Diane von Furstenberg Cuts the Majority of Employees and Closes 18 of 19 Boutiques
The American brand Diane von Furstenberg will switch to a digital business model and focus on the Chinese market. The company will close 18 boutiques, including those in England and France. Only the store in New York, located directly under the DVF office, will operate. It is also reported that in early June, DVF fired most of the brand’s executives - for example, brand CEO Sandra Campos. In May, 75% of the company’s staff, which employs 400 people, fell under the reduction. The dismissal of employees was reported to Zoom, some of them were left without severance pay. Brand founder Diane von Furstenberg did not comment on the situation.
According to The Business of Fashion, this happened due to a steady decline in company income over the past few years. In addition, Diane von Furstenberg was unable to adapt to fast-fashion and find a new source of income after the bankruptcy of large department stores (they brought the brand most of the profit). The coronavirus pandemic, which entailed a crisis and the closure of boutiques, was the last blow to the brand.
The Diane von Furstenberg brand was founded in 1972 by Diane von Furstenberg. She is credited with creating the iconic wrap dress. Diane von Furstenberg is a symbol of American fashion (and the American dream - von Furstenberg is a Belgian born designer and founded her brand at 26 years old shortly after immigrating to the United States). For 13 years, she headed the Council of Fashion Designers of America. She helped a lot of designers to make a break through. So, the success of Alexander Wang - in many respects is the merit of Diane von Furstenberg.