We'd rather have a slow news day any time than get bad news like this—Phi is closing due to economic hardship, according to WWD. There aren't many details yet, but sadly we all know too well what this recession has done to our industry. Employees were given the news today and the pre-Spring collection that just arrived in stores will be the last. The Soho store is expected to shutter its doors by the end of next month. CEO Julia Hansen said, "It's a really challenging climate right now for luxury goods. There is not so much confidence in that market going forward." Ugh. Phi was founded in 2003 by Susan Dell and fast became an industry favorite under the creative direction of Andreas Melbostad, known for his impeccable construction and body-con dresses. The show in September brought in a front row of fans like Carine, Lauren Santo Domingo, the Trainas, Kate Lanphear and Erin Wasson. We can only assume they're currently as devastated as we are.