Many retail stores such as Circuit City, Filenes Basement, Sharper Image, Linen’s N Things are going bankrupt. Also, major fashion retail store such as Macys, LL bean, Ann Taylor, Foot Locker and Zales are closing stores.

When department stores close their doors designers lose buyers and profit.  How do designer’s themselves avoid bankruptcy?

There are some cut backs that can help you during this recession. Take control of your sales representation. Showrooms can be expensive if you aren’t selling anything. Get to know your buyers personally and find out if your collection has staying power. Any extra merchandise you have left over should be in a sample sale.

Any money made should be paid to your creditors until you debt is clear. Otherwise, you won’t have any credit for a new season. Choose fashion show participation wisely. Before you commit to an event, find out if the buyers attending will benefit you. Contact the buyers you know and have formed relationships with, make sure they attend. Learn how to sale yourself, your brand, your product.

If the inevitable happens and you go out of business, there are other options. Try to find a financially sound design house to sponsor your collection. If your collection sold well at some point, you may find a company willing to buy the rights to your collection. You can then restart again with a new name of course.  

Most companies see the signs before bankruptcy. You can avoid it by cutting back just like in your personal life.

Antauen Dennis, Fashion Brand Manager, Designer’s Loft
www.thedesignersloft.com
www.designersloft.onsugar.com