Us fashion faces a brutal reality: brands crumble as support lags
The American fashion landscape is teetering on the brink, as a wave of bankruptcies slams independent designers and exposes a critical gap in industry support. From Matches and Farfetch to Saks, the past four years have proven a relentless gauntlet of economic headwinds and systemic failures.
A perfect storm of crisis
Launched in 2022, Fashion Trust US (FTUS) aimed to provide a lifeline for emerging American brands, but the initial optimism has faded. A sharp economic downturn triggered soaring costs, disproportionately impacting smaller labels. The first cohort of FTUS finalists quickly realized they needed more than just recognition – they craved tangible assistance.
The bleeding numbers
Since 2023, the dominoes have begun to fall. Multibrand retailers like Matches, Farfetch and Ssense have filed for bankruptcy, followed swiftly by Saks Global, formed from the acquisition of Neiman Marcus and Bergdorf Goodman. These failures underscore a broader vulnerability within the sector, with smaller, independent brands bearing the brunt of unpaid debts.
Tariffs and rising costs
Adding fuel to the fire, 2025 saw the imposition of tariffs, reshaping global trade routes and pushing up production, import, and sales costs. While cities like Paris and Milan continue to offer robust support schemes, the US remains woefully behind, lacking substantial government funding and effective awards programs. The CFDA/Vogue Fashion Fund provides a modicum of support, but falls short of addressing the scale of the challenge.
Ftus: a glimmer of hope, but not enough
Founder Tania Fares recognized this shortfall and established FTUS to bolster American designers. However, she argues the system – fast-paced and commercially driven – hasn’t kept pace. “It’s a big country, and there are strong initiatives, but not enough of them,” she stated recently. The organization focuses on brands operating between two and seven years, a deliberate strategy to cultivate a more established base before offering intensive support.
A focus on substance, not just recognition
Beyond simply awarding prizes, FTUS prioritizes a holistic approach, examining brand structure and financials to ensure a robust foundation for growth. Recent winners, including Lii and Diotima, have leveraged the $600,000 prize pool to implement critical Business strategies—from runway shows to team expansion. The mentorship program, led by executive search firm Bond Creative MGMT, further strengthens the value proposition.
Beyond the money: the power of community
But the most impactful element, according to Rachel Scott of Diotima, is the sense of community. “It’s not just one broad mentor that will help try to fix everything,” she explained. “We put them in for three months at a time to focus on the finances, to focus on merchandising.it’s very important for us for these businesses to grow and scale and to succeed.” This year’s 16 finalists—representing a diverse range of disciplines, including jewelry, accessories, and sustainability—demonstrate the breadth of talent emerging within the US.
A strategic shift
The decision to host the FTUS Awards in Los Angeles, rather than New York, reflects a calculated effort to carve out a distinct identity. With a pool of diverse stylists—including Jamie Mizrahio and Karla Welch—and a strong celebrity presence, FTUS is working to establish credibility and visibility within the industry. Despite the challenges, the number of applications has surged to over 650 this year, a testament to the growing awareness of the organization.
Building momentum
Ultimately, FTUS’s success hinges on cultivating a sustainable ecosystem—one that fosters growth, provides strategic guidance, and attracts investment. As Ashlynn Park, a recent CFDA/Google American Emerging Designer Award winner, noted, “After the recognition, I’ve been thinking about the structure of the Business.” The organization’s future, and the future of American fashion, depends on its ability to deliver on that promise.