“Memo is one of the main reasons I had to do this,” he said. “I don’t mind if somebody calls me and says I have a customer looking for something special. But when it sits in the store for a few months just to fill in the window, that is killer," said Henry Dunay in an exclusive interview with Rob Bates of JCK Magazine.
Read the whole interview here.
Also declaring Chapter 11 this week is David Webb, Madison Avenue jewelry house extraordinaire.
In case you haven't been keeping up in the designer financial news, Michael Beaudry and JPPS Inc., the parent company for Penny Preville, also filed Chapter 11 bankrupcy protection this month. Doris Panos filed at the end of April.
Henry is the first one to mention memo as part of the problem -- but I've got to wonder how big a part it played in the others', as well. One well known designer we talked with calls it the "cancer of our industry."
When will the industry openly discuss this?
We're going to run a webinar on this topic -- from the perspecitve of protecting yourself in this dicey realm. Email me at cindy@jewelersresource.com for more info and stay tuned to our blog and twitter and facebook and enewsletters for specifics.
I completely agree w memo, and consignment, being the problem. I think it's a majority of the problem, not just part. How did designers let this happen? It's a travesty that deigners must take all of the financial risk, while stores mark their product up 220-400%, keep it for months at an inflated price and then send it back when it doesn't sell.
This needs to change. If stores/galleries are required to buy at least half of what they show, they will choose more carefully and sell the product at a more reasonable mark-up.
Posted by: Karen Mitchell | June 25, 2009 at 10:48 AM
This is a world wide problem, at least is is the same in my corner of the world. It is really hard to find a store that will actually purchase jewelry from designers, the markup is also high and you end up taking all (or most) of the risk.
I also would love to know why we let this happen.
Posted by: Ruth | June 25, 2009 at 12:23 PM