Amid all the hullabaloo about the economy, it’s easy to criticize the fashion industry and say that the financial woes of companies like Gucci and Versace are just deserts for encouraging frivolity.  It’s easy to say simply that this is no longer a world for luxury, and too bad if luxury fashion doesn’t sell anymore.

Yet let’s not lose sight of the fact that there are little people in every industry, including the seemingly-superficial luxury market.  NY Times writer Campbell Robertson reports on the struggles of independent alligator farmers in Louisiana, who are suffering hard times because of the current financial situation.  Orders for skins have slowed significantly, not only because of more somber recession-driven trends but also because luxury brands like Hermès are taking over smaller farms in suspiciously monopoly-like fashion.

We like that this economic situation allows more alligators to stay in the wild and keep their skins for themselves, but we’re turned off by the fact that big-time fashion names have seemed to turn away and ignore the independent suppliers who have quietly helped them through for all these years.  Although in light of present times we appreciate the general toning-down of the luxury market, we’re reluctant to fully embrace the change because of the small-scale suppliers who rely on business from the fashion industry to put food on the table.

Where do you stand?  Are you happy to see the end of luxury, no matter who else goes down with the ship, or do you think the welfare of everyone within the supply chain (including those at the very bottom) is reason enough to keep selling diamonds and croco loafers?

Read the full story {NY Times}

Henri Bendel, for example, has a couple new locations in Beverly Hills — and although NY designers are by no means relocating to sunny SoCal (Sophomore designer Chrissy Miller, for one, doesn’t “get all the embellished denim and crazy graphics” of LA), expect several more east coast shops to open cross-country.

Perhaps it’s the sunny climate or the hippie history, but California tends to be much more casual and thus more receptive to creative experimentation than New York: a gold-mine for high-end retail brands in a still-recovering financial market.  Whatever the case, we look forward to seeing what comes out of these new east-meets-west endeavors — and have one more reason to use up our frequent-flyer miles.

Read the full story  {LA Times}

The circle of life runs round again, and while on one hand we’re excited by all of fashion’s new kids on the block, we’re also sad to see the probable end of the fashion greats like the house of Christian Lacroix.

Lacroix is another designer who has had to declare insolvency in response to the ailing financial market, and although a few buyers (like Emirati Sheikh Hassan Ben Ali al-Naimi) have stepped forward, the fate of the fashion house still teeters on shaky ground.  The French tribunal responsible for the case was unable to resolve anything today, declaring a new hearing date on 1 December.

Although the Rococo decadence of Lacroix is out-of-keeping with the more pared-down conservatism brought on by the recession, we still love the house’s colorful optimism which adds some much-needed brightness to an otherwise gray runway season.

Read the full story {AFP}

Lauded by by Queen Anna herself as “a poster child for London cool,” Bartley was forced to close up shop when company investor Club 21 recently withdrew its financial backing.  Despite the popularity of Luella with celebrities and the fashion set, the company amassed a great deal of debt over the past year and the Club 21 decision was the final blow.

We will sincerely miss Luella and hope this mess will be sorted out soon.  As for Bartley, she has high hopes for brand rebirth: “The Luella girl,” she says optimistically, “can have an exciting future, whichever incarnation she takes on next.”

Read the full story {Times Online}

International luxury brand Escada is still in hot water after filing for insolvency this August, but ZSL Partners, a consortium backed by the company founder’s son, Sven Ley, has stepped forward to bid on the fashion house in an attempt to save it from going under.

ZSL Partners is comprised of Ley, former head of Gucci Giacomo Santucci, and Italian investment group Borletti and is backed by several (unnamed) wealthy families.  Escada has not yet reached a decision on the final buyer, but a small number of investors have come out of the woodwork to save the ship, with ZSL Partners offering a little over $118 million.  An official announcement will likely be made within the next couple days, sources say.

We hope Escada will be able to pull itself out of its financial mire and continue to be the great fashion house we love to watch.

Read the full story {Reuters}

Although companies backed by luxury mega-giant LVMH are doing relatively well thanks to the conglomerate’s deep pockets, Versace — though a luxury brand — is still struggling because it is privately-owned and thus can not depend on the stabilizing stock market to stay out of the red.

If all goes as planned, the Versace brand should be out of deep water and generating revenue by 2011.

Read the full story {NY Times}