Multiple reasons contributed to Kitson's downfall

Los Angeles - Kitson recently announced that it would be closing down as a company. With the closure of the business, the retail chain’s stores would naturally follow suit. Recently, it was disclosed that the reason for the company’s downfall was due to many factors including high rent, financial issues, and fashion demand.

Firstly, the company struggled with financial difficulties. Ultimately, high rent and debt contributed to Kitson’s demise. In 2013, the company was searching for “financing to expand its operations,” as reported by WWD. Because of their monetary strife, the brand sought to receive credit to improve its debts. Successfully, the company received a 15 million dollar credit to help refinance the company. Kitson used the money to expand into more locations and shops. However, earlier this year, the brand was forced to shutter some of those boutiques. The two flagships to take the hit included Kitson’s Beverly Center and Hollywood & Highland locations.

It also didn’t help that the brand was recently sued by Vivienne Westwood’s company. The company, Rio Bravo Inc., sued Kitson for a breach of contract. The complaint included details of a total sum of 41,363 dollars of clothing that was received by Kitson and allegedly not paid. The case, still in progress, will be settled next year in February.

Financial issues helped lead to Kitson's demise

In addition, it seemed that Kitson was too “cutting-edge” to keep up with itself. Frequented by celebrity shoppers regularly, Kitson was expected to have the newest merchandise in stock. “The key to Kitson is they had to constantly discover the up-and-comer, the latest and greatest,” Lloyd Grief, chief executive of Los Angeles investment banking firm Grief & Co., told the L.A. Times about the closure. For the brand, it was difficult to always maintain new labels and discover emerging designers.

In order to save the Kitson name, which has been established since 2000, the company is discussing with interested parties to help save the brand. The remaining of Kitsons’ stores are set to close sometime in January, although their official closure date is not yet set. The brand is also having a blowout sale in order to rid themselves of inventory with up to 60 percent off.

Although it’s still unclear whether or not the company will have to file for a Chapter 11 petition, the company is scheduling to shut down effectively near the end of next month. According to WWD, James Wong, chief restructuring officer of the company, Kitson is “in talks with potential buyers” for the brand. Whether or not someone will come into the picture and save Kitson is still yet to be seen.