Yesterday, Phi announced it would shutter owing to the economic climate. Funded by computer magnate Michael Dell's wife, Susan Dell, the label was praised by critics and adored by socialites like Vanessa Traina and Dree Hemingway. However, Lauren Sherman on the Fashion Beat reminds us that good press and exposure don't always translate into sales. We often popped into the Phi boutique on Greene Street, but 90 percent of the time we were, awkwardly, the only ones in the store, reluctantly refusing the complimentary Champagne while tucking painfully high price tags back into perfectly spaced garments.
Phi's CEO, Julia Hansen, said the decision to close Phi was based on "the overarching economic climate and the downward pressure on luxury goods over the next 12 to 24 months."
“It’s just very difficult to look forward with confidence against the opportunity in that market,” she said. “The realization is that for a smaller brand, it’s going to be a very challenging time even beyond 2010.”
She added that Dell, who wasn't involved in Phi's day-to-day operations, agreed it was time to close the label. Sherman reports:
As a source familiar with the situation told me this morning, “It was just too niche. Great design, very hip and cool. But it appealed to a very limited audience.”
The source went on to say that Susan Dell was still pouring quite a bit of money into the company; she didn’t want to fund it any more.
How much could it be for a Dell, right? The Dells pour lots of money into charitable causes and things to benefit their community in Austin, Texas, where Amy Odell's from (great work on the JCC, guys!). Maybe funding a bondage-y, New York–cool label is one of those flashy things rich people don't feel comfortable doing anymore — like throwing parties, buying money clips at Tiffany's, or owning a yacht that changes color in the sun like Roberto Cavalli's.
Expect to find items on sale in the Phi store through January and a big warehouse sale at the end of next month.
Most Viewed Stories
Bernie Sanders Wore the Only Appropriate Outfit to Trump’s Inauguration
Kellyanne Conway Goes With a Subtle Look for the Inauguration
This Conspiracy Theory Will Change How You Feel About the Bachelor Villain
Here’s the Official List of Speakers for the Women’s March on Washington
15 Protest Sign Ideas for the Women’s March on Washington
The Ultimate Guide to Preparing for the Women’s March
Michelle Obama’s Face Perfectly Sums Up How You’re Feeling Today
Thousands of Women Are Descending Upon Washington D.C. for the Women’s March
The Complicated, Controversial, Historic, Inspiring Women’s March
Melania Trump Wears Ralph Lauren on Inauguration Day
From Our Partners
powered by PubExchange
Latest News from The CutMelania Trump Wears Hervé Pierre to the Inaugural Balls
The former model collaborated with the designer.‘Smells Like Boys’: A Night at the DeploraBall
Partying in Trump’s America.Inauguration Day in Washington Is Like a Nightmare Twitter Thread
People have come from around America to shout at each other.Melania Trump’s White House Bio Talks a Lot About Her Modeling Experience
And also plugs her Melania™ Timepieces & Jewelry collection on QVC.The Best Street Style From Paris Men’s Fashion Week
Baby pink, camo, and plenty of puffers.Everyone Is Handling This Week Differently
Another brave sartorial choice from baby boy Bieber.Bernie Sanders Wore the Only Appropriate Outfit to Trump’s Inauguration
Très chic, Bernard.The Complicated, Controversial, Historic, Inspiring Women’s March
The movement survives not in spite of its cacophony, but because of it.Thousands of Women Are Descending Upon Washington D.C. for the Women’s March
Via plane, train, and automobile.Broad City’s Abbi and Ilana Prepare for the Trumpocalypse
“Pence looks like a wooden doll from the ‘50s.”
It’s not her first.Michelle Obama’s Face Perfectly Sums Up How You’re Feeling Today
The Obamas and the Trumps met at the White House before the swearing-in ceremony.Melania Trump Wears Ralph Lauren on Inauguration Day
The pale-blue suit is drawing comparisons to Jackie Kennedy.How to Be Safe When Researching Your Abortion Online
Because our digital records are being used against us.These Artworks Capture Female Rage Over a Trump Inauguration
80 women contributed to the exhibit “Uprise / Angry Women” in Tribeca.Protesters Around the World Call for ‘Bridges Not Walls’ in Response to Trump’s Inauguration
Protesters unfurled banners on bridges across the world.Kellyanne Conway Goes With a Subtle Look for the Inauguration
She described her Gucci coat as “Trump revolutionary wear.”Why the Election of 9 Black Female Judges in Alabama Matters
For a state that still has segregationist language in its constitution, it was a surprise.Shia LaBeouf Is Doing a 4-Year-Long Anti-Trump Livestream Event
It’s entitled HE WILL NOT DIVIDE US.The Divided States of America
Don’t assume you know your rights.