LA suffering from retail anorexia?

With the fashion industry being punched by the economy, even high-end Los Angeles retailers are having trouble finding their saving grace. We already reported about Kira Plastinia and Tracey Ross' deaths, but even larger companies can't manage to hang in there. Retailers want to dump their posh high end spaces onto new takers, too bad their aren't any.

According to WWD, "Ron Herman with stores on Melrose Avenue and in Malibu and Brentwood, is looking to sublease about 2,000 square feet of his estimated 5,000-square-foot store on North Beverly Drive, said Chuck Dembo, a commercial real estate broker involved in the sublease."


Even Serggio Rossi got rid of his newborn Melrose location that was only a year old. Rock & Republic desperately wants to abort its 1,400 sq ft North Rodeo Drive space. Their stuck in a 10 year lease and apparently can't find any takers.

Even glamorous Lisa Kline wants abandon her 2,500 sq ft spot on Beverly Drive. She told WWD, “I don’t think it will ever be like the good old days, when people were spending like crazy,” Kline said. “It’s ugly out there. There’s no fat on my company. My store is anorexic right now.” Well, it seems that Kline and other boutiques like Belle Gray and Kitson are feeding their stores consignment goodies. Kline went on to say, “My budget is so small that, if you want a significant presence in my store, you’re going to be on consignment. Vendors have so much merchandise on their hands that it makes sense to put it in stores on consignment rather than have it sit in a warehouse.”

Consignment is like anorexic fashion rehab. Well...has anyone ever stop to think that maybe a 250% markup isn't practical? FYI: if you knew what a lot of these retailer's products went for at cost or wholesale you'd probably feel robbed. I think someone is going to need an "I Beat Anorexia" shirt!