You can't turn on the TV or open the newspaper without being bombarded with stories about the global economic crisis. Banks are failing, real estate prices are falling, and cars and other pricey items are not selling – and the effects are being felt basically everywhere. And sadly, that everywhere includes the fashion industry. With less money to spend keeping their wardrobes up to date, some fashionistas have been holding off on investing in the latest styles. And as a result, the fashion industry is emerging as a major casualty of the financial meltdown, with many stores forced to close their doors. WWD recently investigated the results of the economic crisis on Los Angeles boutiques, and the results are not pretty.
Since the meltdown began last fall, a veritable who’s who of high end boutiques including agnès b., Danmark, Diabless, Kira Plastina, Magenta, Presse, Il Primo Paso, Parasuco, Tracey Ross, Sergio Rossi, Tryst and Vanity have closed up shop. Sergio Rossi, Rock & Republic and Ron Herman are looking to sublet their stores, while Madison and Diavolina are moving to lower-priced locations. But there is a bright side to all this doom and gloom. There’s probably never been a better time to score high fashion finds on sale, so watch the papers and the internet for announcements of upcoming store closings near you.