From Bankruptcy to B Corp Success: The Journey of Frank & Eileen
In the realm of fashion, Audrey McLoghlin’s entrepreneurial journey has been a rollercoaster of triumphs and tribulations. Her first foray into the industry ended in bankruptcy during the tumultuous Great Recession of 2008. However, like a phoenix rising from the ashes, she bounced back with an innovative idea: to create a women’s clothing company using exquisite Italian menswear fabrics. Thus, Frank & Eileen was born, a testament to her resilience, creativity, and unwavering commitment to making a difference.
The Genesis of Frank & Eileen: A Serendipitous Encounter
Inspiration struck McLoghlin when she stumbled upon a book filled with captivating Italian menswear fabrics. The book ignited a spark within her, inspiring her to reinvent the classic button-up shirt for women. She named her fledgling company after her Irish grandparents, Frank and Eileen, and the first silhouette, aptly named the Barry, was a tribute to her father. For the first five years, the Barry reigned supreme, accounting for an astounding 99% of the company’s business, a testament to its timeless design and exceptional quality.
Expanding the Brand: From the Barry to a Full-Fledged Collection
After five years of focusing solely on the Barry, McLoghlin recognized the need to expand her brand’s offerings. She introduced the Eileen, a softer silhouette crafted from the same luxurious Albini Group fabric, providing customers with more options to suit their unique styles. Recognizing the growing demand for knitwear, she also added a collection of pieces sewn in Los Angeles using locally sourced fabrics. Today, Frank & Eileen has established a strong presence in Nordstrom and a network of specialty stores, catering to a discerning clientele who appreciate its unique designs, impeccable craftsmanship, and unwavering commitment to quality.
The Unforeseen Challenge: Navigating the COVID-19 Storm
The COVID-19 pandemic dealt a devastating blow to many businesses, and Frank & Eileen was no exception. In the early days of the pandemic, the company faced a staggering loss of $11 million in revenue within a mere 10-day span. Undeterred, McLoghlin swiftly devised a battle plan to weather the storm. She accelerated product development, expanded the product team, and bolstered the company’s e-commerce presence, recognizing the shift towards online shopping. Her strategic moves proved successful, enabling Frank & Eileen to emerge from the pandemic stronger than ever before.
Achieving B Corp Certification: A Commitment to Social and Environmental Responsibility
Amidst the challenges posed by the pandemic, Frank & Eileen embarked on a transformative journey towards achieving B Corp certification. This prestigious certification recognizes companies that meet rigorous standards of verified performance, accountability, and transparency in various areas, including employee benefits, supply chain practices, and charitable giving. In 2021, Frank & Eileen proudly received its B Corp certification, securing the second-highest impact score for a globally recognized U.S. fashion brand, a testament to its unwavering commitment to ethical and sustainable business practices.
Philanthropic Endeavors: Empowering Women Entrepreneurs of the Future
Frank & Eileen is renowned not only for its exceptional clothing but also for its generous philanthropic efforts. The company has pledged a substantial $10 million over a 10-year period to educate and empower women entrepreneurs of the future. This commitment manifests in the establishment of fellowships and programs at prestigious graduate schools, including Stanford Graduate School of Business and MIT Sloan School of Management. Additionally, Frank & Eileen has partnered with Babson College to offer a scholarship program, funding a deserving female MBA candidate through a two-year program. These initiatives reflect McLoghlin’s deep-rooted belief in the transformative power of education and her unwavering dedication to fostering a more equitable and inclusive business landscape.
Retaining Ownership and Building Strategic Partnerships
McLoghlin has demonstrated remarkable resilience in retaining ownership of her company, which now employs a dedicated team of approximately 40 individuals. She attributes her success to the invaluable support of two key partners: Merchant Factors and the Albini Group. Merchant Factors provided crucial loans, while the Albini Group extended generous terms for invoices, allowing Frank & Eileen to navigate financial challenges and maintain a sustainable cash flow.
The Ron Herman Connection: A Catalyst for Growth
Ron Herman, the venerable Los Angeles clothing store, played a pivotal role in the early success of Frank & Eileen. Recognizing the unique design, exceptional fabric, and innovative finishing process of the Barry shirt, Herman took a chance on the emerging brand. Frank & Eileen garments were prominently featured at Ron Herman’s L.A. boutique until its closure in 2022, and the brand continues to be sold in all 30 Ron Herman stores in Japan, a testament to its enduring popularity and global appeal.
Continued Growth and Expansion: A Bright Future Ahead
Frank & Eileen continues to experience steady growth, with its largest specialty stores located in Canada and the United States. The company’s clothing resonates with discerning customers who appreciate its unique silhouettes, high-quality fabrics, and meticulous attention to detail. As Frank & Eileen embarks on the next chapter of its journey, it remains committed to delivering exceptional products, upholding its ethical and sustainable business practices, and making a positive impact on the communities it serves.
Conclusion: A Legacy of Resilience, Innovation, and Social Responsibility
Audrey McLoghlin’s journey with Frank & Eileen is a captivating tale of resilience, creativity, and an unwavering commitment to making a difference. Despite facing adversity, she has built a thriving company that is recognized for its high-quality clothing, unwavering commitment to sustainability, and impactful philanthropic efforts. Frank & Eileen stands as a shining example of how a business can thrive while also making a positive impact on the world.