What Went Wrong With Balenciaga and Alexander Wang?

Kering is starting to vet Wang’s successor and says that they’re receptive to the idea of hiring a lesser-known talent, pointing to the success of Gucci’s in-house appointment of Alessandro Michele following Frida Giannini’s departure.

The American designer of street-smart clothing was hired in late 2012 to replace French designer Nicolas Ghesquiere, who left for competitor Louis Vuitton after 15 years. It’s been widely reported that Wang is looking for an investor for his privately held Alexander Wang brand, perhaps causing him to reevaluate his current role at Balenciaga.

The minimalist designer’s future has been the subject of speculation since earlier this month, when WWD reported Kering’s chief financial officer Jean-Marc Duplaix told journalists there were “ongoing discussions” about his contract. In addition to Balenciaga, Wang continued to design for his own major label, and it would seem likely that one or other would have suffered as a result. However, since Wang came aboard, Balenciaga has had double digit growth. The house is profitable, generating revenues of $387 million. Red carpet placements included Kerry Washington (with child) at the 2014 Golden Globes and Lady Gaga at the 2015 Met Gala.

After nearly 3 years in charge of the iconic label established by fashion great Cristobal Balenciaga, it is understood via industry sources that Balenciaga and its holding company Kering had decided not to renew Wang’s contract and his last collection for the house would be unveiled during Paris Fashion Week from 29 September to 7 October. For now, all we can do is sit, gossip, and wait for official word.