Wednesday, October 17, 2007

Reform of the Fashion Design Council of Canada

We would like to bring to your attention an issue which is of importance to the city of Toronto and to the fashion industry.

We believe the current leadership at the FDCC is inconsistent with the values and goals which make Toronto and Canada the best place to operate a fashion related business.

Many in the community have faced inappropriate conduct from Robin Kay – President of the Fashion Design Council of Canada.

In this letter we will provide details of our concerns and actions we feel are most appropriate to provide the needed reform.


Our intention is not to disrupt the upcoming L'Oreal Fashion Week but ensure that there is constructive debate about the keys issues concerning the fashion industry and much needed reform of the FDCC.



What are the real benefits to designers ?

Every year the fashion community is dazzled by fashion and models on the runway at the semi annual L'Oreal Fashion Week.; but there is a need to look past all the glitz and glam and examine at a deeper level the activities and value that L'Oreal Fashion Week and the FDCC provide to the fashion industry.


Is anyone buying ?

The buying season is over when fashion week starts. Budgets are already allocated for the season. The publicity does create brand awareness for consumers but the effectiveness is lost as consumers will not be able to purchase the outfits in stores for another 6 months. Designers have long complained that without sales designers simply do not achieve a financial ROI from fashion week in Toronto.


Designers invest anywhere from $5,000 to $20,000 for FDCC registration fees, models, PR, stylists, etc. to participate in L'Oreal Fashion week.

The sizeable investment needs to drive sales for their collections.


*** The individuals quoted in this letter are quoted as part of the research conducted in providing an assessment of the FDCC. The quotations are all published on the web with links to the complete articles. The quotations in no way signifies the quoted individual's support of this letter.


A quotation from the Toronto Fashion Incubator Blog – November 2006

BUYER BE AWARE: FDCC president Robin Kay avows fashion week is not a buyers' show but bang-for-buck, wouldn't it be more beneficial if buyers were around to gain awareness of new labels they might want to sign on in future? The total number of registered buyers was 33 and the total number of registered retailers was 14. (Although designers also sent out invitations, raising the total.)

http://www.fashionincubator.com/happenings/newsletter/tfi-news-november-2006.shtml

(according to the city of Toronto Website there are more than 4,600 Toronto fashion retail stores )

Stylist Derick Chetty October 19, 2006

While I'm all for international press covering L'Oreal Fashion Week, I have to wonder if it is of any value to anyone, especially the designers. Yes, you can argue it's great exposure, building brand awareness etc., but does it translate into dollars and cents? Most of the designers are small operations with no international sales offices. And there's just a handful of buyers from local retailers that attend the shows. So how is coverage in a European magazine/website/newspaper helping their bottom line when they can barely get their lines sold here in Canada? Derick Chetty

http://thestar.blogs.com/nakedlunch/2006/10/loreal_fashion_.html


Membership

The FDCC operating procedures are not consistent with FDCC bylaws and the legal requirements of operating a not for profit corporation in Canada.

As stated on the FDCC website

www.lorealfashionweek.ca/fdcc/fdcc.html


The FDCC is a national Canadian organization dedicated to branding fashion in Canada. Through realizing that mission, the FDCC

Promotes the diverse fabric of Canadian fashion design talent.

  • Links buyers with designers, media with buzz, and business executives with product.
  • And produces an event in the elite category of Fashion Week that includes fashion aficionados from around the world.

    Since 1999, this non-profit organization has focused its energy on high-quality events, publicity and membership. Outside of L'Oréal Fashion Week, it takes part in global events to enhance the knowledge and awareness of the Canadian fashion design industry. The FDCC contains a Board of Directors which seats successful and nationally recognized Canadian fashion and business executives.


The membership form and all information pertaining to membership has disappeared from the FDCC website. As a not for profit association for the fashion industry it has a mandate to consistently recruit and serve new members in industry. Why has the membership form been removed from the FDCC website ?

We have included the membership form as an attachment to this email.

Membership for designers:


Stated in the FDCC Designer Information Package for L'Oreal Fashion Week - designers must be a member of the FDCC to showcase at L'oreal Fashion week.

Designers we interviewed and who have showcased at L'Oreal Fashion Week in previous years have yet to receive any official acknowledgement of membership, invitation to member meetings or audited financial statements.


The FDCC has not given proper notice, as governed by law, to participating designers of an annual general meeting where members traditionally review the audited financial statements and annual report for the past year and vote on key issues impacting the organization for the ensuing year.


Corporations Canada the definition of a not for profit.


Not-for-profit organizations are created to benefit the community. Activities of a not-for-profit organization may be of a trade, patriotic, national, charitable, philanthropic, religious, professional, or athletic nature without monetary gain. Directors, officers and/or members of a not-for-profit corporation do not own the corporation or its assets. The organization may not be operated for financial gain for its members, officers or directors. In certain circumstances a not-for-profit organization may engage in revenue producing activities and earn a profit, however these activities are to be conducted solely to further the principal objectives of the organization.

