Us fashion faces a bleak reality: brands collapse amidst economic woes
The American fashion industry is grappling with a crisis of unprecedented scale, as a wave of high-profile bankruptcies exposes deep vulnerabilities within the sector. From Matches and Farfetch to Saks’s recent struggles, the landscape for independent designers is increasingly precarious.
A perfect storm of challenges
Launched in 2022 with ambitious goals, Fashion Trust US (FTUS) aimed to bolster independent American designers. However, four years on, the reality is stark: building and sustaining a brand has become exponentially harder. The economic headwinds – soaring costs, fueled by a global crisis – have hit small brands particularly hard, culminating in the collapses of major online retailers and the restructuring of retail giants.
The fallout: unpaid brands and rising tariffs
As Matches, Farfetch, and Ssense filed for bankruptcy, countless smaller, independent brands found themselves left unpaid. Adding to the pressure, 2025 saw the implementation of tariffs, dramatically reshaping the global fashion map and forcing brands to navigate escalating production and import costs. While cities like Paris and Milan offer robust support, institutional backing in the US remains limited, with no government funding and few awards programs to provide crucial assistance. The CFDA/Vogue Fashion Fund represents the country’s most significant initiative, yet struggles to meet the growing demand.
Ftus: a glimmer of hope, but not enough
Founder Tania Fares recognizes the systemic issues at play, stating that the system is fast-paced and commercially driven, lagging behind the industry’s needs. “There are strong initiatives, but not enough of them – especially given how big the United States is,” she emphasized. FTUS, with its focus on brands operating between two and seven years, seeks to offer a more sustained and strategic form of support, prioritizing businesses with established foundations. This year’s awards totaled $600,000, distributed across four categories, funded by patrons and sponsorships.
Rising talent and a new approach
This year’s ceremony, held in Los Angeles, celebrated winners like Zane Li of Lii, recognizing the importance of mentorship and guidance. The program’s emphasis on connecting designers with experienced executives – including those from Bond Creative MGMT – aims to move beyond simple financial support. “Financial support on its own is not enough,” Fares asserts. “Designers need guidance just as much.” The success of Diotima’s Rachel Scott, whose brand staged its first runway show thanks to FTUS funding, underscores this crucial element.
Looking ahead: building a sustainable ecosystem
Despite the challenges, momentum is building. Applications to FTUS have surged, demonstrating increased awareness of the organization’s mission. As brands like Ashlynn’s and AnOnlyChild navigate the complexities of scaling, partnerships with stylists like Kara Welch and Karla Mizrahio are proving invaluable. The competition is fierce, but FTUS is striving to carve out its own niche, leveraging LA’s vibrant fashion scene. Ultimately, Fares’s vision is to foster a thriving ecosystem where designers can not only receive support but also establish a lasting legacy.