Delia's

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This article is about a clothing company. For the genus of butterflies, see Delias.
Delia's, Inc.
Industry Retail
Fate Bankruptcy (in progress)[1]
Founded 1993 (1993) in New York City, NY
Defunct February 2015 (2015-02) (expected)
Headquarters New York City, NY
Number of locations
104[2] (2013)
Key people
Ryan Schreiber (Interim CEO through bankruptcy)
Products Young women and girl's apparel & accessories
Revenue Decrease$21.5 million[2] (2013)
Decrease$20.75 million[2] (2013)
Decrease$21.55 million[2] (2013)
Total assets Decrease$94.4 million[2] (2013)
Subsidiaries Alloy
Website www.delias.com

Delia's, Inc. (stylized as dELiA*s) is a direct marketing and retail company composed of two lifestyle brands primarily targeting girls and young women around the ages of 13 to 19.[3]

Delia's is also popular among college women, as many of its clothing and accessories are mature and affordable for college-age students. It was, in its prime, the leading marketer to teenage girls in the United States, selling to 10-24-year-old females.[4]

Products[edit]

dELiA*s generates revenue by selling apparel (including pants, shorts, skirts, tees, jackets, blazers, and bikini tops and bottoms), accessories, footwear (including shoes and boots), makeup, and room furnishings to teenage consumers through direct mail catalogs, websites, and, for dELiA*s, mall-based specialty retail stores.

History[edit]

The company was launched in 1993 by two Yale University graduates.[5] The company was acquired by Alloy Inc. in 2003, for $50 million.[6][7] The combined company had annual catalog, internet, and retail sales of $300 million. It also had a database of over 20 million names, constituting 30%–40% of U.S. consumers who were 12–18 years old.[7] Alloy then spun off the company in 2005. On December 29, 2005, the company announced that the Securities and Exchange Commission declared effective on the same day the Post-Effective Amendment to its Registration Statement on Form S-1.[8] In January 2013 HRSH Acquisitions LLC bought Alloy Inc, now being marketed as Alloy Apparel, for $3.7 million in cash. HRSH also assumed $3.1 million in liabilities. On December 5, 2014, it announced that it had filed for Chapter 11 bankruptcy protection, and would be liquidating all of its 95 stores. Shortly after, its shares fell more than 80% to $0.02. [9]

Bankruptcy[edit]

For details on bankruptcy, click here

In December 2014, the company announced an agency agreement with Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC, to, among other things, liquidate all merchandise owned by the Company and to dispose of certain furnishings, trade fixtures, equipment and improvements to real property with respect to the Company’s stores. Sales of merchandise under the agreement may begin as early as December 5, 2014. The company tried exploring strategic alternatives to raise financing and/or engage in a sale, merger, or other form of business combination, but the Company’s Board of Directors concluded that it was in the best interests of the Company’s stakeholders to close its retail stores and liquidate its assets.

On December 5, 2014, Tracy Gardner, Chief Executive Officer and a director, and Brian Lex Austin-Gemas, Chief Operating Officer, resigned from their respective positions effective immediately. As of such date, Ryan Schreiber was appointed as President and will continue in his capacity as General Counsel and Secretary, and Edward Brennan was appointed as Chief Financial Officer, having previously served as the Company’s Vice President of Finance.[10][11]

Branding[edit]

One company trademark is its Gen Y understanding, as reflected in its use of the internet for furthering brand identity.[12] It direct-marketed teenage girls, and then in 1998 launched the non-commercialized girls website gURL.com which focuses on issues such and sports and dating, and which it linked to its own homepage.[6][12] In 2001 it sold gURL.com to the parent company of Seventeen Magazine.[6]

References[edit]

  1. ^ "dELiA*s, Inc. To Liquidate". dELiA*s Press Release. 5 December 2014. Retrieved 17 January 2015. 
  2. ^ a b c d e "Annual Report". dELiA*s. Retrieved 17 January 2015. 
  3. ^ Cannon, Susan; Scarano, Christina Sofia (2005). Where to Wear 2006 : Fashion Shopping from A-Z (2006 ed. ed.). New York: Fairchild & Gallagher. ISBN 9780976687795. 
  4. ^ Evans, Joel R.; Berman, Barry (2001). Retail Management : A Strategic Approach (8th ed.). Upper Saddle River, NJ: Prentice Hall. pp. 151, 209–210. ISBN 9780130263346. Retrieved 17 January 2015. 
  5. ^ Delia's Puts Itself Up for Sale – NYTimes.com
  6. ^ a b c New Girl Order: Youth, Gender, and Generation in Contemporary Teen Girls' Media – Caryn E. Murphy
  7. ^ a b Alloy Buys Rival Delia's
  8. ^ "dELiA*s, Inc. Announces Effectiveness of Registration Statement Relating to Its Previously Announced Rights Offering". 
  9. ^ "Delia's Joins Circuit City, Borders Among Retailers in History's Dustbin". 
  10. ^ "dELiA*s, Inc. To Liquidate". dELiA*s Press Releases. Retrieved 17 January 2015. 
  11. ^ "dELiA*s, Inc. and Certain of Its Affiliates File for Chapter 11 Bankruptcy". dELiA*s Press Release. Retrieved 17 January 2015. 
  12. ^ a b Emotional Branding: The New Paradigm for Connecting Brands to People – Marc Gobe

External links[edit]