Business
Fred Segal failed to compete in the 'very hard beast' of L.A. fashion retail. Here's what went wrong
It was peak 1990s when Cher Horowitz, the fashionable teen queen in the hit film “Clueless,” needed her “most capable-looking outfit” to take her driving test at the DMV.
“Lucy!” she bellowed from her Beverly Hills bedroom, a mound of discarded designer clothes at her feet. “Where’s my white collarless shirt from Fred Segal?”
The beloved Los Angeles boutique retailer got another shoutout in the 2001 rom-com “Legally Blonde”: “Two weeks ago, I saw Cameron Diaz at Fred Segal,” Reese Witherspoon’s Elle Woods said, “and I talked her out of buying this truly heinous angora sweater.”
For more than six decades, Fred Segal was a fixture of L.A.’s retail landscape and a pop culture touchstone. Locals and tourists alike flocked to its ivy-covered walls for upscale but laid-back looks that epitomized effortless Southern California style. It was also one of the city’s most reliable hot spots for A-list celebrity sightings, from the Beatles in the 1960s to, more recently, stars including Britney Spears, Kendall Jenner, David Beckham and Jennifer Aniston.
That all but came to an end Tuesday, when Fred Segal shut its two remaining L.A.-area clothing stores: its West Hollywood flagship on Sunset Boulevard and its Malibu location. (A Fred Segal Home showroom in Culver City remains open.) The retailer — which once had nine locations in California and outposts in Switzerland and Taiwan — blamed the lingering financial effects of the pandemic and the challenges of running a multi-brand company that carried nearly 200 labels.
“Things were really going great until COVID hit,” owner Jeff Lotman, who bought Fred Segal in 2019, told The Times in an interview announcing the closures.
Industry watchers and rivals said the brand’s downfall was the result of several missteps. Once at the forefront of cutting-edge L.A. style, Fred Segal had become stagnant and lacked newness, they said. A lack of product differentiation, stiff competition and the shift to e-commerce also contributed to the chain’s demise.
“One of the challenges for us was that 90% of the brands that we carried were available elsewhere online,” Lotman said in a follow-up conversation Thursday. “Margins became very thin.”
In a city where retail stores flame out quickly, Fred Segal for years was able to stay on top of the latest trends — and set many of them, thanks to its visionary founder.
In 1961, the Chicago-born, Los Angeles-raised Fred Segal opened his first store, a 300-square-foot space on Santa Monica Boulevard in West Hollywood. Segal had already been embellishing denim with rhinestones, elevating them from everyday closet staples into something one-off and bespoke, and pioneered an in-store “jeans bar,” a concept that would be copied by rivals around the world.
“When Fred Segal the man opened Fred Segal, it was a truly unique place,” Lotman said. “He invented the fashion jean, pop-up shops and experiential shopping. Also he had brands that were not sold anywhere. It was truly one of a kind. He was the original curator of cool.”
In 1965, having outgrown the original space, Segal relocated to the corner of Melrose Avenue and Crescent Heights Boulevard. By buying up other properties in the area, he cobbled together what would eventually be a 29,000-square-foot complex that kick-started the transformation of that stretch of Melrose into the designer-filled destination it is today.
Segal began to experiment with the then-novel shop-in-shop concept, first tapping employees to take charge of different areas within the store, and later recruiting other retail innovators to fill the warren of disparate spaces, making sure each complemented the others.
“They were influencers before there were influencers, before there was social media,” said Nicole Craig, a professor at the Arizona State University Fashion Institute of Design and Merchandising. “One of the reasons why they were successful is that they curated a lot of really cool, up-and-coming brands.”
Among them: Kate Spade, Juicy Couture, J Brand and Hard Candy, all fledgling businesses when Fred Segal granted them coveted floor and shelf space.
But in recent years, amid the 2019 ownership change, the pandemic and a challenging retail environment that has led to a rash of store closures for brands big and small, Fred Segal struggled.
“It’s much harder to stand out than it used to be,” Craig said. “That’s where Fred Segal lost its way a little bit. They didn’t have enough of that fresh product that you couldn’t get elsewhere.”
