As the 2011 calendar year draws to a close, some New York labels are facing some financial pressure. The latest is Adam by Adam Lippes, which has officially been dropped by one of its biggest backers, Kellwood, which acquired the brand in the summer of 2010.
A WWD report indicates that the developments are part of a larger shake-up at Kellwood overall, and that employees at Adam found out about the news on Thursday. Appointments to view the pre-fall collection, which were apparently scheduled for next week, have reportedly been canceled. WWD spoke to an anonymous financial source, who elaborated on the ways that Adam might not have been write for Kellwood:
This individual, who is familiar with the designer market, said that while “Lippes is talented and does a good contemporary line, the price point is wrong.” He said the brand isn’t big enough yet to do the store rollout that was planned, suggesting that a substantial investment was needed to build up the label and add brand extensions before making an even bigger investment on the retail front. He also felt that Lippes could have a more successful business if the brand stayed within the smaller high-end market.
Other brands in Kellwood's current repertoire include Rebecca Taylor and Vince. With luck, Adam will be able to secure some new funding quickly to move ahead toward the Fall 2012 shows in February.