Members must approve changes made to the by-laws by the corporation's directors before they have effect

  • Members must have notice of meetings.
  • Each member is entitled to one vote at a meeting of members.
  • Board of directors shall be elected at each annual meeting
  • A director of a not for profit organization can be removed office by a special vote of the members

Accountability

Board members of a not for profit corporation are accountable to its members, a number of industry professionals believe Robin Kay is not accountable to anyone.


Tim Blanks – fashion file

Toronto Highlights - Spring/Summer 2007

"It may have a ways to go in comparison to its older, more fashionable cousins, but like an awkward defiant teen trying to find its identity amongst Paris, Milan and New York, Toronto Fashion Week thumbs its nose at the naysayers, without feeling the need to answer to anyone."

http://www.fashionfile.com/designers/Highlights.html



All not-for profit directors are potentially accountable to someone or some entity, often to multiple parties. This accountability can take many forms: annual general meetings where members can vote to replace directors they have lost confidence in or make changes to governance documents that affect the board; administrative or judicial penalties imposed owing to regulatory non-compliance; reporting requirements to funders; and court actions mounted by dissatisfied stakeholders.


New legislation by the Government which Enhances and Protects Members' Rights: The new Act will also enhance and protect member rights. By doing so, it will promote active membership and encourage members to monitor the directors' activities. Members will have the power to enforce their rights and oversee the activities of their organizations. They will have the power to access corporate records (most importantly, the financial statements); access membership lists (subject to certain restrictions); request a meeting and to make proposals; use the oppression remedy and the compliance order to protect their rights; and use the derivative action remedy to enforce the rights of the corporation. The oppression remedy allows members to seek relief from a court if they believe their rights have been "oppressed". A derivative action allows members to launch a suit, in the name of the corporation itself, if they believe that directors or officers of the corporation have acted improperly.

http://strategis.gc.ca/epic/site/cilp-pdci.nsf/en/cl00754e.html

Structure of the FDCC

Robin Kay does not own the Fashion Design Council of Canada (the FDCC evolved from Association of Ontario Fashion Designers) nor do the board of directors own the FDCC. A not for profit is a corporation without share capital (shares cannot be issued) -- the real owners of the FDCC are its members – the fashion industry of Canada, including designers, photographers, models, media, retailers, anyone who one way or another supports Canadian fashion has a stake in the FDCC.

Membership must be open to all fashion industry professionals

Where does all of the money go ?


We have heard figures of anywhere form $400,000 to 2 million sponsorship from L'Oreal.

How much does Ford Canada and the other sponsors contribute ?

Fashion Design Council of Canada (FDCC) received Government funding of $145,000 for projects from 2003 to 2007

Members, the fashion community and taxpayers have a right to know the funds raised and where it is spent. How much of the funds actually go towards Robin Kay's salary and the hiring for her publicists ? How are the contracts allocated for the FDCC ?

False and fraudulent statement

Robin Kay is discouraging companies to sponsor designers to produce their shows during fashion week and instead sponsor the FDCC directly. Producing shows for fashion week are quite costly and includes expenses for models, mandatory publicists, press kits, props and additional incidental expenses.

Her statement that the FDCC does not charge designers is completely false. A simple survey of designers who have participated will reveal that the FDCC charges designers to participate in L'Oreal Fashion Week.


Interview with Robin Kay and Bizbash magazine

Unfortunately, we're facing the issue of sponsors bypassing the FDCC and connecting to individual designers. It's guerrilla or piggyback marketing, and it's costing us money. We raise funds to put on the shows, and we don't charge the designers, so we need all the sponsor income we can get. The companies that are supporting individual designers could just as easily support us. We have a sponsorship package that offers no end of opportunities for them to gain exposure on-site at the shows. More important, the public relations machine we've created at FDCC would generate media exposure for them that they wouldn't otherwise get.

http://www.bizbash.com/toronto/content/editorial/e5444.php

According to the Designer Information Package -- L'Oreal Fashion Week Spring 2007

http://www.dexigner.com/design_news/6187.html


Fee: TBD


Designer fees are dependent on desired timeslots. Designers must select timeslot appropriately and within prospected budgets. All fees are non-negotiable.

Designers are charged anywhere from $2500 to $5000 by the FDCC to participate during L'Oreal Fashion week.


Conduct and Behavior


Over the years Robin Kay has openly maligned the reputations of those who do not agree with her. Many individuals and companies who have shown promise for innovation and leadership have been shut out as potential competitors and a threat to her position as "the Queen of fashion in Canada". Companies and individuals have been blacklisted by Miss Kay and her associates and their reputations subsequently smeared. Miss Kay continues to treat people who do not serve her purpose with disrespect and contempt.

Fashion and Design Festival

The recent fashion and design festival was an example innovative approach to marketing Canadian Fashion. An event which showcased 16 local designers.

Her statements to the Toronto Star were generally deemed as being unsupportive. Any group that tries to steal the FDCC's thunder is usually admonished by Robin Kay.

"It's inappropriate that people from Quebec would use an acronym similar to the FDCC," says Robin Kay, president of the Fashion Design Council of Canada.

