PHI Closing

[maffam]

From WWD:

Susan Dell's Phi Label Shutting Down
by MARC KARIMZADEH
Posted MONDAY DECEMBER 21, 2009

Phi, the critically-acclaimed label founded by Susan Dell in 2003, is closing, another victim of the recession.

The collection had developed a cult following in the New York fashion scene.

But the pre-spring delivery, which arrived in stores this month, will be Phi's last, and the Phi boutique at 71 Greene Street in SoHo is expected to close at the end of next month. The company cited economic conditions for the decision.

"It's a really challenging climate right now for luxury goods," said Phi chief executive officer Julia Hansen. "There is not so much confidence in that market going forward."

The company informed staffers of the decision on Monday. According to a statement, the company will offer employees "transitional support" in the coming months while the operation is winding down.

 

[Scott]

why am i not surprised? it was very inconsistent,in general....was incohesive and highly derivative of styles already established by other designers. i don't think it quite found it's identity.

it really goes to show that power-money can't always keep a good fashion business.

 

[Leeroi]

I think other than the recession, the fact that Phi collections always look like recycled old collections by other designers made it unappealing and not as sell-able. You could easily go to Banana Republic, H&M, or Topshop and create the same looks as Phi without spending much money.

 

[girlalamode]

So sad, yet another one down. This last year has been so ruthless for design labels.

 

[tricotineacetat]

Hmmm. While I completely agree that the label has had a few highly disappointing collections under their belt, epitomized by SS'06 and FW'06, I thought Phi has always had a pretty recognizable look and a particular type of clothing they always delivered - highly detailed, impeccably finished, rigorously sharp - In times where people like Helmut Lang are dearly missing and in which Ann Demeulemeester is turning towards a more romantic look, Phi to me always had a refreshingly streamlined, simplified, American perspective on an aesthetic you would normally rather find in a Paris designer's collection.

 

[leyla m.]

saw this coming the very first time i met the team in NY! sad but i found the collections lacking personality and definition...

 

[LabelWhore4]

I'm so sad! Fall 2009 was PERFECT! I'll miss them.

 

[LagerfeldBoy]

This is so unfortunate. Especially when they were beginning to be recognized within the industry. Personally dissapointing since I was beginning to be fond of the brand and it's collections.

 

[jeremydante]

a friend of mine used to be employed by the company & says that they used to spend upwards of $80,000 to have marie amelie suave style the collections. maybe thats where the issue lies. or maybe susan dell is just protecting her investments. everyone tryna save they loot nowadays. billionaire's included.

 

[Karen0193]

I'll miss them,they always had really cool campaigns

 

[bones]

WHAT

highof75-@photobucket

 

[djwong]

I am so upset about this!!!
I went to that awesome sample sale in September --- the awesome-ness of the prices should have been a hint about their financial situation.

Alas.

 

[mikeijames]

as if susan dell -- yes, that dell -- could create a fashion house out of wholecloth by just throwing millions and millions of dollars at top models, hit designers, and star photographers. while i LOVED a lot of phi's output, i do believe that we're living in an era where people save their money for a special piece -- and perhaps a piece with a historical name -- and not necessarily for a sleek new look which is what phi offered. when times are good, we might spring a couple thousand bucks for a great cut of pants, but when times are bad, we'll spend that on a pair of "it" shoes and call it a day.

 

[TREVOFASHIONISTO]

yes they were being shot by Meisel
and for a new company that is risky.
i liked their clothes and their ads were great
i better go stop by their store before work

 

[Bidwell]

WWD: the whole story. If a billionaire's wife can't keep afloat, the industry is really in trouble!

Phi, the critically acclaimed sportswear label founded by Susan Dell in 2003, is closing, another victim of the recession.

The collection developed a cult following in the New York fashion scene. But the pre-spring delivery, which was shipped to stores this month, will be Phi’s last. The Phi boutique at 71 Greene Street in Manhattan’s SoHo neighborhood is to close at the end of next month.

Phi’s shuttering is another sign of just how challenging the times continue to be for small fashion firm. Austin, Tex.-based Dell, whose husband, billionaire Michael Dell, is the founder and chief executive officer of computer giant Dell Inc., created Phi after designing a sportswear collection under her own name for six years.

