DVF Losses
Diane Von Furstenberg’s luxury fashion brand DVF faces substantial losses. The United States operation, DVF Studio LLC, lost $22 million in the financial year ending 31 December 2018, and liabilities exceeded assets by more than $6 million on its Balance Sheet. In 2017, DVF lost $35 million and its Balance Sheet reflected $3 million more liabilities than assets.
As disclosed by the Sunday Times on 24 May 2020, DVF is putting its UK subsidiary into administration. Along with this, is the closure of the London DVF flagship in Mayfair which opened in 2007. Diane von Furstenberg said of the store closure:
“It’s with a lot of sadness that DVF UK had to close due to the very difficult present situation.”
DVF finance director Andrew Stokoe said that the brand was “resetting its business model” following the COVID-19 pandemic. DVF UK, markets the brand and receives a commission based on turnover. In 2018 it made a small profit after taxation of £124,000, down by £2,000 compared to 2017.
DVF Leaves CFDA
Diane von Furstenberg is identified by her iconic wrap dress that was first launched in 1974. Sales of the garment are in the millions and it has been worn by the likes of Michelle Obama, Kate Middleton, Kate Hudson, Susan Sarandon, and many other A-listers. A fashion icon herself, von Furstenberg was chairman of the Council of Fashion Designers of America (CFDA) for 13 years. In 2019, she announced that she would be stepping down from the position, saying:
“I’ve been doing this for quite some time, more than a decade, and believe we’ve made some very important changes. However, I think it might now be enough.”
Tom Ford, a talented and established designer in his own right, replaced von Furstenberg as CFDA chairman in June 2019. Ford began his career as a design assistant for CFDA member Cathy Hardwick and joined the CFDA in 2000. Of his appointment, Ford said:
“I have had the privilege of being a member of the American Fashion community for many years and have experienced what the CFDA does for its members and the industry as a whole. Having lived and worked in each of the global fashion capitals of the world, I look forward to working with the Board of Directors to further the voice of American Fashion and its designers.”
