Jake Chicago Not Paying Its Bills?

jamestown123 · Jul 16, 2009

I am new here! Someone explain to me jet's relationship with south willard!?

lol

indesertum · Jul 16, 2009

i've always wondered why designers would ship out clothing to retail stores without even getting paid. are designers typically promised interest or higher margins if the clothes are paid for at a later date?

mulansauce · Jul 16, 2009

Originally Posted by indesertum

i've always wondered why designers would ship out clothing to retail stores without even getting paid. are designers typically promised interest or higher margins if the clothes are paid for at a later date?

I don't believe so. Some of them are just dumb.

LA Guy · Jul 16, 2009

Originally Posted by kiya

As a retailer that has three stores it hurts my head to read an article like this.
A few thoughts..

-They scammed the designers, pure and simple. As a responsible business person, you stop taking in inventory if you know for a fact you cannot pay the invoices, and if you had half a business sense you would stop early on far before you got your first call asking for money.
-I feel really bad for designers they screwed, especially the ones that spent massive amounts of their own money producing the product which was essentially taken in and NOT sold and not given back to the designer.

Having represented some small designers in the past, I'd have to say +1 to this. I've had guys ship, and then have the boutique go bankrupt and the owners (literally) disappear from the scene a week later. That is just not cool, and there is essentially nothing you can do to get your money back. Actually, even for bigger companies, it's hard to get your money back, and usually not worth it, even if the money is substantial.

-As sad as it is, there are hundreds of other well known boutiques across the country right now in this same exact situation; the only thing that can help is consumers shopping locally at small operation boutiques as opposed to big box boutiques.

Here's to the economy turning up and to the all the other brave retail store owners, i salute you.

+1

robin · Jul 16, 2009

The $5 million number might be possible. They had two store locations, with one being in the north side area right among high end stores like Hermes, etc.

bdeuce22 · Jul 16, 2009

Originally Posted by kiya

Here's to the economy turning up and to the all the other brave retail store owners, i salute you.

not in my hood

robin · Jul 16, 2009

i've always wondered why designers would ship out clothing to retail stores without even getting paid. are designers typically promised interest or higher margins if the clothes are paid for at a later date?

Originally Posted by mulansauce

I don't believe so. Some of them are just dumb.
Ship first, get paid later is a practice that goes in all sorts of industries and businesses. The decision to ship on NET30 or whatever terms should be based off credit worthiness and other rational factors though, not on how you think you're good buddies with the store owners.

mulansauce · Jul 16, 2009

There's a difference between "ship first, paid later" and "ship repeteadly for several seasons, paid later." More than a few of the designers in that article were--to but it nicely-- simply naive.

APK · Jul 16, 2009

I'm not sure how anyone could sympathize with the owners. It's unfortunate their once-profitable business went belly up, but they handled the downward spiral like scum. Not answering/returning phone calls from designers who provided you stock? That's some bush league stuff right there.

As someone who makes his livelihood selling things, I know it's a tough pill to swallow when times get tight and you don't have the funds to cover all expenses. But falling out of sight like these two guys did is on par with some phony seller on eBay.

At the collections in New York and Paris, they were described in glowing profiles as wearing Martin Margiela and Burberry and, for Mr. Lawson, a Breitling watch. In Chicago, they lavished their best customers with free tailoring, fashion shows and lunches, seeking to establish themselves as players along with the city's other exclusive stores like Ikram and Blake. A 2006 article in Crain's Chicago Business listed their sales at $5 million.

Aside from the ignoring phone calls part, this portion bothered me the most. My head hurts almost any time I go into the CEsspool, but even I have to wag my finger at this extravagant consumption that was clearly not realistically in line with their means.

erbs · Jul 16, 2009

Originally Posted by Teger

is denim doctors done then?
???

Rye GB · Jul 16, 2009

No, the Beverly location is still in business.

In addition to all the doom and gloom CIT is about to go belly up. They're a big component in the fashion industry when it comes to credit, this will **** up the way mid level manufacturing and retail operates big time.
http://news.bbc.co.uk/2/hi/business/8153123.stm

southgate house · Jul 16, 2009

I wore a beautiful adam kimmel blazer today that I purchased from jake last year at HIGH discount and i am hoping that the designer was paid.

Rye GB · Jul 16, 2009

Originally Posted by LA Guy

On that note, I know that everyone likes a deal (myself included), but if you can afford it, buy something from your favorite stores at retail. Ultimately, being able to buy the best merchandise at 75% off is not good for anyone in the long term. It means that there will be fewer retailers, and less choice at those that remain.
Perhaps stores should only offer 75% loyalty discounts to customers who provide receipts that show they made full price purchases earlier in the season. Too many customers take for granted end of season sales. It's especially advantageous here in SoCal as there's generally no weather change so why buy tee's, button downs and lightweight outerwear at full price in March when you can get them for cheap in the June sales and still get months of warm weather wear deep into Fall.

ghulkhan · Jul 16, 2009

so fok are they still paying their affiliate dues?

jet · Jul 16, 2009

Most of the time it is ship now pay later, some are pay up front now and some are pay all up front it all depends on the relationships and parties involved.

Jake Chicago Not Paying Its Bills?

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