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Feature
Fashioning Empires
Catherine Curan
03/01/2007

Hansen has assembled a team and built a corporate structure. She recruited Andreas Melbostad, a former design director at Donna Karan and Calvin Klein, as creative director. She also moved the company’s headquarters from a Seventh Avenue office spread over several floors to a Meatpacking District studio where 24 employees, from the CEO to the sewing team, share an open space. With Hansen and Melbostad now in place, Dell rarely visits the office. Instead, she keeps in touch via email and phone.

Fashion Houses Divided
Both Burch and Cord began their businesses in their Manhattan apartments, but soon realized they needed to create a real corporate infrastructure. Burch received help from her ex-husband in setting up manufacturing processes and an office in Asia—he had once run an apparel company that produced goods in China. But she lacked a warehouse, or even a sense of how much fabric to order; at one point she found herself surrounded by bolts of fabric.

Burch sought to recruit a president during her first year in business, initially approaching DKNY’s Mary Wang. But in March 2005, after Wang had opted to stay with Donna Karan, Burch hired Brigitte Kleine, former president of the women’s collection at Michael Kors. Kleine helped Burch assemble a five-person design team and manage growth. Kleine says she took the leap from an established firm to a start-up because she saw real potential in Burch and her brand. "She had been known for the tunic, but I was also impressed when I saw the breadth of the collection," Kleine says.

By hiring Kleine and building an infrastructure, Burch created a platform for future growth. Her clothes are now sold in some 250 locations across the U.S., as well as at Harvey Nichols in London and Dubai. Burch’s designs debuted at four Bloomingdale’s locations last fall and were among the best sellers in their department, according to Frank Doroff, senior executive vice president of ready-to-wear. Kleine says the brand has sell-throughs (the amount of merchandise sold at full price) of 60 percent and higher in an industry where anything better than 50 percent is considered good. Burch owns six freestanding stores and expects to open three each year over the next five years. She now produces everything from swimwear and candles to shoes. Last year, she sold 90,000 pairs of $195 ballet flats, adorned with her logo, within three months of their launch.

Not all of her plans are unfolding smoothly, however. After the breakup of her marriage, she and her ex-husband are still trying to determine his role in the firm.

Cord also enjoyed rapid growth after spending less than $100,000 to develop a few samples of Travels with Tiger accessories. She wooed business by serving home-baked banana bread to leading retailers, including Neiman Marcus president Burt Tanksy, who viewed the collection at her home. Filling orders, however, required her to ship boxes of merchandise from her doorman building. To avoid inconveniencing her neighbors, Cord hired a driver and made deliveries in the middle of the night in an oversize van.

When this approach became unbearable, she decided to partner with leather house G-III, whose executives contacted her. In 2004, Cord signed a long-term deal with the company, which is better known for low-budget football jackets. "I was able to expand and grow," Cord says. "I never could have filled those orders out of my house; I would have been thrown out."

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