Designer Brands Receive BFC Emergency Support
On 12 May 2020, the British Fashion Council (BFC) announced the names of 37 UK-based designer brands that will each receive up to £50,000 from a recently established £1 million COVID-19 Crisis Fund. The fund came into being by diverting the existing BFC grants usually given to support growing fashion brands. In a press release, the BFC claimed that funds were allotted according to “viable businesses depending on their urgency and capability to come through and thrive post-crisis.”
Recipients of support include Chalayan, Craig Green, Edeline Lee, Liam Hodges, Paper London, Raeburn and Roksanda. The fund will reopen for additional applications every time the £500,000 milestone is attained. Undisclosed donations for the next round of funding have already been received from Alexander McQueen, Browns, Coach and ClearPay others. Caroline Rush, CEO of the BFC said:
“Over the last couple of weeks, we have seen an astonishing amount of applications come through from British designer businesses all over the country, asking for help to survive the crisis. The need for support is immense. Our hope is to re-open the fund for future rounds, to help as many businesses as possible, and ensure the future growth and success of the British fashion industry.”
Eligibility and Transparency
According to Fashion Angel, a platform for fashion industry news, application eligibility and criteria include the following:
- the applicant must have an established designer fashion business.
- the collection should consist primarily of womenswear, menswear, accessories, millinery, or fine jewellery – bridalwear and childrenswear is excluded
- the business must be UK based and be registered with Companies House or exist as a sole trader
- the business should be majority-owned by the Designer or Creative Director and not have had any substantial outside equity funding
- the grant money requested should relate to a clear purpose to support the business survival over the next year
If the above criteria are accurate and while this looks good and fair, just how transparent has the BFC been in the allocation of money from the crisis fund? Would it be acceptable, for example, for an established fashion brand with strong ties to the BFC and already receiving significant outside investment from a wealthy investor to go cap in hand to the BFC? Look back to the named recipients and you’ll clearly see why this question has been asked.
Not for Everybody
The Chinese contribution to the British fashion industry is considerable. Emerging designers from China boost the UK economy through education and business operations, plus make notable contributions to London Fashion Week. Despite all this, Chinese names are missing from the BFC’s first-round list of recipients. The plight of China’s independent designers who reside and work in the UK is exacerbated by the fact that they are not eligible for Chinese state support during this challenging time.
When setting up the COVID-19 Crisis Fund, the BFC used money from existing sponsorship grants, putting these on hold. One example is the BFC/GQ Designer Menswear 2019 Fund, in which a two-year deal was signed between China’s e-commerce company, JD.com and the BFC. When this arrangement is due for renewal, will JD.com opt for sponsoring designers in Mainland China rather than pursue a relationship with the BFC? That would be the right move given that in this time of uncertainty and isolation, this promising talent remains unsupported.
A Drop in the Ocean
The BFC estimates that £100 million will be needed to safeguard British fashion talent over the next 18 months. Caroline Rush stated:
“£1 million sounds like a lot of money, but when you split it among so many businesses, it is just a drop in the ocean. Much more needs to be done.”
But fundraising to support designers is tough at the moment. The focus is on ‘life’ and ‘saving lives’, and many brands, including philanthropy efforts from major players like LVMH and Kering, are donating cash, equipment and PPE to hospitals and workers in desperate need. While Rush has commended these acts of generosity, she also feels that the British fashion industry will be in jeopardy without substantial relief, above and beyond that provided by the BFC COVID-19 Crisis Fund. She said:
“As an industry, we now need to come together to make sure we’re protecting the next generation of talent coming through.”
