When Metropark, the streetwear fashion chain launched by Orv Madden (founder of Hot Topic) started in 2004, many in the fashion industry thought this was a brilliant idea for a new subculture, particularly in young men’s denim and streetwear. The chain carried brands such as Obey and True Religion, and was gaining momentum for carrying slightly edgier brands, and grew to the point where it was ready for an IPO around 2008.
However tight credit lines and spending decreases by their intended markets hit Metropark and other retail chains especially hard. This year, Metropark claimed it owed $8.8 million.
Over the years, in reaction to changes in the marketplace, Metropark attempted many changes, from bringing on a new merchandising officer to becoming more creative with their website and social media platforms. However according to Apparel News in an interview with Aaron Levant from Agenda, the change in look for Metropark didn’t match their core reasoning as a fashion retailer for streetwear.
“They were looking for a cleaner look,” said Levant. “Maybe they thought they would broaden their appeal .Now they are on par with other mall retailers.”
For those of us following streetwear, this seemed to be true. The merchandising edge, look, and appeal no longer seemed in sync with changes in the streetwear industry.
As of May 5, Metropark declared bankruptcy and has begun shuttering its stores.
While Metropark’s closing is an indication of a segment of fashion hit hard by the recession, of great concern also is the denim industry, which has had to combat higher manufacturing costs and the rising costs of cotton. Brands, and therefore retailers, continue to weigh-out changes in production and distribution, and moving the costs onto consumers, and or returning to various discounting campaigns. This in turn, is forcing the fashion industry into a major transition, one that includes changes in where pricing structures and sources for manufacturing. But also changes in the schedule of releases of new collections, especially as fast-fashion retailers continue to push trends faster , matching with youth culture’s expectations for new designs.
More on this transition to come in the following months.