Entireworld, the direct-to-consumer fashion brand that Scott Sternberg founded with Band of Outsiders, is closing.
In an Instagram statement, the company stated that it was experiencing a shortage of capital investment and a failure to raise funds. It also said that tough competition and a lack in capital investment were to blame. All items on the website are now up for sale to generate cash and liquidate as soon as possible.
The brand’s most iconic product was a sweatshirt and pant made of Japanese cotton terry. However, the brand branched out to more basic products, which proved to be a huge hit during the pandemic. Comfortwear became more popular. According to Business Insider, loungewear sales grew by 433 percent during early lockdown.
Initial sales boom
In March 2020, more than 1,000 sweat suits were sold. This was compared to 46 sweat suits per day. Sales climbed steadily during lockdown and increased by 600 percent in the past year. In August, the New York Times published a flattering article called “Sweatpants Forever” in which Sternberg was described as being in the right spot at the right time in order to grow his fledgling DTC company.
It was not to be. Sternberg, who had closed Band of Outsiders, publicly condemned the wholesale business model that, at its peak, was selling 15,000,000 dollars per year to 250 international retailers. The brand was financially dependent on third-party stores, which led to accounts being closed or unable to pay, bankruptcy or orders being downsized. Band of Outsider was a successful retailer like Barney’s in its early days. However, when Barney’s went bankrupt, small brands that depended on timely payments were left behind. Direct-to-consumer models have their challenges. They must forecast demand and produce in advance. Then, they must invest in marketing to reach the exact same customers as everyone else. Many brands overlook the importance of a retail presence and instead focus on profitability over growth.
Sternberg uploaded a video when he launched Entireworld 2018 in which he asked, “Why would I want to even start a fashion label right now? When there is so many available?” He explained that commodity fashion, the things we lived in, had lost the sublime – the attention paid to quality fabric and local production.
Sternberg, a Los Angeles-based designer, said, “I fell into fashion after it hit me how unique it offered.” Sternberg posted on Instagram that he had “built an intricate world through super personal brand vision, meticulously designed all of those products, and if it’s done right, people will literally be living in it every single day.”
Header 2A fundraising deal was canceled
“Just weeks ago, we were closing an acquistion deal that would have given us the chance to realize the financial potential of our brand after years of unsuccessful fundraising. The deal collapsed in a flash and we were left with no other options than to close the shop and leave our factories without a roof over our heads.