Just because a designer was successful designing for a big house, does not mean he/she will find financial backing when trying to strike it out on their own.
According to an insightful article in today’s WWD, a host of well-known and accomplished designers are said to be exploring the
launch of their own houses. Ex-Chloé designer Phoebe Philo and
Lars Nilsson in Europe to Patrick Robinson in the United States. Even
the reclusive Jil Sander is said to be itching to get back into the
business and is putting out feelers for financing.
But there are
few financial entities targeting start-ups, and available money, while
plentiful, typically comes with plenty of strings attached, observers
investor interest, but people are careful because they want a track
record and critical mass. If they’re not doing $5 million to $10
million [at wholesale], it’s very difficult for investors [to be
interested]," said Richard Morgan, BNP Paribas.
more, strong-willed designers are often very demanding about creative
control and can be blasé about secondary lines, accessories and
licensing — cash cows upon which many investors insist.
said designers looking to launch a brand typically require a minimum
initial investment of $5 million, with a second round of financing in
18 months to two years in the $10 million to $15 million range.
Read the full article "Designers for Hire: Big Names Face Uphill Battle to Get Backing."
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