Shelda Hartwell, a vice president at the retail and fashion consultancy Doneger Group, said that although consumers value heritage brands with history and name recognition, Fred Segal needed to do more to keep the excitement going.
“They stayed too much in the sameness for too long,” she said. “You had other retailers that were coming in and opening up their first brick-and-mortar stores that were just offering much more of an experience.”
The experiential aspect is even more important nowadays because so much shopping can be done online, said Mac Hadar, buyer and director of operations for H.Lorenzo, a competing boutique retailer with a store a couple of blocks away from the now-shuttered Fred Segal flagship.
“The retail stores that have continued to do well are the ones that are continuing to push the boundaries and push the limits,” Hadar said. “With the rise of online, you can find almost anything, so you have to have a very original point of view and be pretty daring with what you choose to bring into the store.”
Fraser Ross, owner of Kitson, one of Fred Segal’s biggest rivals, called retail “a very hard beast right now.” Successful brands need to figure out how to evolve quickly, he said.
The Fred Segal store in Santa Monica.
(Fred Segal)
“People aren’t shopping the way they did,” he said. “In the days when you didn’t have Instagram and the web, you could open lots of stores in every neighborhood in L.A. But now, you’ve got to be specific in trying to get the traffic through your door.”
One change that Kitson made is that “we’re not really chasing the hottest brands anymore,” Ross said, because those brands can easily be found online.
Instead, Kitson, which was founded in 2000 and now has four L.A.-area stores, has leaned more heavily into exclusive merchandise and SoCal-inspired products and brands that appeal to tourists, such as Aviator Nation, FreeCity and Sol Angeles. Fred Segal, he said, didn’t embrace that lifestyle aesthetic as much.
Fred Segal also failed to amplify its online presence, which hurt the brand’s relevance, said Ilse Metchek, an industry analyst and former president of the California Fashion Assn. She said the company did a poor job of advertising on social media and through fashion influencers, who now play an outsize role in the industry.
“The idea of legacy brands doesn’t appeal as much anymore,” Metchek said. “You’d rather look at something new that Instagram or TikTok is showing you.”
Lotman, who is chief executive of licensing company Global Icons, bought Fred Segal with ambitious plans to open roughly 20 new shops in major cities around the world and oversee a move into home decor and accessories. Before the pandemic, he had pending deals to open stores in Dubai, Canada and Japan.
Now, the future of the storied brand is unclear.
The Segal family owns the Fred Segal trademark, Lotman said, and any decision about whether to open new stores or begin selling online again would be up to them. Two Fred Segal shops at Resorts World in Las Vegas, which Lotman is not involved with, are still operating.
Larry Russ, the family’s attorney, said this is not the end of the road for the brand but could not share more details.
“We are going to be looking for a new operator to open up more stores in the future,” he said.
Business
Nearly 60 gigawatts of U.S. clean power stalled, trade group finds
A total of 59 gigawatts of U.S. clean energy projects are facing delays at a time when demand for power from AI data centers is surging, according to a trade group study.
Developers are seeing an average delay of 19 months over issues such as long interconnection times, supply constraints and regulatory barriers, the American Clean Power Assn. said in a quarterly market report.
The backlog is happening despite the growing need for power on grids that are being taxed by energy-hungry data centers and increased manufacturing. The Trump administration has implemented a slew of policies to slow the build-out of solar and wind projects, including delaying approvals on federal lands.
The potential energy generation facing delays is the equivalent of 59 traditional nuclear reactors, enough to power more than 44 million homes simultaneously.
“Current policy instability is beginning to impact investor confidence and negatively impact project timelines at a time when demand is surging,” American Clean Power Chief Policy Officer JC Sandberg said in a statement.
Despite the hurdles, developers were able to bring more than 50 gigawatts of wind, solar and batteries online in 2025, accounting for more than 90% of all new power capacity in the U.S., the report found. Clean power purchase agreements declined 36% in 2025 compared with 2024, signaling that the build-out of clean power in the U.S. could be lower in the 2028 to 2030 time period, according to the report.
Chediak writes for Bloomberg.
