UK Chancellor Rachel Reeves has unveiled her latest budget — or the Spring Statement as it’s officially known — and while she stuck to earlier promises not to increase taxes on working people, there was little good news to be had.
Reuters
For a start, it looks like the economy will remain sluggish and that’s likely to depressed consumer spending. Reeves said this year’s growth estimate for the UK economy has been halved to 1% by the Office for Budget Responsibility (OBR).
And while earlier news on Wednesday about inflation was encouraging, it remains above what the OBR had predicted back in the autumn, although Reeves said it should be on target to reach the desired 2% by 2027. That’s down from a peak of 11% that it reached under the last government.
Much of the heavy lifting in terms of big announcements affecting fashion and retail was done in the Autumn Budget so there were few surprises this time. There was also little said about issues that directly affect the fashion and retail sectors. There was no mention of that big bugbear for the industry, business rates, nor of any intention to restore tax-free shopping for tourists.
The Autumn Budget had said small retail businesses will receive a 40% relief on business rates with the current 75% discount expiring next month.
The Chancellor clearly has little wiggle room and re-emphasised that “the global economy has become more uncertain”. This has impacted the UK economy but she said that the country’s “fiscal rules are non-negotiable. They are the embodiment of this government’s unwavering commitment to bring stability to our economy”. That contrasts with some other countries, such as Germany for instance, where certain rules have been torn up in the current circumstances.
Reeves did announce “increasing capital spending by an average of £2 billion per year compared to the Autumn to drive growth in our economy and deliver in full our vital commitments on defence” but said “overall, day-to-day spending will be reduced by £6.1 billion by 2029-30 and it will now grow by an average of 1.2% a year above inflation compared to 1.3% in the Autumn”.
There are cuts being made to welfare spending that the OBR said will save £4.8 billion and that will affect the spending power of a large number of people in lower income groups.
Importantly though, despite the general gloom, Reeves added: “I am pleased that the OBR confirm today that Real Household Disposable Income will now grow this year at almost twice the rate expected in the autumn. And living standards will rise twice as fast this parliament compared to the last.”
And the industry reaction? Helen Dickinson, chief executive of the British Retail Consortium, repeated her concerns about tax-raising policies that were announced back in the autumn and also said: “We welcome the Chancellor’s commitment to ‘drive growth in the economy’ and the retail industry is keen to play its part in this mission. As the Chancellor aims to drive down the number of those who are ‘economically inactive’, there is a need for better routes back into work for those that want or need it after a period of inactivity. The retail industry provides a perfect solution. It is filled with people joining and returning to the workforce. It offers local, flexible jobs, often requiring few qualifications, and part-time jobs that allow people to find their feet, work as much or as little as they are able, and balance work with other important life commitments.
“But the costs from the Budget, and uncertainty about how the Employment Rights Bill and new business rates policy will be implemented, mean it will be much harder for retailers to keep creating these kinds of jobs. So the government should avoid unintended consequences and provide clarity about the implementation of these policies as soon as possible.”
And Dee Corsi, head of the New west End Company, added: “Today’s Spring Statement underscores the harsh reality; that the UK’s economic outlook remains challenging and the support many businesses urgently need is still missing.While we welcome government action to support growth through initiatives like the recent Planning and Infrastructure Bill, for businesses on flagship high streets like those we represent in the West End, there’s an urgent need for more holistic policies to reduce the burdens they face.
“Key to this is the looming hike in business rates, which is a major barrier to the government’s growth agenda, threatening to hit retail, hospitality, and leisure businesses hardest, with potentially devastating consequences. Just as important is the continued absence of tax-free shopping, which cost West End businesses £640m last year, hampering the UK’s global competitiveness and stalling any growth potential.
“We urge the Government to reconsider their proposed reforms [in order] to protect businesses on flagship UK high streets, attract inward investment, and support national and local growth.”
The Marseille commercial court ordered the judicial liquidation of French denim brand Kaporal on March 27, marking the end of the company’s operations. The ruling follows an 18-month management-led takeover and affects 280 employees.
Kaporal shuts down – Kaporal
As of March 28, Kaporal’s e-commerce site displays a closure message: “Permanently closed. This site is no longer active. Thank you for your trust and support. See you soon, here or somewhere else!”
The liquidation ruling definitively halts the company’s activity. At its peak, Kaporal operated over 60 stores in France. According to the local newspaper, La Provence, the court did not permit business continuation under new terms.
The ruling brings an end to the company’s short-lived recovery effort. In July 2023, three senior managers took over the brand through a court-approved restructuring plan, aiming to save 78 out of 85 stores and retain 395 of the 434 employees. Since then, the company has further scaled back, focusing on restoring its denim heritage and reconnecting with its Southern French roots.
“Since the takeover, the team worked relentlessly to revive the brand, with a renewed focus on style and the popular, warm values that define Kaporal,” the company stated in a letter shared with FashionNetwork.com.
