Cole Haan
Cole Haan, a chic shoe brand that found itself under threat of doom, has not gone the way of Nine West. It operated over 70 of its own worldwide locations. Its new owners, private equity firm Apax Partners Worldwide LLP, have taken the company in a new direction.
Apax Partners purchased Cole Haan from sportswear giant Nike in 2012 for $570 million. Cole Haan, known for its dressy stylish look, has navigated its product toward premium, comfy casual shoes like sneakers and other lifestyle footwear. While some customers do not like the shift, it seems to keep the brand afloat.
Pier 1 Imports
In 2018 the niche-import big-box retailer of unique home goods announced it would close 25 stores. Pier 1 then brought in new CEO Cheryl Bachelder by the 2018 fourth quarter and said goodbye to former CEO Alasdair James. Noting, at the time, that the store is missing on style, value, and selection for their shoppers, Bachelder added, now it’s all about “taking the bold actions needed to restore the health and promise of the business.”
Moody’s, a leading investment analyst firm, however, altered its Pier 1 outlook to “negative” once Bachelder took the helm. On the other hand, Moody’s recognized the company’s relatively light debt load but then worried about the $251 million worth of debt that was left. If Pier 1 is going to turn around, it better be soon!
Victoria’s Secret
According to Forbes, Victoria’s Secret has lost its touch. And, try as it may regain it, the financial numbers are not adding up. The store hasn’t seen a significant gain since 2015 and has been in a morbid decline since 2018. Victoria’s Secret operates under parent-company L Brands. Together with Bath & Body Works and PINK, L Brands, headquartered in Columbus, Ohio, sells women’s apparel exclusively. The company premiered with Victoria’s Secret in 1977.
This happened when Roy Raymond, after becoming frustrated with the limited lingerie options at department stores while shopping for his wife, decided to open a “Victorian-boudoir” themed lingerie store in Palo Alto. He named his new lingerie alternative Victoria’s Secret. It became a worldwide sensation known for fashioning a chic club of the world’s top supermodels. The closure of 30 stores in 2018 was dismal news. 2019 almost doubles it.
Kiko USA
Kiko is an Italian makeup and skincare company that operates Kiko USA under its Kiko Milano brand. Out of its 28 U.S. retail locations, 24 went away. Kiko is yet another victim of the 2018 Retail Apocalypse. The brand that looks for a niche between pricey, high-end makeup products and drug store cheapies dates its woes back to 2016 when a crisis in liquidity hit its bottom line.
Sales took a dive. It all came to a head in January 2018 when it filed for Chapter 11 bankruptcy protection. Closing its retail locations saves $7.1 million a year. Also, part of its post-bankruptcy playbook is teaming up with Amazon Prime and growing Kiko USA’s e-commerce sales.
DKNY
Donna Karan New York (DKNY) created her brand after serving as head designer at Anne Klein for many years. The company that owned Anne Klein allowed Karan and her husband the opportunity to launch DKNY. They took the chance and founded Donna Karan International in 1989. For 30 years, she headed the DKNY brand. She later launched the Urban Zen brand and turned her attention to philanthropy.
Many recognize supermodel Cara Delevingne as the face of DKNY, but Donna Karan was the mind behind the high-end brand. In 2001 Louis Vuitton Monët Hennessy (LVMH) purchased DKNY. In 2015 Karan stepped down. At that time, LVMH sold DKNY to the G-III Apparel Group. The investment group paid $650 million. Now, according to lists published by USA Today and other publications, 41 DKNY stores closed in 2019.