The news in the rag trade, someone is in but more likely who is out, fashion business models dependent on low unsavoury production practices.
The creative head musical chairs game is still playing out.
This time Dario Vitale got the axe after designing only one well received if not a bit shocking, collection at Versace. The former Miu Miu design director parted ways with the Glam Milan fashion house following Prada Group closing its 1.4 billion takeover. While some were surprised, rumors were whispered around Via Gesu the new management heads were not fond of Vitale’s eight-month reign. After debuting in September with colorful retro 90’s looks Versace looked to change course as a more accessible luxury label. A new head has not been named of Versace.
Brioni is a curious brand. The Kering Group subsidiary lacks the top-tier big splash of Gucci, YSL and Balenciaga. The eighty-year-old menswear label is known for its tailored pieces, not pushing the boundaries rather staying in a more traditional with muted colors and rich fabrics. As Kering continues to reset in all directions, no one is safe in the fashion conglomerate. Creative head Norbert Stumpfl stepped down as head after seven years. The Rome based house gave no the usual explanation with gratitude, etc. Mr.Stimpfl will be missed by this writer. At every presentation he walked over to greet me and ask my opinion. Rare humility in a business that loves to parade its feathers.
The ongoing scandal of luxury bags produced in Chinese owned sweatshops in Italy continue. Those designer bags are in an eco-system of exploitation linked to the Mafia. This time Prada, Gucci and Dolce Gabbana came under the spot light. Prosecutors found the companies found workers earning 3.50 euros an hour while sleeping next to the machines. Although the luxury brands are not under formal investigation, questions are being asked.
Staying on the cheap labor high price point subject, another Italian Brand finds itself in legal crosshairs. The same story, outsourced the production of $1000 leather products to be made for 2.75 an hour while stating “Made in Italy”. Prosecutors are asking for a six month ban on advertising. Is this too harsh!
The Italian Fashion Brand System, once regarding for quality, is taking a hit while those in charge appear lost on how to solve the problem.
Meanwhile Stateside, Saks Fifth Avenue, the luxury retailer that recently merged with Neiman Marcus finds itself on the wrong end of a law suit. A fashion vendor accused the 42-location chain of not paying pas invoices. It is no secret the retailer has been holding on to cash as it struggles to formulate a plan to profitability. However, patience has worn thin with companies complaining of the backlog of over-due notices while Saks wants to do business as usual. Suppliers have stopped shipments. This first lawsuit could open the door to more further tipping the once storied retailer to bankruptcy.
Puma, the footwear brand is up for sale. Chinese investors are circling. As a personal favorite it is hard to understand why the German firm fell out of favor with shoppers. There were many missteps with trends such as the vintage design trend. Puma also suffered from a glut of unsold shoes leading to discounting, further diminishing the bottom line. The 77-year-old company fired 13% of its workforce is a stop gap measure to stem losses. But this won’t solve the underlying problem. Why are young people not buying Puma?
I had to see it to believe it but Zara does have a coat for 600 euros. Stay tuned for that story.
2025 is almost over.