Considered a retail success story after surviving the Covid pandemic, the once promising brand has now joined the growing list of retail casualties.
Faced with the harsh realities of changing markets and cutthroat competition, its closure marks the end of a six-year run and the demise of another commodity that includes size and gender.
in 2019 founded by then-college students Cami Téllez and Jack DeFuria, Parade sought to challenge traditional lingerie giants like Victoria’s Secret by offering more inclusive, body-friendly, and gender-responsive products.
The brand quickly resonated with Gen Z through eye-catching branding and social media marketing, cultivating an online community on popular platforms like Instagram.
From October 28 Parade has permanently suspended operations, according to its website, which no longer processes purchases.
“The Parade was created to welcome all of you and to express yourself boldly in the colors of the entire spectrum, and we hope that we have been able to create such a space for you,” the Parade said in a statement.
Despite its early momentum and devoted following, Parade’s troubles became apparent 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.
Although it was a big expense given its location in one of New York’s most expensive neighborhoods, the store was meant to be a marketing move to increase brand visibility rather than profit.
Parade continued to expand into physical retail and in 2023. partnered with Target ( TGT ) to sell its products in 400 stores and online.
But behind the scenes, big changes were taking place. That same year, Téllez stepped down as CEO when Parade was acquired by Ariela & Associates, the parent company of Fruit of the Loom.
Financial challenges have grown over the years. Until 2021 by the end of “Parade” earned 29 million USD in gross sales, but nearly 60% of revenue was spent on marketing, compared to 30% last year.
According to Business of Fashion, in 2022 the company began to cut costs, reducing its EBIT loss to 4.4 million. USD in 2023 in the second quarter, compared to 19 million USD gross sales.
When 2019 canceled its annual fashion show, Victoria’s Secret ( VSCO ) lost cultural relevance, faced backlash and declining sales. The timing seemed ideal for a new, all-encompassing brand to fill a gap in the market, but the same opportunity also attracted powerful competitors.
That same year saw the launch of Rihanna’s Savage x Fenty and Kim Kardashian’s Skims, two brands with huge celebrity endorsements and savvy social media strategies targeting similar audiences that Parade had a hard time matching.
More retail closings:
“Social media doesn’t work the way many marketers think. Brand endorsement alone doesn’t influence a customer’s behavior or drive them to buy, nor does it drive friends to buy,” says Harvard Business Review.
Getting attention or mentions is not the same as driving sales.
“Social media activity is not the same as sales promotion,” said small business growth coach Terry Carney. “If your content isn’t designed to convert, all you’re doing is entertainment. And last I checked, entertainment doesn’t pay the bills.”
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A cup: introduced in 2018 at the end as a direct-to-consumer (DTC) intimate brand focused on minimal design, extended sizing.
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FullBeauty Brands made the acquisition in 2023 as part of a strategy to expand its intimate and plus size offerings.
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Condition: Still working for new owner
Source: Fashionista -
Knickey (now changed to Subset): Established in 2018. Started as a sustainable DTC underwear and intimates brand from Canada; extended sizes, men’s line, lounge category.
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Instead of closing, the brand is changing and rebranding (subgroup).
Source: modernretail.co -
Thinx: a period underwear brand with a social mission, founded in 2013. in 2017 faced major reputational issues related to accusations by founders that affected brand trust.
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It still works in some form, but an example of DTC facing existential challenges.
Source: Gloss -
Understanding: Canadian plus size intimates/underwear brand.
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Reddit posts in 2025 indicates that the company has ordered liquidation of inventory and appears to be ceasing operations in the US.
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The company’s website says it has “paused” taking new orders.
Source: Understanding
While some startups have turned into multi-billion dollar success stories, their odds of survival are huge.
According to statistics on startup failure rates from Exploring Topics, up to 90% of startups fail, around 10% close in the first year, and around 70% fail within the first five years.
“A startup is basically a business experiment with potential. This means that real startups tend to fail by definition,” said DotaHaven founder Kyril Kotashev.
“They’re testing assumptions, and it’s very likely that those assumptions are wrong. The more innovative the startup, the riskier the assumptions and the more likely it is to fail.”
There’s reason for optimism, though, as first-time startup founders have an 18% success rate, and history has shown that many of today’s household names started as small businesses.
Related: Target announces big change affecting its entire business
This story was originally reported by TheStreet in 2025. on November 2, where it first appeared in the retail section. Add TheStreet as a preferred source by clicking here.