Global Fashion Roundup: Fashion Retailer Boohoo Takes A Huge Blow, Virgil Abloh Raises $1 Million For Black Fashion Students, And Many More
This week, the fashion industry saw a lot of activity, from seeing the shares of online fashion retailers, Boohoo, drop drastically and rise slightly due to allegations levelled against it to Ellen Macarthur’s Make Fashion Circular welcoming 6 new members.
We bring to you global fashion news from this week in case you missed it.
Fast Fashion Retailer, Boohoo, Takes A Huge Blow
One of the fastest-growing fashion retailers in Britain, Boohoo, founded by Mahmud Kamani in 2006, took a huge blow this week after allegations of worker exploitation surfaced. The company's brands include Nasty Gal, PrettyLittleThing, MissPap, and BoohooMAN, amongst others.
The company which was one of the few that benefited from the lockdown in the U.K saw its share prices drop drastically this week. Following the allegations, the share price of Boohoo fell by nearly 50% from a high $5.24 in mid-June to a low $2.64 by Wednesday which effectively wiped out over $2 billion from the company's value.
An investigation which was carried out by Sunday Times of London found that workers at the factory that supplied clothing to Boohoo were allegedly paid far less than the national mandated minimum wage.
However, after Boohoo's City broker held a call with major investors in the UK and US on Wednesday night, the company recovered nearly $9 million in value.
Flipkart Invests $35 Million in Arvind Fashions To Target Youth
The Walmart-owned firm, Flipkart, announced on Thursday that it has invested $35 million in Arvind Fashions for a significant minority stake in one of the decades-old Indian firm's subsidiaries. The firm did this in a bid to tighten its grip on fashion apparels in the world's second-largest internet market.
Flipkart, which competes with Amazon in India, has established its dominance in India's fashion industry through the earlier acquisition of Myntra and Jabong. The company announced that it was acquiring a stake in Arvind Fashion' Arvind Youth Brand which owns the Flying Machine Brand in India.
In a statement, the Chief Executive Officer of Flipkart said, “Flying Machine is a brand that is known in households across India, popular with the youth and synonymous with fashion and style. Through this investment, we look forward to partnering with the team at Arvind Youth Brands to continue to develop the demand for its portfolio of products and enhance the strong brand value that has been established over the last few decades."
According to J. Suresh, the Managing Director and Chief Executive of Arvind Fashion, the partnership aims to help Arvind Fashion improve its online growth strategy.
Virgil Abloh Raises $1 Million Scholarship For Black Fashion Students
Virgil Abloh announced on Thursday that he has raised $1 million for Black fashion students. Virgil who is the Founder of luxury streetwear label Off-White and the Artistic Director of men's wear at Louis Vuitton has entered a long-term partnership with the Fashion Scholarship Fund.
"I've always been passionate about giving the next generation of students the same foundation for success that was given to me.” - Virgil Abloh
The partnership with birthed the Virgil Abloh "Post Modern" Scholarship Fund is funded by the designer himself and funds from his partners - Evian, Farfetch, Louis Vuitton, and New Guards Group. The sum will provide scholarships to between 100 and 200 students of academic promise of Black, African American, or African descent.
Naomi Campbell Calls For fashion Industry To Enforce Inclusion
British supermodel, Naomi Campbell, on Monday said they the fashion industry must start "enforcing inclusion" on the catwalk and beyond. She made this comment in a video to open Paris Fashion Week which, like many others, had to hold digitally.
The supermodel who was dressed in a T-shirt with the legend "Phenomenally Black" said the time has come to build a fairer industry. She called on fashion to learn from the Black Lives Matter movement.
Campbell, who is very open about her struggles in the fashion industry as a black model, said the debate will last as long as it takes. She also stated that the fashion industry must include permanently the multiple identities that make up our countries.
Make Fashion Circular Welcomes 6 New Members
Ellen Macarthur’s Make Fashion Circular has welcomed 6 new members from across the fashion industry to strive towards creating a circular economy for fashion. The new participants include Fast Retailing, Guess, Lee, Nordstrom, Vestiaire Collective, and Wrangler.
Of these new participants, Guess, Lee, and Wrangler are also part of Make Fashion Circular's Jeans Redesign, created to transform the way jeans are produced in line with guidelines created by the Foundation and 40 denim experts across the fashion industry. The project aims to ensure jeans last longer, can be easily recycled, and are made in a way that is better for the environment and health of the producers.