Leslie Fay Case Study
Background
The Leslie Fay Companies was a women’s apparel manufacturer established by Fred Pomerantz, a former Women’s Army Corps uniform maker during World War II. Despite the “volatile and intensely competitive” (Knapp 34) nature of the industry, Leslie Fay grew to have the second largest annual sales compared to any of the other publicly owned women’s apparel manufacturers, only behind Liz Claiborne. Fred Pomerantz hired Paul Polishan for a position in the accounting department where Polishan befriended Pomerantz’s son, John. After Fred Pomerantz’s death in 1982, John Pomerantz became CEO and chairman of the board, having been president of the company and overseeing operations ten years prior. Polishan was also promoted and became the …show more content…
Leslie Fay’s key competitors included Oscar de la Renta, Donna Karan, and others. However, the firm’s top rival was Liz Claiborne, “the only publicly owned women’s apparel manufacturer in the late 1980s that had larger annual sales than Leslie Fay” (Knapp 34). The firm’s principal customers, which were also shared by its competitors, were the large department store chains.
Several industry trends contributed to economic hardship. The most impactful of these trends was the “casualization” (Knapp 35) of America. This was a trend that had developed a few years earlier and was in full force by the late ’80s. Millions of consumers began to shun the traditional notions of women’s fashion and opted instead to dress in more comfortable clothing. This movement began with younger women but then hit women in the 30 to 55 year-old segment, Leslie Fay’s target market. More specifically, this shift toward casual clothing significantly impacted women’s dress sales. In the early 1970s dress sales began to decline as a result of the popularity of pantsuits, and by the late 1980s the shift toward casualwear had permanently damaged the sales of dresses. All of this was bad news for Leslie Fay. Since they were a manufacturer of “stylishly conservative dresses,” (Knapp 34) they were stuck in a current towards casual clothing with a business model attempting to swim
The Leslie Fay Companies was a women’s apparel manufacturer established by Fred Pomerantz, a former Women’s Army Corps uniform maker during World War II. Despite the “volatile and intensely competitive” (Knapp 34) nature of the industry, Leslie Fay grew to have the second largest annual sales compared to any of the other publicly owned women’s apparel manufacturers, only behind Liz Claiborne. Fred Pomerantz hired Paul Polishan for a position in the accounting department where Polishan befriended Pomerantz’s son, John. After Fred Pomerantz’s death in 1982, John Pomerantz became CEO and chairman of the board, having been president of the company and overseeing operations ten years prior. Polishan was also promoted and became the …show more content…
Leslie Fay’s key competitors included Oscar de la Renta, Donna Karan, and others. However, the firm’s top rival was Liz Claiborne, “the only publicly owned women’s apparel manufacturer in the late 1980s that had larger annual sales than Leslie Fay” (Knapp 34). The firm’s principal customers, which were also shared by its competitors, were the large department store chains.
Several industry trends contributed to economic hardship. The most impactful of these trends was the “casualization” (Knapp 35) of America. This was a trend that had developed a few years earlier and was in full force by the late ’80s. Millions of consumers began to shun the traditional notions of women’s fashion and opted instead to dress in more comfortable clothing. This movement began with younger women but then hit women in the 30 to 55 year-old segment, Leslie Fay’s target market. More specifically, this shift toward casual clothing significantly impacted women’s dress sales. In the early 1970s dress sales began to decline as a result of the popularity of pantsuits, and by the late 1980s the shift toward casualwear had permanently damaged the sales of dresses. All of this was bad news for Leslie Fay. Since they were a manufacturer of “stylishly conservative dresses,” (Knapp 34) they were stuck in a current towards casual clothing with a business model attempting to swim