Idealog

Idealog magazine
 
 

A challenge for Fay Richwhite

Eon has championed Kiwi design for nearly a decade, so we were dismayed to hear that its Auckland design store is in receivership. Even more disappointing is the news that those most likely to bear the brunt are the local designers who supplied Eon, as the NBR reported last week. Many haven’t been paid for the stock that Eon is discounting, yet moneylender Blackbird Finance (partly owned by Fay Richwhite) should be repaid in full.

That has David Trubridge seeing red—and laying down a challenge for the bankers. Eon, he says in an email, has been one of the main outlets for most of the country’s design community.

It would appear that none of these small businesses (including myself) will receive any of the, often large, debts that Eon owes us. This will have a serious knock-on effect throughout the New Zealand design community. We are shocked and horrified that the carefully designed law ensures the big boys always get their pound of flesh, and the small guys end up losing. We are seeing the same thing all over Wall St and London and it is the rotten heart of capitalism where financial laws are made by the super-rich to protect the super-rich.

I publicly challenge Blackbird and Fay Richwhite to promote a Kiwi sense of community and to share their pickings with those of us who are suffering in this collapse far more than they possibly could. They only have money to play with because people like us, the creative community, are earning it at the coal face. By their standards the amounts are negligible compared to what they could gain in good PR, while the amounts to us are crippling.

It is important to remember just how much the creative community punches way above its weight in contributing towards the worldwide image of New Zealand. Just over the last year my company has been responsible for literally hundreds of articles in design, fashion and lifestyle magazines around the world. This could be over a million dollars of editorial; they all mention New Zealand and give it a sophisticated, creative image which attracts an affluent cultural traveller. I have been included in a French design magazine as one of the 15 ‘plus grands’ designers in the world, and my Coral Light is in the current Time magazine style and fashion luxury list. We do this on an extremely small budget and do not have the resources to absorb events such as the Eon collapse.

Moneylenders take risks too, and they’re entitled to protect themselves. But surely in New Zealand it’s asking too much of our small designers—most very small—to have the kind of financial sophistication that Fay Richwhite and its properties are able to muster. At some point someone, somewhere, must have realised that the work of unsecured creditors would be sold to the advantage of Blackbird Finance. That’s a step that didn’t need to be taken.

16 comments

Matt - far be it for me to defend big business but shouldn't those who created the situation bear some of the blame? Some pretty green business people got all excited in the rush of consumer spending and didn't contemplate that investing in flash new, high-rent premises may not be a wise move. The only reason a finance company is involved is because Eon decided to grow outside of its natural organic abilities - they took a punt and lost. The suppliers should be as miffed with Eon (or moreso) as they are with Blackbird.

Don't ya thunk?

Matt Cooney

Matt Cooney

2008-12-02 14:13:03

I'm sure they are as miffed with Eon, or more so. But it's Blackbird and its owners who are able to do something about their predicament; Eon, in Auckland at least, is in the hands of the receivers.

I have just received an email from another eon supplier who states that she can't absorb this loss and "probably" will not be able to continue. "It’s a real disappointment to have put in all the hard work developing product and building a name to have to crash out so quickly."

Vincent Heeringa

Vincent Heeringa

2008-12-02 20:47:18

You never know what the real story is inside these companies: for all we know, Blackbird itself may be desperate for the cash. Its easy for us to expect Blackbird to do the right thing, but one thing I've learned about business in the last little while is that the real story never really makes it to light.
As to the PR opportunity that David suggests, I think it's a good idea and here's how Idealog can help. If Blackbird do indeed come to the aid of the hard working, creative suppliers I will donate a full page to covering their moves in an upcoming issue of Idealog.
C'mon Blackbird, you know you want to.

I'm with Ben on this one. We don't know the whole story but I would assume the move to their new store was expensive and didn't work out. The expected increase in foot traffic and sales just didn't happen but costs would have gone through the roof.

That is the problem with Britomart at the moment. Until the centre area has been developed it just won't be the destination that attracts the number of people required. When it is finished it has the chance to be a great area but it looks like we might just have to wait until the next up cycle. They aren't the first store to go bust down there.

Tim Wigmore

2008-12-03 11:10:09

I was one of the many smaller designers who has been affected by Eon going into receivership. In terms of what it means for my small business to lose one of its major suppliers and be faced with the prospect of not being paid for the product that has been sold through Eon, its a bit scary. It puts a serious wobble in my ability to buy materials and continue to produce or develop products.

In my opinion it is already having a knock on throughout the other small business creatives I know who have suddenly become very nervous about sending product to outlets - once bitten twice shy. This wobble could make the ride a lot more difficult for creative industry and business, both suppliers and outlets.

If there is any chance that some of the losses faced by the creatives could be softened by Blackbird I believe that it would save many small business from disappearing in the Eon fallout.

I don’t purport to know anything of the creation of a sorry situation where small designers might not be compensated for stock they have sent in good faith to EON; or why and who at EON made the regrettable decision to keep ordering stock when such a dire situation was so close; or if they themselves assumed that designers would have their unpaid-for stock returned to them in case of a receivership.

