From The New York Times' Dealbook blog:
Unable to find a buyer or arrange a financial lifeline, Delia’s said on Friday that it would file for Chapter 11 bankruptcy protection and seek to close all its stores and distribution centers. The company said it would aim to run going-out-of-business sales.From The Wall Street Journal:
On Friday, Delia’s warned its shareholders that it “does not anticipate any value will remain from the bankruptcy estate.”
Delia’s news followed the bankruptcy filing Thursday by Deb Shops, whose 300 stores also were booming in the 1990s.From MarketWatch:
“When there’s one of these guys that’s kind of sick, it tends to infect all these guys,” Paul Lejuez, a Wells Fargo Securities analyst, said of the hypercompetitive environment teen retail environment.
Teen retailers like Delia’s have struggled to compete with fast fashion players like H&M and pure online retailers that cater to millennial shoppers who increasingly do all their buying on the Web.And from Business Insider:
But Eric Beder, specialty apparel analyst at Wunderlich Securities, said he believes Abercrombie is running out of options.One of my fraternity siblings in Manhattan has a roommate who's in the industry and claims that "everything is fast fashion now". My friend and I agree this is hyperbole but there is clearly a sense in which fast fashion is setting the pace.
"What is going to turn the tide?" Beder asked in a note to clients. "Frankly, we have no idea."
Beder notes that Abercrombie has already exhausted numerous turnaround strategies, to no avail.
"Abercrombie has already aggressively closed domestic locations, cut back on inventories, shifted away from logo products, and cut costs," Beder writes.
The once-leading teen retailer has struggled to stay relevant since the surge in demand for fast-fashion brands like Forever 21 and H&M.
It's just a thought, but an overdose of fast fashion may be one driver behind the rise of vintage.