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 online luxury e-commerce company know for its trunk shows, which offer designer items after they debut on the runway and before they hit stores, has a new leader. Srivats, who joined from Tesla in 2018, has exited and Jim Gold, former president of Neiman Marcus, is stepping in on an interim basis as of January 11.
Co-founder Lauren Santo Domingo remains in her role as chief brand officer. She is also on the board of the company, which counts Adrian Cheng, Apax Digital and New Enterprise Associates as investors.
Srivats joined the company shortly after it raised a $165 million round at the end of 2017, and his tenure was marked by an uptick in hiring — with several executives coming from Tesla and Jetblack, Walmart’s now-closed personal shopping services — as well as a high rate of staff turnover. A challenging warehouse move in 2018 that disrupted orders for many months.
In 2020, Moda Operandi started the year with layoffs and by shutting down its office in Shanghai before raising $100 million in equity and debt financing from existing investors. Facing further challenges, the company later shut down its men’s business and closed its London office with the exception of a few employees as part of further layoffs that saw the company cut around 100 jobs, about 30 percent of the workforce.
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Gold stepped down from his role as president and chief merchandising officer of Neiman Marcus Group in 2019 after nearly 30 years with the company, and he previously worked as Bergdorf Goodman’s chief executive from 2004 to 2010.
“Jim brings with him extensive fashion retail experience and a deep understanding of Moda Operandi’s luxury consumer,” said Santo Domingo in a statement. “I look forward to working with Jim as we envision new and exciting ways to serve our extraordinary clients.”
Fashion brands are edging in on the world’s largest gathering of design professionals and their wealthy clients, but design companies still dominate the sector, which is ripe for further consolidation, reports Imran Amed.
Blocking the deal would set a new precedent for fashion M&A in the US and leave Capri Holdings in a precarious position as it attempts to turn around its Michael Kors brand.
After preserving his fashion empire’s independence for decades, the 89 year-old designer is taking a more open stance to M&A.
The sharp fall in the yen, combined with a number of premium brands not adjusting their prices to reflect the change, has created a rare opportunity to grab luxe goods at a discount.