Fashions Fade, Style Is Eternal.

Thom Browne Near Bankrupt

The tide is sweeping away menswear designer Thom Browne. The New York based-designer, which is known for avant-garde collection of cropped jackets and ankle-baring pants, is near bankruptcy and in need of a financial suitor, according to sources.

After raking in net sales of only about $5 million last year, Mr. Browne is facing massive debts and a dearth of investors for his eye-catching suits, which typically cost around $5,000, according to sources. Though he operates a small flagship store in TriBeCa, Mr. Browne also sells at high-end department stores such as Bergdorf Goodman, many of which are facing their own financial difficulties and are having trouble attracting customers as well.

“It’s hard enough to find investors for more classic lines, but imagine asking a bunch of suits—in the traditional mold—to invest in the Pee-wee Herman look,” said Susan Scafidi, intellectual property and fashion law professor at Fordham University School of Law. She added that the “high prices and high-water hems only ever appealed to a niche market” that has since dried up.

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