People like to pretend that they will make sacrifices for their ideals.
In reality, only a very small percentage of people will pay more or inconvenience themselves because of any specific cause. Sure, people will boycott obvious things.
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You might not eat veal and will become horrified at theme parks that make whales and other animals perform for people, but those aren’t really things that come up that often. If a sacrifice actually requires —well, sacrifice — then most people will say they support it, but not actually do anything.
That’s why many Americans still opt for the convenience of bottled water and will happily take a single-use plastic straw.
People might pay a tiny bit more for a product that supports their ideals, but most companies built around doing good fail terribly. Yes, most people support the idea of paying a living wage to the people who pick our coffee or make it at your local chain, but only if that does not impact how much they pay.
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Not everyone is selfish, but most people have limited budgets, and they can’t really afford (or choose not to afford) supporting ideal-driven companies,. That’s why building a company around a cause is often a drag on the business that can’t be overcome once the intitial wave of “why they’re doing a nice thing” publicity wears off.
Another retailer built around activism and doing the right thing has filed for Chapter 11 bankruptcy protection.
Idealistic businesses face one more challenge than their rivals.
Image source: Getty Images
Fashion chain tried to create opportunity
It’s fine for a retail chain to have a mission, and it can even attract attention for the brand. The problem is that many social issues cost money to fix, and that means higher prices.
You can see that the way one fashion retailer has chosen to operate might actually do that.
“ABLE exists to create better opportunities for women. Did you know that women make up 80% of the workers in the fashion industry? In an industry that has become (in)famous for poor working conditions and pay, ABLE has seen firsthand how much our community of customers cares about providing high-quality jobs, living wages, and safe working conditions for the people making their pieces,” the company shared on its website.
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That’s a noble goal, but as the company continues, you can see how its mission might not always be good for its customers, or at least for their wallets.
“We work to create safe, dignified jobs both in Nashville, where our home office, jewelry studio, and fulfillment center are, and also around the world, through our partnerships with value-aligned manufacturers,” the company continued.
Women-led fashion retailer files Chapter 11 bankruptcy
Fashionable, Inc., which operates under the name ABLE, filed for Chapter 11 bankruptcy protection on April 9 in the Middle District of Tennessee. The company reported between $1 million and $10 million in assets and the same range of liabilities.
“The filing lists between 100-199 creditors, with major claims including CFT Clear Finance Technology Corp. ($945,667), California Department of Tax and Fee Administration ($499,362), and several international suppliers including manufacturers in Ethiopia, Hong Kong, and India. The company operates from facilities in Nashville at 5022 Centennial Blvd. and has assets at 7335 Cockrill Blvd.,” RX Consulting reported on Twitter, the former X.
The company does plan to emerge from Chapter 11 bankruptcy and continue operations. Its store has not closed and its website continues to operate.
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The Chapter 11 bankruptcy filing is only mentioned on the retailer’s FAQ page.
“This moment marks a challenging but necessary turning point for us — one that we believe will ultimately lead to greater stability and strength. We remain focused on our mission and the values that brought us here, and we’re incredibly grateful to have your support as we navigate this next chapter. We are reorganizing, not closing. Chapter 11 is a court-supervised, management-led process designed to help us restructure and move forward,” it shared.
