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Considered a retail success story after surviving the Covid pandemic, a once-promising brand has now joined the growing list of retail casualties. Facing the unforgiving realities of shifting markets and relentless competition, its closure marks the end of a six-year run and the demise of another size- and gender-inclusive label. Founded in 2019 by then-college students Cami Téllez and Jack DeFuria, Parade aimed to challenge traditional lingerie giants like Victoria’s Secret by offering more inclusive, body-positive, and gender-fluid products. The brand quickly resonated with Gen Z through its use of eye-grabbing branding and social media marketing, cultivating an online community across popular platforms such as Instagram. As of October 28, Parade has permanently shut down operations, according to a notice on its website, which no longer processes purchases. “Parade was created with the intention to welcome you all to express yourself in full-spectrum color with confidence, and we hope we were able to create that space for you,” wrote Parade in a statement. Parade’s momentum and early financial struggles Despite early momentum and a devoted following, Parade’s troubles began to surface long before its closure. In 2021, the brand opened its first physical store in Manhattan’s SoHo district, initially as a pop-up that later became a permanent site. However, the store closed a year later after its lease expired. While a significant expense, given its location in one of the priciest neighborhoods in New York, the store was meant to serve as a marketing move, boosting brand visibility rather than profit. Parade continued to expand into physical retail, landing a partnership with Target (TGT) in 2023 to sell its products across 400 stores and online. Yet behind the scenes, major changes were underway. That same year, Téllez stepped down as CEO, following Parade’s acquisition by Ariela & Associates, the parent company of Fruit of the Loom. Financial challenges had been mounting for years. By the end of 2021, Parade generated $29 million in gross sales but spent nearly 60% of its revenue on marketing, up from 30% the previous year. In 2022, the company began cutting costs, reducing its EBIT losses to $4.4 million in the second quarter of 2023, against $19 million in gross sales, according to Business of Fashion. Parade faces major competition from celebrity brands When Parade launched, Victoria’s Secret (VSCO) was losing cultural relevance, facing backlash, and declining sales after the cancellation of its annual fashion show in 2019. The timing appeared ideal for a new, inclusive brand to fill the market’s gap, but the same chance also attracted powerful rivals. That same year, Rihanna’s Savage x Fenty and Kim Kardashian’s Skims launched, two brands with massive celebrity backing and savvy social media strategies targeting similar audiences, which Parade struggled to match. More Retail Closures: Popular discount retailer announces closure amid financial struggles 100-year-old grocery chain closes all stores in several states Another outdoor retail chain announces store closures “Social media doesn’t work the way many marketers think it does. The mere act of endorsing a brand does not affect a customer’s behavior or lead to increased purchasing, nor does it spur purchasing by friends,” said Harvard Business Review. Getting attention or mentions is not the same as driving sales. “Social media activity isn’t the same as driving sales,” said Small Business Growth Coach Terry Carney. “If your content isn’t built to convert, all you’re doing is entertaining. And last I checked, entertainment doesn’t pay the bills.” Parade is not the only underwear brand that struggled Cuup: Launched in late 2018 as a direct-to-consumer (DTC) intimates brand, focused on minimal designs, extended sizing. Acquired by FullBeauty Brands in 2023 as part of strategy to expand its intimates/plus‑size offering. Status: Still operating under its new owner Source: Fashionista Knickey (now rebranded to Subset): Founded 2018. Began as sustainable DTC underwear and intimates brand from Canada; expanded sizes, men’s line, lounge category. Rather than closing, the brand is pivoting and rebranding (Subset). Source: modernretail.co Thinx: Period‑underwear brand built on a social mission founded in 2013. Faced major reputation issues in 2017 involving founder allegations which impacted brand trust. Still operational in some form, but example of DTC intimates facing existential challenges. Source: Gloss Understance: Canadian intimates/underwear brand with inclusive sizing. Reddit posts in 2025 indicate the company instructed inventory clearance and appears to be winding down U.S. operations. The company’s website says it has “paused” accepting new orders. Source: Understance The harsh reality of startup survival While some startups have evolved into multi-billion-dollar success stories, the odds are overwhelmingly stacked against their survival. Up to 90% of startups fail, with around 10% shutting down in the first year and roughly 70% failing within the first five years, according to Exploring Topics’ Startup Failure Rate Statistics. “A startup is in essence, a business experiment with potential. This means that real startups are prone to failure by definition,” said DotaHaven Founder Kyril Kotashev. “They are testing assumptions, and it’s very likely these assumptions are wrong. The more innovative the startup, the riskier the assumptions and the more likely it is to fail.” Still, there is reason for optimism, as first-time startup founders have a success rate of 18%, and history has shown that many of today’s household names began as small ventures. Successful startup companies
