- The organization feels disorganized, and that lack of clarity appears to stem from leadership at the corporate level. Senior management often seems disconnected from day-to-day operations and lacks a clear strategic direction.
- All employees do not trust CEO and do not feel she is qualified since she was a nepotism hire. Decision-making does not always appear to be grounded in strong financial or analytical oversight by her.
- Head of design should not have intimate relationship with fit model
-The company continues to allocate significant funds toward nonessential expenses, including a new office space, holiday décor, and events, despite broader operational challenges.
- Last year, the company aggressively expanded by opening numerous new stores, only to begin closing many of them this year. This rapid expansion followed by contraction suggests insufficient long-term planning.
- Product quality is also a concern. Much of the assortment relies heavily on lower-cost polyester fabrics, which impacts overall brand perception.
- Large volumes of product are purchased that are not sold goods, leading to excess stock that must later be heavily discounted or donated, resulting in margin loss.
