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Something about a designer brand going bankrupt delights me.

There is something about a designer brand going bankrupt that just delights the hell out of me. Bettina Liano the Australian “design house” famous for it’s $250 skinny jeans called in the administrators this week. While I never like to see an Australian business fail, especially one that employs 90 people, it was a business based around selling jeans that can be bought from target for $20-30 for $250.  I don’t really understand how can go bankrupt doing that? It’s not like they weren’t selling either? What are their overheads?

My delight stems from the fact that from where I sit they don’t sell a product that’s any better than one that can be purchased for much much cheaper.  It’s also a product that one purchases merely for status. They perpetuate an unrealistic female body image and promote the idea that a womans worth can be measure by what jeans she has on. The whole thing is just completely at odds with my principals.

Good bye Bettina Liano ruthless exploiter of our subconcious desires for societal status.

About Bankruptcy Ben

Bankruptcy Ben a is late 20 something Brisbanite. He's 3 generation finance, 2'nd generation insolvency. Still it hasn't stopped him making a lot of financial mistakes. He was a dietitian for 2 years and still has an interest in food. However the finance bug bit and he now works and blogs full time in bankruptcy and blogging. His blog posts are about his quest to cut his expenses, bankruptcy, debt agreements and other ways to deal with debt. His mentors are (though he's never met them) Noel Whittaker, Benjamin Graham and Warren Buffet.

Comments

  1. I don’t get the whole designer fashion thing. Maybe, it’s because I’m a guy and a fairly cheap one at that. But, paying a fortune for Chineese goods with a fancy label doesn’t make any sense to me. The amount women are willing to pay for designer shoes and handbags amazes me. The same can be said for men and their designer suits. Where I live, most of the people with real money walk around in shorts or Levis. They don’t need to impress anyone, because they are successful and everyone knows it.

  2. Daniel Giarrusso

    Pretty nasty post by you. For someone who supposedly would know about economics your simple deduction that these jeans cost $25 is just dumb. The body image thing is a different topic that your entitled to have your opinion but your comment on the cost of the jeans is simplistic and typical of someone who assumes that all retailers make a fortune! You obviously have never manufactured anything in Australia. Denim is expensive to buy not to mention have it worked into different washes plus patterns that will need to be graded to maybe ten sizes, studs buttons , zips and then you put in a store where rent, electricity plus staff,wages as well Payg tax and there super have to be paid. Australia is expensive to live in and an expensive place to do business , have a go at the coffee shops, you probably go everyday to a coffee shop and think your pretty cool having your latte and bagging people that have a go at business and then fail. How much does your coffee cost have you ever asked? Try 50 cent’s for a $3.50- $4 latte but hey you probably look cool sipping you coffee whilst typing away at your laptop.

  3. Thanks Daniel. It is hard to be in business in Australia, 9 out of 10 businesses fail within the first 24 months. I should know I work in the insolvency industry. Business isn’t easy but i’m not sure how true your argument about manufacturing holds true the Australian Retail Indusry Association chief, Michale Lonie when interview about the collapse stated that “the cost of labour overseas were biting”. As far as designer labels go we recieve over 2000 calls/month from people with an average credit card debt of $32,000.00. Consumerism is a masive part of this. Buying crap we don’t need to impress people who don’t care sometimes with money we don’t have. A pair of jeans bought for $25 from target will last me just as long as a designer pair and I can’t rationalise it. FYI I make my cup of instant in a travel mug and bring it to work with me because it’s not cool paying 1460 after tax dollars a year on lattes when I have a mortgage.

  4. sam

    Bettina Liano makes everything in Australia. THAT is what you are paying for………dont complain when we have no industry left here.

  5. keeley dunn

    I have purchased three pairs of Bettina Liano jeans over the past 6 years. The first pair I wore for 6 years before they finally developed a hole which made them unwearable earlier this year.
    It was my opinion before buying such expensive jeans that they would be a waste of money in comparison to Just Jeans whose jeans I had previously bought however
    1. the jeans lasted a great many years more than my Just Jeans purchases which use to last a year
    2. the denim is of a much softer and more wearable quality than Just Jeans
    3. the fabric provides a much better fit for women (men would not be so interested in that attribute as judging by husband men don’t wear skin tight jeans usually; he has purchased Hugo Boss and Just Jeans and did not find the more expensive Hugo Boss any better than Just Jeans)
    4. as previously posted the jeans are made in Australia which makes them arguably unique as I have not noticed any other item of clothing manufactured here from such chainstores as Sportscraft Sportsgirl CR Trenery Saba etc.
    5.while some of her jeans are made for slim figures she has the curvy fit range and again I can’t say that her jeans are any more skewed towards the slimmer figure than Just Jeans or Guess.

    In relation to Target I can’t comment on the durability of adult jeans but my 4 year old daughter wears them and unfortunately they develop holes in the knees well before she grows out of them ie about 3 months. I am considering trying the more expensive Esprit Children for this reason as the Target jeans are not good value for money.

    I gather from talking to one of BL’s shop assistants that the jeans are very popular and it is her other clothing that does not ‘move’

    I don’t consider her jeans a status brand particularly as they have minimal visible labelling. When the likes of Marie Claire does a jeans special you can see that there are quite a few brands in this price range and above.

    So I am sad to see BL is having financial problems and I suspect what the shopper will end up with is the same product made in China but sold for the same price. Keeley Dunn

  6. I’m still wearing target jeans I bought 5 years ago. Anyway if you buy a $250 pair of jeans and it lasts you 5 years and I buy 1 pair of $50 jeans every year for 5 years, I’m still better off mathematically.

  7. Michael

    They have dumped Brisbane and Perth and as at the time I am writing are only in Sydney and Melbourne which says a lot, I don’t think it is fair for jobs, however, I do agree with some of what has been posted, so if the stores shrink from 6 to whatever or they close Sydney stores then its for real. Maybe she should stick to just being in Myer.

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