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.
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.
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.
Francesca’s
Francesca’s sells fun and elegant fashions and accessories priced affordably. Francesca’s chain consists of 727 boutique stores. Unfortunately, Francesca’s has failed to pull a profit since 2017. A realignment of its executive board shook things up, and severe cost-cutting efforts gave their effect.
Sales dived 14% since 2018. Its market price tanked as well. At just under seventy cents per share, Francesca’s stock did so poorly that it tumbled right off the Nasdaq! Nasdaq requires $1 and above for trades on its stock market. Francesca’s also implemented a mass layoff at both the corporate and store levels. It cut $15 million a year in budget costs. Here’s to a better year for Francesca!
Olympia Sports
2022 was not a good year for many retail brands, Olympia Sports being one of them. It was established in the early 1970s and, at its peak, consisted of more than 230 stores nationwide, but things are looking a little different now. Up until 2019, only unprofitable stores were closed.
However, as 2020 kicked in, the brand took a hit and went into deep financial trouble. Faulty order management held by the parent organization, alongside the worldwide health crisis, brought the company to the verge of bankruptcy, and in 2022 Olympia Sports had to ultimately close its doors for good.