries around the world, it has 400 fans in social media, and sales in 2015 are estimated to be about 300 million dollars.

According to the world clothing and shoe net, the company's revenue was healthy before 2014, and then began to go bad.

Nasty Gal has been performing poorly in the two entities' retail outlets, especially the 6500 square feet of second stores opened in Santa Monica, California (Santa Monica) in March 2015.

The new manager Waterson's strategy has changed rapidly, ordering the buyer team to search for higher price brands to increase the profit margin of the company, but this has reduced the customer base and the sales volume has come down.

Filed for bankruptcy protection in November 2016.

In the ten years since its establishment, it has applied for bankruptcy protection unexpectedly.

This further proves that the consumer industry is a long-distance running process.

Even if the founders have become the idols of teenagers, the brand has a worldwide reputation, and its sales reach hundreds of millions of dollars. With so many funds and big coffee support, it does not mean that the future will be smooth sailing.

Sports Authority: challenge of sports collection shop

In March this year, Sports Authority, a sporting goods store in the United States, declared bankruptcy protection.

You may have seen a collection of sports goods similar to Sports Authority, on the roadside. In the US, their popularity seems to be heading for a downturn.

About ten years ago, Sports Authority and its rival, another sporting goods store Dick 's, were equal, and their annual revenue was flat at 30 billion US dollars.

But over the years, Dick s has been far ahead of its excellent display and sporting technology displayed in physical stores (which is very important in sports).

Wall Street analysts predict that Dick 's sales will reach $7 billion 300 million in 2015, while Sports Authority will remain at around us $3 billion.

In addition to the old rival Dick 's, Sports Authority has faced more complex competition in recent years.

More and more traditional retailers such as Target, Kohl 's, Gap, WAL-MART and WAL-MART are eating away from their comfortable sports equipment market. When this category has developed from a small crowd to a lifestyle, the original business model has not been able to keep up with the diversified sporting goods market, and the customers of Sports Authority have been largely lost.

Keeping up with the old physical stores, relying on the old stock that has been hoarded on shelves, can not save customers who left. Sports Authority filed for bankruptcy protection. Its CEO Michael E. Foss said in a statement: "we intend to make use of this opportunity to simplify our organization, strengthen our business operations and improve our financial position."

The chain store, which has 463 stores, will close its 140 stores and be agreed to borrow from some senior lenders such as Bank of America, Welsh bank, J.P. chase, Dezhou Pacific Group and so on for $595 million in bankruptcy financing because of its heavy debts.

After clearing the balance sheet, Sports Authority urgently needs to introduce new investment and optimize its suppliers list to eliminate some less popular brands.

But before that, the most important thing is to use the money that has been bankrupted to pay off debts: so far, Sports Authority has owed Nike $47 million 900 thousand, Asics $2320 million, Under Armour $23 million 200 thousand.

Laur e l: "German fan" broken by capital chain

This year, Germany's high-end women's clothing brand Laur L's debt restructuring did not go smoothly. The first creditors' voting meeting did not make a decision because of the insufficient number of participants. The second meeting, originally scheduled for November 14th, was cancelled, which eventually led to the bankruptcy of Laur L.

Laur, founded in 1978 in Munich, once belonged to Escada, one of the three largest luxury group in Germany and Hugo Boss, Joop, has landed in more than 30 countries around the world, and has more than 1000 business sites around the world. It has become one of the top more than 1000 luxury companies in the world.

In 1995, Elizabeth, Elisabeth Schwaiger, served as his design director, integrating German blood into contemporary art, highlighting the unique taste of the wearer, thus setting up a unique brand image, enjoying a good reputation and being widely respected in Europe, and also favored by many stars at home and abroad.

Since its management buyout in 2004, Laur L has been operating as an independent company.

According to the world clothing and shoe net, as of April 30, 2016, from 2015 to 2016 fiscal year, Laur L's operating loss reached 2 million 400 thousand euros, or about 2 million 700 thousand US dollars, and sales fell 10.5% to 36 million 500 thousand euros, or about 40 million 500 thousand US dollars.

In September of last year, the company of Shenzhen, China, acquired the right to design, use and ownership of Laur L in mainland China, earning a net profit of 1 million 100 thousand euros.

Under the pressure of financial pressure for a long time, Laur l l announced the purchase agreement with Shenzhen orient fashion Asset Management Co., Ltd. in late June this year.

However, the agreement requires creditors of Laur l to abandon interest on bonds before September 1, 2016 and to postpone payment of interest from November 16, 2016 to June 30, 2017. In return, creditors will receive 22% of the face value of bonds.

Today, the restructuring has failed.

Laur L is not the only German fashion brand that needs external capital to maintain corporate restructuring or resist early debt pressure.

The German independent designer Strenesse was bought by Holland private equity fund Dutch Holding in August this year, and again sought investors in September.

Not only high-end women's clothing has been hit, but the market report in late October shows that the German outdoor brand Jack Wolfskin is also facing a serious financial crisis.

Xi De Long: unable to adapt to consumption upgrade

In August 5, 2016, the intermediate people's Court of Quanzhou formally accepted the case of the bankruptcy reorganization of the Sino Dragon (China) Limited company. It was submitted to the Jinjiang court for trial in August 23rd after being submitted to the provincial high court for approval.

The company's bankruptcy reorganization has entered a substantive stage, and Tmall and Jingdong flagship stores have been offline.

Headlong is headquartered in Jinjiang, China, founded in 1992. It is a group company which integrates R & D, design, production and marketing of clothing, shoes and accessories for men and women.

The product features clothing, shoes, accessories and so on.

The group has mainly adopted the franchise distribution mode, which has already established a huge supply chain management system and distribution and retail network in China. By the end of 2013, its retail network covered 28 provinces and cities nationwide, with more than thousands of retail outlets.

In October 30, 2009, he successfully listed on Nasdaq, becoming China's first sports consumer brand to enter the US capital market.

In 2013, Xi Delun delisted from the United States, and its performance declined sharply thereafter, but its pformation was slow.

In August 5, 2016, the Quanzhou intermediate people's court, according to the application of Hengyue textile and Garment Co., Ltd. of Zhongshan, decided to accept the bankruptcy liquidation case of the king banner (China) textile and apparel Co., Ltd.

Flag King (China) textile and apparel Co., Ltd. was founded in 1988, specializing in jeans as the core product of casual clothing series.

In 2005, the brand was awarded the title of "China's 500 most valuable brand".

Some netizens even included it in the ten largest Cowboy brand in the world.

Many Chinese clothing brands that were born in Fujian and are popular all over the world are having a hard time nowadays.

Even old costumes are now being reorganized, the founders retire, and children take over.

In fact, it reflects the problem that the garment industry must face now: how to avoid the risks brought by social pformation as a labor-intensive industry that is most sensitive to cost changes.

The vitality and development prospects of a brand depend on its three factors: price, quality and design.

The change of national population structure and the demand for consumption upgrading will make the market quickly out of tune.

For China's clothing industry, scale does not mean quality, and the closure of brand enterprises is also bound to lead to the deterioration of the retail environment and the disruption of capital chain to other opportunities.

The current consumption environment needs more original products and brand operators who truly understand the way users live, rather than traditional manufacturers.

More interesting reports, please pay attention to the world clothing shoes and hats net.