Susan Dell viewed Phi an incubator for fresh ideas, initially tapping Tim Gardner as the designer, but he left not long after the launch. His successor, Andreas Melbostad, gave the label a distinct voice. Under the Norwegian’s creative direction, Phi developed a focused point of view that was urban and edgy, often mixing the hard and soft aesthetic with innovative cutting techniques for leather and draping that sometimes referenced bondage themes.

Phi’s collections, presented during fashion week in the company’s 10,000-square-foot penthouse showroom on Ninth Avenue in Manhattan, which could be reached through an atmospheric freight elevator, were widely praised by fashion insiders, but targeted a select group of fashion consumers — so niche that its prospects became too restricted for the label to continue to be viable in the current financial climate.

“If you are putting a collection out there that speaks to a niche audience, which is what we always intended to do, you are defining a much more narrow market for yourself,” said ceo Julia Hansen, who declined to disclose the brand’s volume. “You have made a decision to be niche, and unfortunately the current realities have shrunk that market. This decision wasn’t based on how is the collection doing right now, but it was based on the overarching economic climate and the downward pressure on luxury goods over the next 12 to 24 months.”

Dell, who was unavailable for comment, was less involved in the day-to-day running of the operations, but, “we are in agreement with the decision,” Hansen said.

“It’s just very difficult to look forward with confidence against the opportunity in that market,” she said. “The realization is that for a smaller brand, it’s going to be a very challenging time even beyond 2010.”

The label is sold in about 75 stores worldwide, including Neiman Marcus and Hirshleifer’s in the U.S., Holt Renfrew in Canada, Colette in Paris, Harrods in London, and online at Net-a-Porter.com. Hansen stressed that while the line has had a “stellar” 2009, the decision to close was based on the shifting paradigm in luxury.

This year the company decided aborted plans to open a freestanding boutique on Melrose Avenue in Los Angeles.

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Phi RTW Spring 2010
Photo By: Robert Mitra
Launch Slideshow 6 images




Hansen expects to put select items on sale at the SoHo store through January, then stage a “warehouse sale” at the end of that month to clear the existing inventory. She and chief financial officer Mehul Tank will oversee the shut down of the business, which is expected to conclude by mid-spring. The two executives “will make sure that this transition happens with as much integrity and dignity as we have managed our business in the past and that is really important to us,” Hansen said. “We want to make sure it’s done in a Phi way.”

The company informed its 35 employees of the decision on Monday and will offer staffers “transitional support” while the operation is winding down.

Hansen praised Melbostad, who joined Phi after working at Donna Karan, Calvin Klein and with Alber Elbaz at both Guy Laroche and Yves Saint Laurent.

“He was the creative visionary behind this brand and an amazing partner in the business,” she said. “I have confidence that he will find an amazing new chapter for himself and be able to create more beautiful clothes.”

 

[LolaSvelt]

This is so unfortunate. Especially when they were beginning to be recognized within the industry. Personally dissapointing since I was beginning to be fond of the brand and it's collections.

I agree.

 

[justlooking]

Hmmm. While I completely agree that the label has had a few highly disappointing collections under their belt, epitomized by SS'06 and FW'06, I thought Phi has always had a pretty recognizable look and a particular type of clothing they always delivered - highly detailed, impeccably finished, rigorously sharp - In times where people like Helmut Lang are dearly missing and in which Ann Demeulemeester is turning towards a more romantic look, Phi to me always had a refreshingly streamlined, simplified, American perspective on an aesthetic you would normally rather find in a Paris designer's collection.

I completely agree with your whole statement.

It's sad that they can't recover.

 

[MayYing]

really a pity...

 

[Matanah]

I was incredibly sad when I heard about this, particularly because they were just beginning to be more visible. The details of the collection were always incredible, and the materials and construction were always the highest quality. However, everything was always *top* of the line, so I'm sure the money being spent was insane. I wonder why they didn't try to cut back before letting go completely.

 

[alexscott]

PHI is last victim of Recession...