Reed Krakoff's eponymous label appears to be in serious financial straits.
Since Krakoff bought his namesake brand from his previous employer, Coach, a year and a half ago (Krakoff stood to lose a $3 million bonus if he didn't leave Coach with it), the five-year-old company has changed CEOs three times, opted not to show a fall 2015 collection (purportedly to focus on the opening of its SoHo store in February) and suggested it would be begin focusing on the contemporary segment, rather than luxury. And now, the company plans to "suspend all future design and production," according to a statement issued to Fashionista. The news was originally reported by WWD.
Reed Krakoff plans to shut down its store on Madison Avenue within the next three weeks, but will continue to operate its brand new store on Greene Street, its e-commerce site and its outlet location at Woodbury Commons. About 30 employees will remain with the company for the time being.
Meanwhile, the company and its backers are going to meet with potential investors and explore other "strategic options," ranging from "production and distribution partnerships" to a full sale of the business, according a statement. Should the company remain intact, it plans to focus on the "accessible luxury segment of the accessories market" — the very segment Krakoff has spent the bulk of his career catering to at Coach.