“By returning to our denim roots and embracing bold collaborations, we reignited creative energy, clarified our brand identity, and reinforced our position in the market. We managed to modernize the offer without losing Kaporal’s authenticity—rooted in Mediterranean culture and, especially, its love for Marseille. Unfortunately, today’s economic conditions make it impossible to continue this work within the current framework.”
Kaporal had set an ambitious revenue target of €60 million, requiring sustained double-digit growth, which it ultimately failed to achieve. Although broader conditions in the French fashion retail sector have been challenging, the company has not disclosed specific reasons behind the decision to cease operations.
In the same letter, the leadership expressed gratitude to teams in France and abroad, acknowledging their commitment and resilience: “Their dedication kept the business going and drove the necessary transformation. We also want to thank our partners, suppliers, and customers for their unwavering support and trust.”
It remains unclear whether a buyer will step in to acquire Kaporal’s assets, including the brand name.
Founded in 2004 by a Marseille-based family with roots in denim manufacturing, Kaporal posted €99 million in revenue in 2022 but struggled with persistent losses, which led to its restructuring. In 2023, founder Laurent Emsellem—who led the company until 2013, following its acquisition by TowerBrook Capital Partners—made an unsuccessful attempt to repurchase the brand, proposing to retain 281 employees and 70% of the store network.
Other Marseille-based denim players, including Golden Blue, owner of Le Temps des Cerises, expressed interest in the brand. The case also drew attention from Guerrida—operator of Frishop and Tritex—and off-price chain Noz, which explored acquiring Kaporal’s stock.
In a major strategic change Dsquared2 has ended its long-time licensing agreement with Staff International, the key operating company of Italian fashion billionaire Renzo Rosso. Who, in turn, has already sued the designers in response.
Dean & Dan Caten, by Giampaolo Sgura
However, six hours after DSquared2 announced the termination of its long-time licensing agreement with Staff International, the licensor sued the fashion house for breach of contract. The conflicting statements suggest that this issue looks like becoming a major court battle pitting one of Italy’s largest fashion empires and one of Milan’s hottest runway brands.
“Dsquared2 Group announces the immediate termination of its licensing agreement with Staff International S.p.A. Consequently, the Group will assume direct control over the production and distribution of its Ready-to-Wear collections,” the Milan-based house said in a terse release Saturday.
“This transition takes effect immediately and will commence with the upcoming Pre-Collection Spring/Summer 2026 sales campaign,” added Dsquared2, which was founded by twin brothers Dean and Dan Caten over three decades ago.
Staff International is the key production wing of Only The Brave, the holding company of Rosso, which also owns Diesel, Marni, Maison Margiela and Jil Sander, as well as the manufauring license of Viktor&Rolf.
“Dsquared2 Group expresses its sincere gratitude to all those who have contributed to this collaboration and looks forward to fostering continued partnerships in the future,” the release added.
However, later Saturday, Rosso’s group responded forcefully: “Staff International reiterates its conviction that the license agreement is fully effective and confirms its intention to fully execute it until its natural expiry. Therefore, the company firmly rejects any possibility of early termination of the contractual relationship, and believes that legal conditions for early termination do not exist.”
“Staff International will continue to act with the utmost transparency and determination to protect its rights, honour its contractual commitments and safeguard its reputation, and reserves the right to take any further action,” it added.
The agreement – which is said to last 25 years, with Staff International dates back to 2002, and helped fuel the spectacular development of Dsquared2, the last runway brand in Milan to have grown into a major global fashion brand.
Born in Willowdale, Ontario, Dean and Dan Caten (Catenacci, originally) began their career path in fashion by moving to New York in 1983 to attend Parson’s School of Design. In 1991 they arrived in Italy where in 1994, after numerous collaborations with major fashion houses, they first staged their debut runway collection. It marked the first in a long line of runway extravaganzas that would capture the attention of journalists and buyers for their unique brand of fashion, music and theatre.
The Catens went on to build a multi-million dollar business. And to dress everyone from Madonna in her iconic western video clip, “Don’t Tell Me”, to Beyoncé for her Super Bowl performance. The duo also has an impressive range, all the way to dressing the four-time English Premiership Champions, Manchester City. And a great HQ, a former electric energy headquarters converted into office, show-space, inn, gym and rooftop restaurant with swimming pool. They have become one of the city’s great fashion institutions without ever losing the DNA of the Wild North. And famed for their ovations, where they take their bow in matching outfits – whether disco dragoons, Klondike trappers or matinee idols.
Leave it to the Canadian duo to stage an epic 30th anniversary show in Milan this past season, the cast marching out of a wrecked brick garage, or arriving in a series of mighty wheels. From armored personnel carriers and Ford Mustang convertibles to an all-silver DeLorean and a vintage Rolls Royce – all took turns arriving in the huge warehouse done up like a nightclub.
All of the Caten’s great archetypes got an outing. Mad saucy trapper girls in giant puffers and lots of legs; a trio of rockers with Kiss goth makeup but in three-piece suits; Klondike gold diggers off to an all-night rave; sexy vampy rock goddesses with bumster leather pants and fur coats with trains; and a beautiful black rodeo gal with mini cocktail made of bands of Western belts. Leading to the arrival with sirens of NYC police car, from which emerged a dominatrix leather police captain played by Brigitte Nielsen escorted two white collar criminals. You guessed it – Dean and Dan. Before, amid huge roars, JT and Doechii took the floor in a call and response duet surrounded by the entire cast.
