Investors turn out to be willing to punish the reinforcement of sexism.
Shares of G-III Apparel Group (GIII) , the parent company of Donna Karan and DKNY, fell by as much as 9% in the week after the designer made comments defending Harvey Weinstein, the disgraced Hollywood mogul. Shares from fell from $28.57 Monday morning, Oct. 9 to $25.75 Thursday afternoon, Oct. 12.
"You look at everything all over the world today and how women are dressing and what they are asking by just presenting themselves the way they do. What are they asking for? Trouble," she said in a Daily Mail interview Sunday night at Cinémoi's CinéFashion Film Awards event in Hollywood.
Koran is no longer involved with her namesake brands, which were acquired by G-III for $650 million in 2016 from LVMH Moet Hennessy Louis Vuitton. But that did not hamper the backlash against her labels. An online petition urging Nordstrom, Inc. (JWN) to drop Karan's label has collected nearly 10,000 signatures as of Friday morning, Oct. 13. DKNY is sold exclusively at Macy's Inc. (M) which was not mentioned in the petition.
The designer apologized for her comments shortly after the Daily Mail interview went viral.
"I have spent my life championing women," she said. "My life has been dedicated to dressing and addressing the needs of women, empowering them and promoting equal rights. My statements were taken out of context and do not represent how I feel about the current situation concerning Harvey Weinstein."
G-III declined to comment when Women's Wear Daily reached out Wednesday. But it's not the only company to reel in the wake of the Weinstein scandal. Also jeopardized is Marchesa, a luxury fashion brand co-founded by Weinstein's wife Georgina Chapman, who filed for divorce Tuesday but is reported more concerned about the future of her label, which Weinstein has not-so-secretly supported, both financially and through his influence, for more than a decade.
Marchesa's engagement ring line, for instance, was dropped by jeweler Helzberg Diamonds following news of Weinstein's history of abuse. Marchesa's Spring/Summer 2018 collection preview on Thursday, Oct. 12 was also postponed, according to the HuffPost.
Chapman announced Tuesday that she was divorcing Weinstein after a 10-year marriage. Page Six reported this week that Marchesa has long been supported financially by Weinstein. As the head of Miramax, he would ask female actors to wear the label on the red carpet. Since 2005, at least a handful of actresses appeared publicly in Marchesa gowns after starring in Weinstein-produced flicks, including Renée Zellweger for "Bridget Jones' Diary," Cate Blanchett for "The Aviator," and Freida Pinto for "Miral."
"[He] wasn't exactly subtle about asking Miramax's female stars to wear Marchesa on the red carpet," an anonymous fashion insider told the tabloid. "And if the studio chief of your movie, and potential movies, asked you to wear a certain designer, wouldn't you want to accommodate him?"
Weinstein was also responsible for bringing powerful investors to the brand, including Giuseppe Cipriani, of Cipriani restaurants, and real estate mogul Steve Witkoff.
Multiple sources told People magazine Monday that Chapman is "really mad" but "not even really at Harvey," but rather because she's concerned about the future of Marchesa.
More of What's Trending on TheStreet:
- Not Much Can Go Wrong on Friday the 13th: Market Recon
- Uber Files Court Appeal Over London Transport Officials' License Decision
- Samsung Sees Record Profits, Top Executive Nicknamed 'Mr Chip' Flees
- Trump Defends Executive Order Rolling Back Obamacare as Political Divide Deepens
Editors' pick: Originally published Oct. 13.