The other day I mentioned on here about how Killstar has fired all of their design team. Well, that was only the tip of the iceberg when it comes to what is happening within the company right now. Yesterday I received a detailed email from my source about all of the insane crap going on inside the company and how it is affecting their bottom line. I’m usually not easily shocked when it comes to tales of workplace drama, but this is different.
That American private equity firm Bertram Capital didn’t outright purchase Killstar, like I had previously stated on another post. Instead they bought a majority stake in the company when the original owner, Tequila Star, wanted capital to expand and bring the company up to scratch. To say that she made a bad financial choice would be the understatement of the century. She chose a company who have no knowledge of alternative subcultures and it really shows.
Tequila Star stepped down as CEO of the company when Bertram Capital came into the picture, and they placed their own person into that role. They also brought in new heads of merchandising, products, etc.. This was done to restructure the company so that it functioned better. This is what the company needed; structure that worked more efficiently so that things could be run more smoothly. However, that is not what has happened.
Since the takeover the company has been struggling. Why? Because they are running it just like any other business, thinking that the same tactics would work for it that they have previously used elsewhere. In the autumn of 2021 they brought in a new head of product, and it became obvious very soon that she was overwhelmed by the role and had no clue as to what she was doing. Instead of listening to the employees and the fans of the brand as to what was wanted and what would work they ignored all of the advice and pushed for collaborations. Remember that horrid Avril Lavigne line of products that came out that everybody, including myself, made fun of? That was her idea.
That alone proved that they hadn’t a clue about punk, goth, emo,etc… subcultures. The fact that they thought that Avril Lavigne was in line with what fans of the brand wanted speaks volumes. They tried bragging about how well the line sold but it was very obvious that they couldn’t move the pieces because they looked like crap. The recent really ugly Dario Argento line is yet another example. I love Argento’s films but I wouldn’t wear that crap even if somebody promised me £100 to do so.
Then on top of all of this they put the head of design, who had been with the company for over five years, on garden leave and then outright fired her. They didn’t replace her until the Spring of 2022, and the guy they chose had no knowledge or interest in alternative designs. He was totally unfit for the role and was gone after a few months. They then brought in somebody else whom they also let go after only a few months.
During all of this they brought in people to try to structure the design team. Predictably these people had no knowledge or respect for alternative styles and subcultures. They created a very hostile work environment; so much so that some of the people within the product and design teams quit.
What happened next? Tequila Star came out of hiding and is now CEO once more. So, basically she fucked around and found out. I don’t pity her at all because she made some very badly informed financial decisions. Even I know about how private equity firms work and how detrimental they can be to the running of a company. The head of products was fired this past April and has not been replaced. My source thinks that Star has been working directly with the designers since she came back. However, things must not be going too well since the entire design team has been suddenly let go.
So, basically Star is trying to bring the company back from the brink of financial disaster but it really is too little too late. The reputation of the brand has been in the sewer since Bertram Capital came into the picture. Line after line of badly designed cheaply made clothing has been pumped out and it shows. Most of the newer pieces are the same silhouettes as older pieces with just new graphic designs being thrown up onto them. There is no originality taking place which is pretty telling. Also, their homeware range is now mostly brought in from suppliers and is not designed in house.
My source has some theories as to what is going to happen next with the company. Apparently they have lines designed for up to this Autumn, so my source thinks that they cut the entire design team in order to appear more solvent when they try to sell the company to a new buyer. This makes some sense and could indeed be what is happening. Another theory is that they will just hire freelance graphic designers and slap new designs onto the same old silhouettes. Lastly, they might just bring in everything from outside suppliers.
Apparently Killstar is making way less money this year than they did last year so it may be too late for Star to steer the company in the right direction. The only people that I feel sorry for in this entire situation are the alternative people who worked for the company and were shafted.
This entire situation is what happens when you let a private equity firm run an alternative focused company; you lose credibility with you core customers who no longer want anything to do with you and your inauthentic ways.
