Thought-about a retail success story after surviving the Covid pandemic, a once-promising model has now joined the rising listing of retail casualties.
Dealing with the unforgiving realities of shifting markets and relentless competitors, its closure marks the top of a six-year run and the demise of one other size- and gender-inclusive label.
Based in 2019 by then-college college students Cami Téllez and Jack DeFuria, Parade aimed to problem conventional lingerie giants like Victoria’s Secret by providing extra inclusive, body-positive, and gender-fluid merchandise.
The model shortly resonated with Gen Z by way of its use of eye-grabbing branding and social media advertising, cultivating a web-based group throughout fashionable platforms resembling Instagram.
As of October 28, Parade has completely shut down operations, in accordance with a discover on its web site, which now not processes purchases.
“Parade was created with the intention to welcome you all to express yourself in full-spectrum color with confidence, and we hope we were able to create that space for you,” wrote Parade in a press release.
Parade shuts down all operations amid retail challenges.
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Parade’s momentum and early monetary struggles
Regardless of early momentum and a faithful following, Parade’s troubles started to floor lengthy earlier than its closure.
In 2021, the model opened its first bodily retailer in Manhattan’s SoHo district, initially as a pop-up that later grew to become a everlasting website. Nonetheless, the shop closed a 12 months later after its lease expired.
Whereas a major expense, given its location in one of many priciest neighborhoods in New York, the shop was meant to function a advertising transfer, boosting model visibility slightly than revenue.
Parade continued to broaden into bodily retail, touchdown a partnership with Goal (TGT) in 2023 to promote its merchandise throughout 400 shops and on-line.
But behind the scenes, main modifications have been underway. That very same 12 months, Téllez stepped down as CEO, following Parade’s acquisition by Ariela & Associates, the father or mother firm of Fruit of the Loom.
Monetary challenges had been mounting for years. By the top of 2021, Parade generated $29 million in product sales however spent almost 60% of its income on advertising, up from 30% the earlier 12 months.
In 2022, the corporate started chopping prices, decreasing its EBIT losses to $4.4 million within the second quarter of 2023, towards $19 million in product sales, in accordance with Enterprise of Vogue.
Parade faces main competitors from celeb manufacturers
When Parade launched, Victoria’s Secret (VSCO) was dropping cultural relevance, dealing with backlash, and declining gross sales after the cancellation of its annual vogue present in 2019. The timing appeared preferrred for a brand new, inclusive model to fill the market’s hole, however the identical probability additionally attracted highly effective rivals.
That very same 12 months, Rihanna’s Savage x Fenty and Kim Kardashian’s Skims launched, two manufacturers with large celeb backing and savvy social media methods concentrating on related audiences, which Parade struggled to match.
Extra Retail Closures:
- Fashionable low cost retailer pronounces closure amid monetary struggles
- 100-year-old grocery chain closes all shops in a number of states
- One other out of doors retail chain pronounces retailer closures
“Social media doesn’t work the way many marketers think it does. The mere act of endorsing a brand does not affect a customer’s behavior or lead to increased purchasing, nor does it spur purchasing by friends,” mentioned Harvard Enterprise Overview.
Getting consideration or mentions will not be the identical as driving gross sales.
“Social media activity isn’t the same as driving sales,” mentioned Small Enterprise Development Coach Terry Carney. “If your content isn’t built to convert, all you’re doing is entertaining. And last I checked, entertainment doesn’t pay the bills.”
Parade will not be the one underwear model that struggled
- Cuup: Launched in late 2018 as a direct-to-consumer (DTC) intimates model, centered on minimal designs, prolonged sizing.
- Acquired by FullBeauty Manufacturers in 2023 as a part of technique to broaden its intimates/plus‑dimension providing.
- Standing: Nonetheless working below its new proprietor
Supply: Fashionista - Knickey (now rebranded to Subset): Based 2018. Started as sustainable DTC underwear and intimates model from Canada; expanded sizes, males’s line, lounge class.
- Slightly than closing, the model is pivoting and rebranding (Subset).
Supply: modernretail.co - Thinx: Interval‑underwear model constructed on a social mission based in 2013. Confronted main repute points in 2017 involving founder allegations which impacted model belief.
- Nonetheless operational in some type, however instance of DTC intimates dealing with existential challenges.
Supply: Gloss - Understance: Canadian intimates/underwear model with inclusive sizing.
- Reddit posts in 2025 point out the corporate instructed stock clearance and seems to be winding down U.S. operations.
- The corporate’s web site says it has “paused” accepting new orders.
Supply: Understance
The tough actuality of startup survival
Whereas some startups have developed into multi-billion-dollar success tales, the chances are overwhelmingly stacked towards their survival.
As much as 90% of startups fail, with round 10% shutting down within the first 12 months and roughly 70% failing inside the first 5 years, in accordance with Exploring Subjects’ Startup Failure Price Statistics.
“A startup is in essence, a business experimentwith potential. This means that real startups are prone to failure by definition,” mentioned DotaHaven Founder Kyril Kotashev.
“They are testing assumptions, and it’s very likely these assumptions are wrong. The more innovative the startup, the riskier the assumptions and the more likely it is to fail.”
Nonetheless, there’s cause for optimism, as first-time startup founders have successful charge of 18%, and historical past has proven that a lot of immediately’s family names started as small ventures.
Profitable startup corporations
- Apple: 1976
- Amazon: 1994
- Etsy: 2005
- Shopify: 2006
- Shein: 2008
- Glossier: 2014
Associated: Goal pronounces a serious change affecting its total enterprise