She'd also like to see more people from Ontario hired by festival organizers, considering it's the Toronto version of the Montreal festival. "The people who are managing it and producing it are all from Montreal. Their working people, their technicians, show producers" are mainly from Montreal, she says.

But Kay hopes the event is a success and thinks the strategy to use retailers in the fashion shows is a good move for the city.

"We can't disparage that, because the mall has to make their rent," Kay says of the retail element of the shows, but adds, "maybe it's best left in the mall, because it looks pretty rainy these days."

http://www.thestar.com/living/Fashion/article/248839

It should be noted that Robin Kay brought in a group from Montreal to produce the opening night party at fashion week in spring 2007 which mainly utilized a team from Montreal to produce the show.


Get on Robin Kay's bad side and be prepared for an onslaught by Robins Kay's clique, who are instructed by Ms. Kay to, damage your reputation at every opportunity and make things as difficult as possible for you to do business in Toronto.

Designers, public relation consultants, media, retailers and other industry representatives have received calls from FDCC staff members with suggestions not to work with certain parties and with the clear inference that doing so may result in their not being invited back for fashion week.

Modelresource's preview to L'Oréal Fashion Week stated "if there isn't a marked improvement in the organization of this year's event things could get ugly quickly."

For my part, I was flooded with feedback following my opening day review. The messages came from people formerly connected with the Fashion Design Council of Canada, from agency staff, from models and from parents of models. Each and every message supported my stance that the FDCC's judgement was often flawed, or its intentions poorly communicated. Dan Grant - Modelresource

http://www.modelresource.ca/Shows/FashionWeek_FW06/recap.shtml


Arrogance that's knows no bounds


"I don't think there would be a Canadian fashion industry without L'Oreal Fashion Week," the Fashion Design Council of Canada's Robin Kay told Canada AM last Monday.

It's no wonder that the FDCC employs three PR consultants – it seems every time she opens her mouth she sticks both feet in it


New York has its Anna Wintour – Toronto has Robin Kay.


Robin Kay – conviction for trafficking cocaine ?

In conducting the research on the FDCC and Robin Kay our team unearthed an article by Leanne Delap (current fashion editor Globe and Mail) and Ceri Marsh (current Editor-in-Chief of FASHION Magazine )written in 2001 as quoted from the Ryerson Review of Journalism

Another notable piece was "She Used to Be Robin Kay," which ran in the Summer 2000 issue. "Robin was a big Canadian brand at one time, and when we started to do the research and interviews, things just started coming out of the woodwork," says Fashion news director Ceri Marsh. The article chronicled the tale of Robin Kay, a sweater designer and environmental entrepreneur, and her conviction for trafficking cocaine. "We were so excited that we got to send a story to the lawyer," says Delap. "We thought, We are doing something right."

http://www.rrj.ca/issue/2001/summer/344/


We are not confirming that Miss Kay has been convicted but simply referencing an article - this needs to be verified by the police to determine if Miss Kay has actually been convicted of cocaine trafficking.


Conclusion


The fashion industry in Canada is simply not willing to tolerate Ms. Robin Kay's behavior any more. Robin Kay is a tyrant and their simply is no place for tyrant as President of the Fashion Design Council of Canada.

It is now time for a much needed change in leadership, the community desperately needs a leader that will genuinely earn the respect of the community, one who has ability to bring together members of the fashion community instead of alienating many who have contributed to the industry.

Ask many in the industry and they simply say "Robin Kay and the FDCC are very difficult to work with".

Many designers and industry professionals are afraid to speak up against Robin Kay in fear of being expelled from L'Oreal Fashion Week.

Her arrogant behavior has caused discontent and divided many in the fashion community over the years. Many designers, industry representatives and buyers have silently boycotted L'Oreal Fashion week due to the politics and reputation of the FDCC.


Fashion designers need to take back control of L"Oreal fashion week and the Fashion Design Council of Canada.


Recommendations:

Investigation into the workings of the Fashion Design Council of Canada to ensure that it is compliant with the polices for operating a not for profit in Canada.

  1. Membership be open to all members of the fashion industry.
  2. All fashion designers have a vote in the workings of the FDCC.
  3. Notices for meetings and AGM be communicated publically on the FDCC website.
  4. An Ombudsperson be set up to investigate any complaints against Robin Kay and the FDCC.
  5. A study be conducted to determine the most effective strategy for Canadian designers to gain greater market share in Canadian retail stores.
  6. All levels of Government take a greater role in the workings of the FDCC and include fashion weeks across the country.
  7. Industry representatives sign up for membership and vote Robin Kay off the board of directors and President of the FDCC.

Finally for the FDCC to remain a credible organization and meet the needs of Canadian designer, requires new leadership – someone who can reach out to the community at all levels. Someone who has leadership to make everyone feel welcome regardless of their position, ethnic background, socio economic status and interest in supporting Canadian fashion.

A petition board has been set up for fashion industry professionals to voice their opinions and to vote for a reform of the fdcc


http://www.ipetitions.com/petition/FDCC/

Regards,

The fashion community of Toronto

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