Business
Feud between Vegas gambler and Paramount exec sparks $150-million fraud lawsuit
The high-stakes feud between Paramount Skydance President Jeff Shell and Las Vegas gambler and self-professed “fixer” Robert James “R.J.” Cipriani spilled into court on Monday.
Cipriani filed a lawsuit against Shell on claims of fraud and eight other counts, alleging that he reneged on an oral agreement to develop an English-language version of a Spanish music show that streams on Roku TV.
He is seeking $150 million in damages.
In the 67-page lawsuit, filed in Los Angeles County Superior Court, Cipriani claims that in exchange for providing “sophisticated, high-value crisis communications services, entirely without compensation” over 18 months, Shell had agreed to develop the show “Serenata De Las Estrellas,” (Star Serenade), but failed to do so. Cipriani and his wife were to be named as co-executive producers.
“This case arises from the oldest form of fraud: a powerful man took everything a less powerful man had to offer, promised to repay him, lied to him when he asked about it, and then refused to compensate him at all,” states the complaint.
Cipriani — who has producer credits on a 2020 documentary about Vegas, “Money Machine: Behind the Lies,” and the 2015 movie “Wild Card” — intended to make “Serenata” as a “lasting legacy for his mother,” Regina, saying the effort “has been the driving force and the most important thing consuming [Cipriani’s] entire life of almost sixty-five years,” according to the suit.
The show was inspired by a song that the Philadelphia-born Cipriani used to sing to his late mother when he was growing up.
The litigation is the latest twist in a simmering behind-the-scenes scandal that has left much of Hollywood slack-jawed.
For weeks, Cipriani had threatened to file a lawsuit against Shell, with the potential to derail his comeback at Paramount, three years after he lost his job as NBCUniversal’s chief executive over an inappropriate relationship with an underling.
Cipriani’s suit alleges Shell wasdesperate for help in quelling negative stories about him.
It also portrays him as someone who was indiscreet, allegedly sharing sensitive information during the period when the Ellison family, through Skydance Media, was preparing to close its deal to acquire Paramount and then was actively pursuing Warner Bros. Discovery to add to its growing entertainment and media empire.
The eventual rift between the unlikely pair began in August 2024. Patty Glaser, the high-powered entertainment litigator, convened a meeting between the two men.
During the meeting with Shell, the executive expressed to Cipriani his concern that emails and texts between him and Hadley Gamble, the CNBC anchor Shell had been involved with, would come out, saying “that would absolutely destroy me,” according to the suit.
Cipriani claims in his lawsuit Shell was facing “catastrophic personal exposure arising from his conduct toward yet another woman in the media industry,” similar to what had prompted his ouster from NBCUniversal and that he “solicited” his “crisis communications services.”
According to the suit, Cipriani was in a position to help him, having engaged in a “longstanding practice of exposing misconduct in the entertainment and media industries.”
Robert James “R.J.” Cipriani in Amazon Prime Video’s 2025 series “Cocaine Quarterback.”
(Courtesy of Prime)
A high-rolling blackjack player, Cipriani’s colorful résumé includes aiding the FBI in the arrest and conviction of USC athlete-turned global drug kingpin Owen Hanson, who was sentenced to 21 years in federal prison, and filing a RICO suit against Resorts World Las Vegas.
Leveraging his “unique media relationships and industry influence,” Cipriani said in his complaint that he provided Shell with “ongoing threat-monitoring and intelligence services,” and “took proactive steps to suppress, redirect, or neutralize” negative coverage against Shell before publication.
Cipriani said Shell expressed “effusive gratitude” to him after he planted a story about another entertainment industry figure “in order to divert media attention” away from Shell. “Thank you thank you thank you,” Shell wrote in a text to Cipriani, according to the lawsuit, which included a copy of the text.
During tense negotiations over Paramount’s streaming rights for the highly successful “South Park” franchise last summer, Shell allegedly asked to talk to Cipriani about the matter. Cipriani then “orchestrat[ed] the placement of a highly favorable news article,” that was “devastating to Shell’s and Paramount’s adversaries in the dispute,” the suit states.
After a story published in a Hollywood trade, Cipriani wrote to Shell on WhatsApp, “I’m the one that put the article out for you!!!” and “I didn’t want to tell you till it hit so you have plausible deniability.”
