The Working World

Recession’s Celebrity Fashion Victims

The recession has impacted fashion on a number of levels, from the decline in popularity of “it” bags to the rise in thrift-store shopping. But there may be no singular shift in retail culture that elicits as much positive reaction as the death of celebrity clothing lines.

Celebrity-backed clothing lines were all the rage during the boom years, with everyone from movie stars (Sarah Jessica Parker, Jennifer Lopez) to reality TV fixtures (Heidi Montag, Lauren Conrad) and even rappers (Eve, Snoop Dogg) signing on. By 2006, sales of “celebrity-licensed products” had risen to $3.5 billion, according to the Wall Street Journal. But things just haven’t been the same since the recession began, now that many customers are considering cost and quality over labels and luxury when it comes time to shop for clothes.

The result? Overall sales for celebrity clothing lines fell by $600 million last year, while many of the most ubiquitous lines closed up shop altogether. A handful of some of the most prominent clothing lines that have shut down in the past year (along with three that have found ways to survive and thrive), below.

Jennifer Lopez’s Sweetface: After four years in business, JLo announced that her lower-priced spinoff collection, Sweetface, was shutting down in June 2009.

Lauren Conrad Collection: The reality TV fixture closed her upscale line in March of this year. Not to worry, though, she’s already got a lower-priced collection, called LC Lauren Conrad, out with Kohl’s.

Sarah Jessica Parker’s Bitten: SJP’s budget-friendly clothing line was forced to close down after Steve & Barry’s, the store where it was sold exclusively, filed for bankruptcy in July 2008.

Mandy Moore’s Mblem. Moore announced that she was “taking a break” from her clothing line, after three years in business, in February 2009.

Heidi Montag’s Heidiwood. Sold exclusively at Anchor Blue stores, the Heidiwood collection was discontinued last year after just one season.

André Benjamin’s Benjamin Bixby. Benjamin’s brand was reportedly already facing financial trouble just four months after its debut last summer. Now, just one year later, it’s no longer being carried at Barneys New York.

Jaime Pressly’s J’aime. Pressly announced that she was shutting down her line, so she could spend more time with her son and focus on her acting career, in September 2008.

Eve’s Fetish. The rapper shut down the production of her clothing line, Fetish, for the second time just last month.

Milla Jovovich’s Jovovich-Hawk. After five years in business, model/actress Milla Jovovich pulled the plug on her collaborative line with Carmen Hawk in 2008

Snoop Dogg’s Rich & Infamous. Although the brand hasn’t shut down yet, Snoop was already hinting at problems during an interview in March, saying that he was trying to “keep the prices a little lower” since everyone has been “affected by the recession.”

On the flip side:

Mary-Kate and Ashley Olsen’s Elizabeth & James. The Olsen twins’ high-end line is thriving, despite the recession, thanks to its innovative designs and cadre of celebrity fans (including Heidi Klum, Beyonce and Rihanna).

Jessica Simpson Collection. Great timing, moderate price points, and a wide selection of items—including everything from shoes to hair extensions—have helped Simpson rake in the dough. In 2008 alone, the Jessica Simpson Collection brought in $300 million worldwide.

Lindsay Lohan’s 6126. Surprisingly, Lohan has managed to find success with her upscale leggings line. Since its debut last year, the collection has performed well in retail stores, including Henri Bendel, Nordstrom, Intermix and Lisa Kline.

Tags: business, celebrities, clothes