It seems the downward spiral of bad luck continues at Emanuel Ungaro. The French label, which has been hit so many streaks of misfortune we’re ready to call it a “Lohan Curse” , has just confirmed a deal with fellow luxury label Giorgio Armani in the sale of the Ungaro flagship boutique in Paris. Opened in 1967, the boutique holds a pricetag of $10 million, capital they’re desperate to have right now just to stay afloat, tho it seems mere chump change to Armani.
The New York Post reported today that the prime real estate is just steps away from the Champs Elysees and that industry insiders on both sides of the pond are wishing the fledgling label well. “With the right leadership and design, it could probably come back,” said Ron Frasch, president of Saks Fifth Avenue. “It’s one of those brands whose struggles are probably under the radar screen of most customers.”
Under the leadership of Asim Abdullah, an American-based software developer who bought Ungaro in 2005 and knew next to nothing about managing a luxury fashion label, the brand has suffered through financial misgivings that has resulted in the dissolving of the company’s staff to a mere five people The worst and most publicized snafu was the choice to bring Lindsay Lohan on board as a “creative advisor” in 2009. Lohan held a tacky runway show during Paris Fashion Week Spring RTW 2010 that became the laughing stock of the industry, earning the Ungaro house some not needed negativity.
At the time, financial troubles forced Ungaro to close its swanky Manhattan boutique at 792 Madison Ave., surrendering the enviable address to fast-growing Michael Kors. Now with the second boutique closing, more than one source has started to wonder how long the label can survive. It’s not yet clear whether he intends to finally give up on Ungaro after hiring and firing six different designers in as many years.“His resources are totally depleted — whether they are financial or emotional,” a source close to Abdullah told The Post. “He’s reached a limit.”
Abdullah still owes $4 million to Salvatore Ferragamo, the luxury firm that sold Ungaro to him for more than $60 million. Ungaro lost upwards of $6 million last year, with about $1 million of those losses coming from the Paris flagship alone, according to The Post. The company’s incoming revenue last year was only about $4 million, mostly coming from licensing fees. And while Ungaro produced a spring 2012 runway show last October, those fashions never made it to stores. Unfortunately it seems like, anyway you slice it, Ungaro may not be long for this world.
Article Source: New York Post
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