Must Read: CFDA Faces Criticism Over Kara Ross Board Seat, L Brands CEO Faces Unprecedented Challenges
Plus, BlackRock makes investment in Authentic Brands Group.
These are the stories making headlines in fashion on Monday.
CFDA faces criticism over Kara Ross board seat
The CFDA is getting backlash over jeweler Kara Ross's seat on its board, after it became public knowledge that she helped plan her husband Stephen Ross's Hamptons fundraiser for President Donald Trump's reelection campaign. On Friday afternoon, jewelry designer Dana Lorenz — a 2010 CFDA Award nominee for her label, Fallon — sent a letter formally canceling her membership to the organization as a result of its ties to the Ross family. A few days before, designer Prabal Gurung announced that he had canceled preliminary talks to host his September fashion week show at Hudson Yards, because Ross was behind the $25 billion real estate development. {WWD}
L Brands CEO faces unprecedented challenges
Leslie Wexner, the 81-year-old founder and CEO of L Brands Inc., is confronting a heap of challenges: He is tasked with saving both Victoria's Secret and restoring his own reputation, following revelations around his involvement with alleged child sex trafficker Jeffrey Epstein. Wexner is also getting pressure to revise the board, which up until now, he virtually controlled by handpicking people with whom he has close personal ties. {WWD}
BlackRock makes investment in Authentic Brands Group
BlackRock Inc. announced on Sunday that it bought a 30% stake in Authentic Brands Group for $875 million. With this investment, BlackRock is now the largest shareholder in the company, which manages brands including Sports Illustrated, Marilyn Monroe and Juicy Couture. {Fashionista inbox}
Private equity interest in luxury fashion remains high
Private equity investors continue to prioritize luxury fashion, despite the mixed success of such investments. And while the beauty, restaurant and digital luxury goods segments are expected to grow twice as fast, a recent Deloitte survey of 60 leading private equity firms found that backers are most interested in putting cash towards apparel and accessories. {Vogue Business}
Why Bath & Body Works is still thriving
Bath & Body Works is a rare mall-based success story that has defied the decline of brick-and-mortar retail. The beauty chain operates 1,700 stores across the U.S. and Canada and brought in $4.6 billion in sales last year, up 11% from the year prior. The retailer's success seems odd, granted it's largely ignored the beauty and wellness trends that have fueled the growth of specialty chains like Sephora and Ulta, but it continues to thrive because it is consistent, accessible and affordable. {Business of Fashion}
The challenges of maintaining a socially conscious brand
Both large fashion companies and small socially conscious brands are struggling to meet the demands of today's consumers, who increasingly consider the social impact of an item before buying it. The big brands with vast supply chains grapple with oversight, while small labels are challenged with finding a balance between costs, design constraints and product desirability. {Vogue Business}
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