Us fashion faces collapse: designers struggle as retailers bankrupt

The American fashion landscape is teetering on the brink, as a wave of bankruptcies among major retailers and a critical lack of support for independent designers threaten to reshape the industry. Four years after Fashion Trust US launched with ambitious goals, the reality for many emerging labels is far grimmer than initially envisioned.

A bleak reality for independent brands

The economic headwinds of 2022 – soaring costs and a turbulent retail market – have proven relentless. Matches, Farfetch, and Ssense, once titans of the multibrand online world, have all declared bankruptcy, followed closely by the combined Saks Global entity, formed from the acquisition of Neiman Marcus and Bergdorf Goodman. Small to mid-sized independent brands are bearing the brunt of these failures, often left unpaid amidst the corporate wreckage.

Limited support, growing pressure

While cities like Paris and Milan offer robust support systems for their design talent, the US remains frustratingly underserved. The CFDA/Vogue Fashion Fund, the nation’s most prominent award, has provided over $8 million in private funding, but it’s simply not enough to compensate for the systemic gaps in institutional support – no government funding, scant awards programs, and a general lack of resources to nurture fledgling designers.

Ftus: a glimmer of hope, but not a silver bullet

Fashion Trust US, founded by Tania Fares, aims to bridge this gap, offering tangible support to American designers. However, Fares argues the system is “fast and very commercially-driven,” failing to keep pace with the industry’s demands. “There are strong initiatives, but not enough of them – especially given how big the United States is,” she stated at the fourth Annual FTUS ceremony in Los Angeles.

Focus on stability and mentorship

The FTUS selection process prioritizes established, yet still burgeoning, brands – between two and seven years in operation. The board scrutinizes a brand’s Business structure and financials, ensuring a solid foundation before offering assistance. Recent winners, including Lii’s Zane Li (ready-to-wear), Ashlyn’s Ashlynn Park, and AnOnlyChild’s Maxwell Osborne and Kristy Chen, represent a shift towards more mature, yet still developing, labels. This year’s prize pool of $600,000, funded by generous patrons and sponsorships, is a significant boost, coupled with a mentorship program led by Bond Creative MGMT’s Leonardo Lawson.

Beyond financial support: the power of connection

Lawson emphasizes that genuine guidance is paramount. “Financial support on its own is not enough. I feel designers need guidance just as much.” Diotima’s Rachel Scott, a past CFDA/Vogue Fashion Fund winner, highlights the importance of community and visibility, noting that the award provides “a turning point” beyond immediate funding. The success of brands like Lii and Diotima underscores the value of this holistic approach.

A new direction for us fashion

The shift to Los Angeles for this year’s ceremony – a deliberate move to establish FTUS’s own identity – reflects a growing recognition of the need for a distinct American voice in the industry. With twelve New York-based finalists and the presence of industry titans like Tory Burch and Michèle Lamy, FTUS is actively cultivating its credibility. The increasing number of applicants – now exceeding 650 – demonstrates growing awareness of the organization’s mission. Ultimately, Fashion Trust US’s success hinges not just on awarding money, but on cultivating a sustainable ecosystem for American design.