Overheard in an elevator last night:
A young designer (we won’t mention your name, though we know it), babbling to a friend about how most investment banks won’t put money into a fashion label until it’s made $10 million.
The exception, she said, was Theory, whose president, Andrew Rosen, is meeting with emerging designers, she said, to invest in smaller brands, she said.
The only catch?
If your label is successful, Theory will always get a percentage of your sales – she said.
It’s a cool story if it’s true, but if you’re silly enough to talk loudly in a crowded elevator about your secret business meetings, maybe you’re also silly enough to get your facts wrong…
Tags: Theory
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no, theory’s actually been trying to do this for over a year now…just no one’s actually taken to it yet. you would be surprised as to who they have tried to invest in.
the “catch” that they would take a percentage of profits is not a “catch”- it is a normal part of receiving investment
pyt designers beware…i hear rosen has a think for the ladies. i’d be careful not to babble and keep it professional.
silly is right!
Not sure how Theory is an “exception”, since it’s not an investment bank, but that is just splitting hairs.
The flow of investment capital to unestablished designers is a very positive thing, even if it has strings attached…hopefully it will move the industry away from mediocre celebrity clothing lines which get to market simply because the designer has the resources to finance the line personally.
isn’t this a normal part of investing that you have to give a certain % of profit to the investor? I guess fashion designers should take more basic business courses lol investments are not like loans! Although if all the designer has to do is give % of sales and not creative freedom, thats actually a great deal.
no one’s actually taken to it yet, huh? i beg to differ. it’s pretty widely known that LTH has a hand in several emerging and established brands. and what’s so wrong with that? you’ve gotta stay creative and adaptive in this business…