recession store-ies

Scoop Has Shady Finances, Other Problems

This just in: Scoop is the new Barneys! Financially speaking, not in terms of merchandise. WWD reports Scoop is having trouble paying vendors. Some factors have stopped approving orders, and one lender said he advises vendors to ship “at their own risk.” Worse, the company isn’t even talking to some lenders or providing them with information about how they’re doing financially, which is important in today’s market. One vendor said things looked terrible for Scoop in February and March, but was paid recently. The owners of Scoop say its financial portfolio is “sound.” They acknowledge the company has had “some issues,” but deny the problems still exist.

The marketplace hasn’t been kind to Scoop. The store has difficulty competing with department stores like Bergdorf, which court the same customers, and are forced to mark things down steeply early in the season. Also, Scoop founder Stefani Greenfield left the company last year, and some sources think that has led to a decline in the store’s merchandise. Greenfield had a talent for spotting trends and a keen eye for editing.

In addition to its possible financial problems, Scoop was sued this week by former employees who say they are owed unpaid wages — a problem Barneys doesn’t face, and yet another way they have Scoop beat.

Scoop NYC Feels Credit Squeeze [WWD]

Scoop Has Shady Finances, Other Problems