Clothing Seller With Celebrity Clientele Shuts Locations in West Hollywood, Malibu

August 1, 2024 | 3:53 P.M.

Fred Segal closed its last two remaining stores in the Los Angeles area, meaning the end of the line for the once-iconic West Coast fashion retailer in a challenging climate for clothing sellers.

The stores in West Hollywood and Malibu closed earlier this week, according to local reports. The retailer’s website was no longer active as of Thursday and the company did not issue a formal announcement of the closings.

Named for its founder who died in 2021 at age 87, Fred Segal started as a jeans-focused store in 1961 and at one time had nine stores in California along with others in Taiwan and Switzerland. It eventually diversified into other types of designer clothing along with watches, handbags and other accessories, with pre-owned items part of the product mix.

The stores over the years were reported to be favorite fashion stops for celebrities like Madonna and Paris Hilton.

Current owner Global Icons, led by Jeff Lotman, acquired the company in 2019. But the COVID-19 pandemic seriously reduced business at the chain, compounding prior issues and closings.

Lotman said in an email statement this week to the news site Business of Fashion that the company is closing stores due to retail challenges including the pandemic, the shift to online shopping and economic uncertainties.

Media outlets reported that a Fred Segal furniture store would remain open in Culver City near Los Angeles, along with a smaller-format clothing store inside Resorts World Las Vegas.

CoStar data showed Fred Segal’s last remaining clothing stores operated at 8500 W. Sunset Blvd. in West Hollywood; and 3822 Cross Creek Road in Malibu. The West Hollywood property, the retailer’s flagship on the famed Sunset Strip, was acquired earlier this year by an affiliate of New York investment firm Regal Ventures in a $29.6 million deal with seller CIM Group of Los Angeles.

The Los Angeles Times reported that the Segal family owns the Fred Segal trademark and could elect to open new stores or begin selling online only in the future. The family's lawyer, Larry Russ, said it would look for a new operator to do so, according to the Times.

The closings come as several retail and restaurant chains have closed locations nationwide and laid off workers this year in response to slowing consumer spending on nonessential items like clothing and home furnishings.