The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The investment firm announced the financing on Wednesday.
In September, Everlane’s financial partners announced that the direct-to-consumer apparel seller had secured $65 million in revolving credit from CIT Northbridge, along with a $25 million loan from an undisclosed financial partner. At the time, the brand’s founder and executive chairman Michael Presyman said it plans to open more stores and develop new products. The financing also comes as Everlane looks to turn itself into a traditional fashion brand by releasing seasonal collections instead of product drops.
Gordon Brothers historically specialised in liquidating the assets of bankrupt retailers, but has expanded into financial services and brand management in recent years. In 2020 it provided a $13 million loan to Moda Operandi, and in 2017 it acquired the fast fashion retailer Wet Seal, which it relaunched as an online brand.
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Beyond Disruption: Everlane’s Next Chapter
After public scandal threatened its ethical image, CEO Michael Preysman believes the L Catterton-backed disruptor can still win on radical transparency even as competitors lay claim to the sustainable fashion space.
With an uncertain economic outlook, digital brands are forced to make tough calls on whether to cut back on marketing at the expense of growth or continue to spend and accept lower profits.
With the direct-to-consumer funding heyday now over, DTC brands need to turn a profit. Unlike their revenue-obsessed counterparts, DTC pioneers Marine Layer, Meundies and Trinny London offer a blueprint for achieving both top- and bottom-line growth.
Mounting digital marketing costs and e-commerce readjustments have put the viability of pure direct-to-consumer business models into question. The State of Fashion 2023 reveals that most brands will need to diversify their channel mix beyond DTC to generate growth.
Start-ups under pressure to operate in the black have logistics and marketing expenses in their sights.