LOS ANGELES — Designer Christian Audigier held court in his Ed Hardy store here, outfitting a photo shoot, checking models and meeting with licensees — exerting his control over every aspect of the business.
That’s the way Audigier wants it, and now he finally has what he wants.
Seeking creative freedom, business control and potential riches, an increasing number of designers are leaving companies in which they have no stake, or depend on financial backers, to start their own brands.
“I’m freer and nobody is on my back,” said Audigier, who left Von Dutch in August and has licensed the name of tattoo artist Ed Hardy for a line of T-shirts, denim and trucker hats sporting Hardy’s designs. “People can talk to me directly, we don’t have to wait for meetings and I enjoy on-the-spot decision-making.”
A booming contemporary market and the availability of investment money has sent revolving doors spinning:
Related Articles
- Adriano Goldschmied sold his stake last year at Koos Manufacturing and launched GoldSign.
- Joe Krafka left Red Tiger Trading Corp. last year to run T Luxury.
- Denim designer Ya-el Torbati recently quit Yanuk with hopes of creating her own line.
- Joie Rucker sold her interest in Joie and started Tres Angeles.
The departures are being driven by designers’ creative frustrations or lack of shared vision with an employer or partner. Industry experts said as apparel companies grow, there is more pressure on them to churn out product in a more streamlined way to reach a broader retail audience, and some designers want to buck those trends.
“Success is great, but it challenges the design vision,” said Rucker, who has launched two lines for fall, Puka and ArchIndigo, under the Tres Angeles umbrella. “Once people see success, they want to do the same thing over and over and that doesn’t help the company’s longevity.”
Her priority is for slow, controlled growth in contrast with the pace at Joie, which grew too fast, she said. Rucker sold her stake in her contemporary sportswear line to former partner Sean Barron last year.
You May Also Like
An improved economy is lifting the financial sector, which is more apt to fund an experienced designer. Though many designers start on a shoestring — and others, like Goldschmied, can fund their own projects with their cash-outs — the production demands of one large order may overwhelm an operation. That’s why financial experts recommend funding in the six-figure range for a successful launch.
“There’s an awful lot of money in the marketplace,” said Joseph Kofsky, regional business development director at Buxbaum Group, a consulting, management and liquidation services firm in Calabasas, Calif., who in the last week met with two designers trying to start their own lines.
Kofsky said liquidity doesn’t translate into stupidity on his part. That means designers still need to have detailed business plans, including cash-flow charts.
“We’re looking for a minimum of 30 percent returns on our investment,” he said.
Designers have also been affected by the high-profile sales of companies such as Juicy Couture and C&C California to Liz Claiborne Inc. in the past two years and the dizzying windfall.
“[The deals] are driving designers to say, ‘I need a piece of that action and I have to hit my home run now,’” said Lee Hirsch, president of Woodland Hills, Calif.-based Continental Business Credit, cautioning the overly exuberant. “It’s still a shot in the million. There has to be some phenomena to occur for a company to be desirable like that.”
But for many, a chance for brand-building is worth the risk. Goldschmied has expressed regret that his line didn’t reach global brand status under his design direction at Koos. He sold out last year and has big plans for his new line at GoldSign, which include a men’s division and retail stores. He also hopes to experiment with new ideas, testing concept pieces, such as a denim shrug made to look like fur. It’s that fashion gamble that brings credibility to a designer and was harder to come by at a more bottom line-oriented facility, Goldschmied said.
“As a leader in the marketplace, you don’t go to the market to see what’s happening, but you give a direction to the market,” he said.
Their lives as new entrepreneurs haven’t changed the fundamentals: long hours and sweating over design details. If anything, they wear more hats, some more glamorous than others.
Krafka, a former president of Earl Jean and vice president at Mossimo Inc., described himself as the “owner-founder-custodian-shipping manager” of T Luxury, which he began at Red Tiger as president and took with him on his exit last year. It is a line of knits selling to Fred Segal Flair in Santa Monica, Calif., Scoop in New York and Louis of Boston.
“I’m doing everything from taking the trash out to writing orders, but I’ve always done that so it’s not an adjustment,” he said. “It’s just more satisfying doing it for yourself. I’ve been a part of building brands over my career. At some point, I just had to do one myself.”
Still, these solo artists don’t rule out another walk down the aisle with a potential partner. Many are apparel veterans who take the high road, keeping those bridges intact. They also understand the fickle nature of the business and its one-of-a-kind lucky breaks — ones to catch or lose forever.
“If a good opportunity comes my way, say a high-end fashion house, why not,” Audigier said.
“Never say never,” Rucker advised. “Just because it wasn’t right before doesn’t mean it can’t be right again.”