Renzo Rosso’s fashion holding company OTB suffered a setback in 2024, seeing revenues fall 4.4 percent at constant exchange rates to 1.8 billion euros, recording EBITDA of 276 million euros and EBIT of 44 million euros. Retail (+7.4 percent), Japan (+16.3 percent) and North America (+13.3 percent) held up. Among the brands in the portfolio, Maison Margiela (+4.6 percent) and Diesel (+3.2 percent) performed positively.
In the past fiscal year, the Vicenza-based company sustained investments of 77 million euros, with a focus on the expansion of the retail network and major innovation projects.
The possible departure of DSqyared2 will be seen as a setback for Rosso, who has long praised the brand as a dynamic creative force. Like every season, Rosso sat front row at the 30thanniversary show in Milan on February 25th.
“Staff International will continue to act with the utmost transparency and determination to protect its rights, honour its contractual commitments and safeguard its reputation, and reserves the right to take any further action,” read the last paragraph in Rosso’s company statement.
In a major strategic change Dsquared2 has ended its long-time licensing agreement with Staff International, the key operating company of Italian fashion billionaire Renzo Rosso.
Dean & Dan Caten, by Giampaolo Sgura
“Dsquared2 Group announces the immediate termination of its licensing agreement with Staff International S.p.A. Consequently, the Group will assume direct control over the production and distribution of its Ready-to-Wear collections,” the Milan-based house said in a terse release Saturday.
“This transition takes effect immediately and will commence with the upcoming Pre-Collection Spring/Summer 2026 sales campaign,” added Dsquared2, which was founded by twin brothers Dean and Dan Caten over three decades ago.
Staff International is the key production wing of Only The Brave, the holding company of Rosso, which also owns Diesel, Marni, Maison Margiela and Jil Sander, as well as the manufauring license of Viktor&Rolf.
“Dsquared2 Group expresses its sincere gratitude to all those who have contributed to this collaboration and looks forward to fostering continued partnerships in the future,” the release added.
The agreement with Staff International dates back to 2002, and helped fuel the spectacular development of Dsquared2, the last runway brand in Milan to have grown into a major global fashion brand.
Born in Willowdale, Ontario, Dean and Dan Caten (Catenacci, originally) began their career path in fashion by moving to New York in 1983 to attend Parson’s School of Design. In 1991 they arrived in Italy where in 1994, after numerous collaborations with major fashion houses, they first staged their debut runway collection. It marked the first in a long line of runway extravaganzas that would capture the attention of journalists and buyers for their unique brand of fashion, music and theatre.
The Catens went on to build a multi-million dollar business. And to dress everyone from Madonna in her iconic western video clip, “Don’t Tell Me”, to Beyoncé for her Super Bowl performance. The duo also has an impressive range, all the way to dressing the four-time English Premiership Champions, Manchester City. And a great HQ, a former electric energy headquarters converted into office, show-space, inn, gym and rooftop restaurant with swimming pool. They have become one of the city’s great fashion institutions without every losing the DNA of the Wild North. And famed for their ovations, where they take their bow in matching outfits – whether disco dragoons, Klondike trappers or matinee idols.
Leave it to the Canadian duo to stage an epic 30th anniversary show in Milan this past season, the cast marching out of a wrecked brick garage, or arriving in a series of mighty wheels. From armored personnel carriers and Ford Mustang convertibles to an all-silver DeLorean and a vintage Rolls Royce – all took turns arriving in the huge warehouse done up like a nightclub.
All of the Caten’s great archetypes got an outing. Mad saucy trapper girls in giant puffers and lots of legs; a trio of rockers with Kiss goth makeup but in three-piece suits; Klondike gold diggers off to an all-night rave; sexy vampy rock goddesses with bumster leather pants and fur coats with trains; and a beautiful black rodeo gal with mini cocktail made of bands of Western belts. Leading to the arrival with sirens of NYC police car, from which a dominatrix leather police captain played by Brigitte Nielsen escorted two white collar criminals. You guessed it – Dean and Dan.
And amid huge roars, JT and Doechii took the floor in a call and response duet surrounded by the entire cast.
Renzo Rosso’s fashion holding company OTB suffered a setback in 2024, seeing revenues fall 4.4 percent at constant exchange rates to 1.8 billion euros, recording EBITDA of 276 million euros and EBIT of 44 million euros. Retail (+7.4 percent), Japan (+16.3 percent) and North America (+13.3 percent) held up. Among the brands in the portfolio, Maison Margiela (+4.6 percent) and Diesel (+3.2 percent) performed positively.
In the past fiscal year, the Vicenza-based company sustained investments of 77 million euros, with a focus on the expansion of the retail network and major innovation projects.
The departure of DSqyared2 will be seen as a setback for Rosso, who has long praised the brand as a dynamic creative force.
Entertainment8 years ago