Is Intermix Going Out of Business?
The luxury women’s clothing and accessories retailer, Intermix, recently announced it will go out of business. Now, the news has become a matter of concern for so many customers as well as fashion enthusiasts on what led to such a drastic decision and how this favorite brand is going to be affected. Intermix is a go-to destination for chic fashionistas, carrying stylish collections from top designers like Balmain, Givenchy, and Valentino.
Post the rise of overnight e-commerce giants like Amazon, the retail market is not an easy business environment. Not to forget, the consumers’ preferences have shifted towards e-business portals as well. The COVID-19 pandemic has proved to be another harsh blow for traditional brick-and-mortar outlets, and many retailers have long been bitten the dust.
Intermix Company History:
Started by Khajak Keledjian and Haro Keledjian in 1993, InterMix had a singular birthplace in the city of Toronto, Canada. The buzzword for InterMix, then, was “curation,” the very powerful tool with which the store hastened popularity by a highly concentrated mix of established luxury designer pieces and avant-garde new contemporaries.
In 2012, the company acquired Intermix for $130 million and took its selling power to more than 40 stores throughout the United States. Under the flagship of Gap, Inc., the brand continued to soar by engaging in further collaborative efforts and partnerships with some of the world’s most renowned fashion icons, such as Kate Moss and Jennifer Lopez. Read More: Box Truck Business
Positive Indicators and Warning Signs in an Intermix Business
A few positive indicators and warning signs bring up issues about the future of Intermix. Here is an overview of the main pointers that recommend possible difficulty, as well as signs that things probably won’t be as desperate as they appear.
Intermix Rumors to File Chapter 11 Bankruptcy:
Further rumors surround Intermix heading for bankruptcy Chapter 11, a procedure that protects companies from creditors as they reorganize their debts and finances. It is in all honesty the extreme thing that may help the brand cut down debt while streamlining operations to be revived stronger in the future.
Website Still Active:
A good sign for Intermix is that its website is online and still open for orders. This would imply that the company is indeed operational not closing its brick-and-mortar operations, along with the e-commerce channel, like the rest of the retailers. Customers can still shop their favorite designer pieces from the website of Intermix, hoping that in some shape or form, the brand continues.
Intermix Shut down All Stores Except a Couple:
Another reason red flags are raised about Intermix is that most of its physical stores are closed, leaving only a few open. It could be that those few open stores are not doing well and are also at risk of closure. This can also indicate that Gap Inc. is seeking to minimize the losses that it makes by opening very few profitable stores.
How Will This Affect Customers and Employees?
Naturally, the shutting of Intermix stores is going to impact both customers and workers alike. Customers who have always shopped in Intermix and taken pride in the brand are likely to react sharply and negatively to this decision, especially those who enjoy shopping at the store; others will face some friction while trying to return or exchange some recently purchased goods acquired from the physical store.
Regarding employees, more than 300 jobs reportedly will be affected by the closures. This translates to a significant number of employees losing their jobs and then being forced to face a much tougher time elsewhere trying to find another job. Gap Inc. states they will try to reassign affected workers to other positions in the company, but this will not be possible for everyone.
Does Intermix Facing Financial Problems?
Intermix has in the past faced some financial struggles. In fact, with COVID-19, it is no different. The shutdown of all physical stores and transformation into an e-commerce company only gives a strong indication of such.
However, it’s also possible that Gap Inc. parent company, had it believed the brand could be maintained for a longer period because they could achieve profitability shortly, would have perhaps been able to sustain the brand for a more extended period. It is still unclear whether severe financial problems plagued the brand or whether this was a decision meant to fit in with Gap’s broad restructuring plan.
Is Intermix Still in Business??
Yes, it still exists, and the online version of Intermix continues to sell to people interested in designer pieces. As all physical stores close down, customers can keep shopping for their favorite pieces on their website. But for how long does this brand stay an e-commerce only, and is there a plan in line for future collaborations or even partnerships?
Thus, while shut down of Intermix’s physical stores may be the most un-chic news for most people, it should not be the death knell for this brand. Being a Gap Inc., there is always a good chance that Intermix may one day come back in all its old glory. In the meantime, fashion enthusiasts can shop from it through its online sites and stay updated on eventual news changes.
Overall, at the end of Intermix’s journey, we might have realized that even good brands may face a lot sometimes with difficulty in adjusting to changing market conditions.
Businesses need and have to be flexible and to change during periods as turbulent as the pandemic period. And as a consumer, we may also play our part by supporting our favorite brands by good shopping and understanding their struggles. And who knows maybe next year, with the onslaught of the e-commerce boom in the recent past, we might see Intermix regain its initial glory as a raging online giant. Only time will tell. But good luck to us, and here’s to keeping our fingers crossed and hoping that all this works to perfection!
FAQS:
Will Intermix be closing all of its physical stores?
Yes, except for a few locations, all Intermix physical stores will be closing shortly.
Can I still shop at Intermix?
Yes, customers can continue to shop online through Intermix’s website for now.
Is Intermix filing for bankruptcy?
There have been rumors that Intermix may file for Chapter 11 bankruptcy as a means to restructure its debts and finances.
How many jobs will be affected by the store closures?
Over 300 employees are estimated to be impacted by the closure of Intermix physical stores.
Conclusion:
In conclusion, Intermix had a pretty good run in the fashion sector, but these issues have brought it to its knees and shut its physical stores. Perhaps not such a drastic reversal of fortunes, but indeed, the brand still boasts an active website and an opportunity for restructuring under Chapter 11 bankruptcy. Customers will still be able to support the brand by shopping online and keeping an eye out for new developments.
As with any business, we can learn from Intermix’s journey and be prepared for unwelcome changes in the market. Only time will tell what is in store for Intermix, but until then, we appreciate their impact on fashion and hope for a strong comeback in the future. So, keep on celebrating our favorite brands and being abreast of the changing face of the fashion business.
