Zombie retail brands are coming back from the dead
Hyland points to C. Wonder, which after going bankrupt and shuttering all of its stores in January, announced it would resurface on QVC in 2016, with the photogenic Brad Goreski as the new creative director.
Former preteen mainstay Limited Too is coming back from the dead in 2016.
And teen retailer Delia's is also making a comeback after going out of business.
So, why is this happening?
"When you buy brands that have already created that awareness and have that loyal customer base, you're starting in a much better place. Start-ups are incredibly difficult, particularly in today's environment," Robert D'Loren, CEO of Xcel Brands (which swept up C. Wonder, as WWD reported) told Hyland.
"There's certainly more brand awareness than one could build over a short period of time," Liz Dunn, CEO of Talmage Advisors, told Hyland, "versus just saying 'I'm going to start a preppy, value-oriented retailer from scratch."
In other words, entrepreneurs think they're better off investing in a retailer with an existing fan base.