However, one message that has not come through so far in this blog is that Angela Roper is not just a business person who is crossing a tough patch. From my own experience I have seen that for years she has worked beyond her own self-interests to create the situation today where ‘New Zealand Design’ actually means something. She was the first big client that got the ball rolling for many designers, and she also spawned numerous retail competitors for EON through her desire to see a proper, self-sustaining new industry grow in New Zealand.

David sites the article in France last month which lists him as one of the top 15 designers of the moment. I first presented David’s work to the journalist responsible for this article 4 years ago when I was at a design exhibition near Lyon. The fact that I was there with my first ‘New Zealand Design’ press release was thanks to opportunities that came directly from EON introducing us to the New Zealand designers involved in that exhibition, and the opening of EON’s address book to us so that we could put our selection together.

At that time EON also helped greatly in the Bombay Sapphire New Zealand Design space and Metaform – both of which in my opinion have not been surpassed in the 4 years since in terms of the positive impact they’ve had on this new industry.

Later EON dug deeper into their pockets than anyone in the New Zealand design scene to help us produce a book called ‘the long white book’ in French and English. This book produced 3 years ago has lead to over 50 articles on the subject including a full page article in AD, and motivated 2 different European journalists to visit Aotearoa and make solid our reputation as a source of remarkable design and architecture – not just rugby and scenery. It has also created a large export market with New Zealand designers' sales growing nicely this year to France, Belgium and Holland.

I look forward to seeing if the bankers respond to David’s challenge and act as generously and idealistically as Angela has in the past – in Europe at the moment the news is full of bankers taking pay cuts and refusing their golden parachutes. For our part, now that we are very successfully selling New Zealand design in Europe thanks partly to Angela’s initial assistance, we will happily return the favor and invest the same amount she invested in our book in her next pro-New Zealand design project to help EON in some way make good to the designers who have been hurt.

Punga & Smith

2008-12-04 10:21:24

Why on earth should Blackbird share a cent with us? We lost out in all this and were caught off guard by the PPSA too but have put it down as a lesson learnt for next time. We're all playing this little game called business, taking risks every day in order to claw to the top. If we had registered with the PPSA and got our money back we wouldn't think twice about sharing it with anyone else, as I'm sure (or at least assuming) David Trubridge Inc. wouldn't.

In response to Rod's homage to Angela - we'd have to agree and disagree. Eon has indeed been a reliable stockist for New Zealand over the past years, and no doubt helped us gain more traction internationally, but someone must have known Eon was going under and someone kept ordering product. We were informed of Christmas rushes, strong commercial sales, and any rumours of going under were quashed promptly.

Calls enquiring after overdue invoices, although promised, were never returned, 'asap' payments never turned up.

Eon and Angela have supported NZ design hugely over the years but when it came to the crunch someone made the decision to look after themselves, at the expense of others.

Admittedly we have a limited understanding of these matters but our understanding is that when Blackbird and any other 'secure creditors' have been paid back the business is given back to Angela to sort out the mess (us). Has anyone heard what's going to happen then?

Maybe this is where the public challenges and selfless gestures to support New Zealand design should happen?

I am not "playing a little game", nor trying to "claw to the top." I just want to be able to work creatively and sell to those who appreciate it -- and at the same time generate more awareness about social and environmental issues.

DAVID - if only the drivel could cease - surely the day you started reproducing the Bodyraft (a beautiful and enviable design) as substandard variations was the day you started "playing a little game".

To think that we can work outside the constraints and effects of business and be able to "work creatively and sell to those who appreciate it" is some what naive, surely you of all people know that the immediate value of our creativity relies heavily on the adoration of the purchaser. We are in business - we produce a product - the consumer buys it - need, love, obsession, economy reliant.

Please stop tainting New Zealand design with the "awareness about social and environmental issues" rubbish. If you truly believed this your entire portfolio wouldn't boil down to 9 variations of the same chaise and 10 variations of the same light shade.

It appears hypocritical to travel around the world frequently in order to spread your sustainable brand motto, you are doing us no favours.

Drop the god father of New Zealand design routine - you're doing us more harm then good.

If you feel this is in anyway out of line please don't hesitate to contact me on 021 813 211, Matt Smith, PUNGA&SMITH

David Trubridge

2008-12-09 13:54:36

Yes Matt, out of line: words like drivel and rubbish are insulting and based on ignorance (meaning 'not knowing'). You are very welcome to visit and discuss these issues face to face. I hope you will come away realising that I am absolutely sincere, even if you still disagree. It is easier to sneer than to build.

"Hypocritical"? -- why do some of the most influential environmental thinkers like Alex Steffan and Michael Braungart fly all over the place? Because they believe that the positive effect of their speaking outweighs the negative effect of their flying. I raise these contradictions (not just of flying, but also of my producing stuff) at all the public talks I give. Judging from the resulting encouragement and press coverage I am doing more good than harm -- I am not sure on what facts you base your contrary idea, unless it comes from your prejudice?

If you want to understand better my business attitude read "Let my People go Surfing" by Yvon Chouinard, the owner and founder of Patagonia. He is someone else who values the environment more than anything, but that is probably enough for you to dismiss it as drivel.

Vincent Heeringa

Vincent Heeringa

2008-12-09 14:48:21

Dave, it's interesting that you are are getting flamed by fellow designers. I recall going to the Best awards and all the sniffing and snarling that went up everytime someone won an award was hilarious. What is it with designers? Too cool for school (as the Punga Smithies website admits).
Dave, you have every reason to seek some kindness from Blackbird. It's in the national interest to keep craft and artisans busy and well fed. Keep at it!

"......words like drivel and rubbish are insulting and based on ignorance..."

and you could argue, lacking imagination (no offence Matt!). I could think of some better ones for you David! haha...just joking mate.

Interesting, Vincent's comment about audience reaction to others successes though! We, as a nation, appear to revel in the failure of others and as Vincent points out, snarl at success?

I wonder what role, if any, this phenomenon may have played in eons demise?

Vincent Heeringa

Vincent Heeringa

2008-12-10 14:22:32

Actually, the following night after the Best awards we attended the Entrepreneur of the Year awards, where there was untold yipping and yahooing for everyone who came near the stage. The positivity and backslapping was almost sick making. The Sustainability awards are even worse - it's sort of the Green Party at party. The journalism awards are different again where everyone, whether you are a freind or foe, gets abused, mostly becasue we're all pissed by the time the MC gets up.
So I don't agree that the Kiwi psyche is a kncoking machine. No more so than the UK or Australia.
I wonder if its a designers' thing: all those tight briefs and clean surfaces makes it hard to loosen up.

Oh god - what have we all started

@Punga&Smith - Yeah your comments were a little out of line. You may disagree with the way David executes his business (I'm sure agree that his environmental and sustainable branding is part of his "Business" in the broader sense of the word), but to disagree so vehemently in a public forum wasn't cool

@Vincent - it is really interesting to compare the different types of tall poppy/put 'em on a pedestal activities going on in NZ. As an example - Sam Morgan and, to a lesser extent, are put ito an absolutely exalted position for their successes where the industry (and pubic at large) pretty much hang off their every word. On the other hand and, as you mention, designers can't help but descend into bitchiness and backstabbing - something abut the creative industries perhaps?

@David - it actually wouldn't surprise me if Blackbird came to the party - unfortunately if they did so it would be a shallow PR ploy and as such almost meaningless. At the end of the day it's still a case of small businesses being caught out by their own poor processes and lack of diligence.

@everyone - @punga&smith does raise some valid points - many people have commented to me at late abut how repulsed they are when a certain advertising industry mogul cavorts all around the world staying at 5+ star eco lodges as if that is a normal thing to do. And then flies half way around the world to exhort people about sustainability and brand passion, only to fly back again and tell us all exactly what we (the great unwashed who actually buy the shite his firm pushes) are doing wrong as individuals or nations

Right - now that I've alienated most people I'll crawl back into my hole ;-)

Oh the joys of dropped letters - I have a feeling the text editor caused some of the mistakes in my previous comment and not me.

So here it is sans mistakes!

Oh god - what have we all started

@Punga&Smith - Yeah your comments were a little out of line. You may disagree with the way David executes his business (I'm sure that he'd agree that his environmental and sustainable branding is part of his "Business" in the broader sense of the word), but to disagree so vehemently in a public forum wasn't cool

@Vincent - it is really interesting to compare the different types of tall poppy/put 'em on a pedestal activities going on in NZ. As an example - Sam Morgan and, to a lesser extent, Rod Drury are put into an absolutely exalted position for their successes where the industry (and public at large) pretty much hang off their every word. On the other hand and, as you mention, designers can't help but descend into bitchiness and backstabbing - something abut the creative industries perhaps?

@David - it actually wouldn't surprise me if Blackbird came to the party - unfortunately if they did so it would be a shallow PR ploy and as such almost meaningless. At the end of the day it's still a case of small businesses being caught out by their own poor processes and lack of diligence.

@everyone - @punga&smith does raise some valid points - many people have commented to me of late abut how repulsed they are when a certain advertising industry mogul cavorts all around the world staying at 5+ star eco-lodges as if that is a normal thing to do. And then flies half way around the world to exhort people about sustainability and brand passion, only to fly back again and tell us all exactly what we (the great unwashed who actually buy the shite his firm pushes) are doing wrong as individuals or nations.

Right - now that I've alienated most people I'll crawl back into my hole ;-)

Add your comment

HTML will be removed. Web addresses will be automatically hyperlinked.

Latest Idealog Weekly Latest issue: 128 pages of pure gold
Idealog Weekly: Rich with ideas in your inbox every Friday

Sign up now!

Tweeted

  • Fetching tweets …
Follow Idealog on Twitter

Overheard

Idealog is published by

AUT Media

Idealog is supported by

IBM

Image Centre

TelstraClear

 

Most useful

Six random stories

Most commented

Most collectible

Idealog t-shirt