According to a message cited in the lawsuit, Shell responded, “I love you!!!! …Thank you Rj,” adding “I owe you dinner at least!”
Despite those boasts, Paramount ultimately paid “South Park” creators millions more than Skydance had intended. To remove obstacles from Skydance’s path to buy Paramount, the media company agreed to two blockbuster deals that include paying the “South Park” production company more than $1.25 billion to continue the cartoon — making it one of the richest deals in television history.
During the course of their relationship, Cipriani further alleges that Shell alerted him to a then-pending $7.7-billion Paramount deal for the rights to UFC fights, while Netflix “believed” it had a “handshake deal” for the same rights, according to the suit.
Cipriani disclosed in his lawsuit that he filed a whistleblower complaint with the Securities and Exchange Commission over the disclosure of material information, claiming that Shell told him that not even UFC President Dana White knew of the transaction. In a WhatsApp message cited in the lawsuit, Shell told Cipriani that the deal was “very hush, hush until we sign.”
While the gambler continued to provide his services to Shell gratis, their relationship began to sour.
Cipriani became enraged that Shell did not uphold his end of the alleged deal to help him with the TV show, viewing it as a slap to him and his mother.
In February, the pair met to resolve their growing dispute. According to the lawsuit, also in attendance was an unidentified entertainment attorney who had represented both men in separate matters.
Patty Glaser has been widely reported as having represented Shell and Cipriani. She introduced them in summer 2024, as The Times reported Saturday.
“We were presented with a draft complaint riddled with clear errors of fact and law,” Glaser said in a statement last week. “We will strongly respond.”
The February meeting did not go well.
Shell not only “refused to compensate” Cipriani, but also told him that he could not “assist” him “in obtaining a television show or other entertainment industry opportunity.”
Cipriani further alleged in his lawsuit that during their “failed summit,” Shell revealed his “disdain” for David Zaslav, the Warner Bros. Discovery CEO, and disclosed that Paramount intended to “sweeten” its pending hostile offer for the studio to fend off Netflix prior to announcing its intention to do so publicly.
After the meeting, Cipriani stated in his complaint that Shell’s attorney privately offered Cipriani a “$150,000 personal loan” to resolve the dispute.
Business
With a big $46-million opening for ‘Hoppers,’ Disney and Pixar see a return to form
Walt Disney Co. and Pixar’s “Hoppers” took the box office crown this weekend in an encouraging sign for the company’s original animated films.
The film generated $46 million in ticket sales in the U.S. and Canada, marking the highest domestic opening for an original animated movie since 2017’s “Coco,” according to studio estimates. The global box office total for “Hoppers” was $88 million.
The zany movie features a young environmental advocate who “hops” her consciousness into a robotic beaver and bands together with other woodland creatures to stop a planned freeway expansion through a glade.
The film is directed by Daniel Chong, who created the Cartoon Network animated series “We Bare Bears.”
The muscular debut for “Hoppers,” as well as the strong performance from Sony Pictures Animation’s “Goat” last month, has been a positive sign for audience interest in original animated films.
Since the pandemic, theatrical returns for animated sequels have far surpassed that of original films. Disney’s “Zootopia 2,” for instance, has grossed more than $1.8 billion in global box office revenue, with more than $426 million domestically. Disney and Pixar’s 2024 hit “Inside Out 2” also crossed more than $1.6 billion globally.
By contrast, Disney and Pixar’s 2025 original film “Elio” brought in about $154 million in worldwide box office revenue.
Original films are vital to Pixar’s future, as the Emeryville, Calif.-based studio built its reputation on its string of nearly uninterrupted original blockbuster hits, including 1995’s “Toy Story” and 2004’s “The Incredibles.”
Paramount Pictures and Spyglass Media Group’s “Scream 7” came in second at the box office with $17.3 million in its second weekend in theaters. Warner Bros. Pictures’ “The Bride!,” Sony’s “Goat” and Warner Bros.’ “Wuthering Heights” rounded out the top five at the box office, according to data from Comscore.
With several strong releases, as well as popular holdover films from 2025 that continue to bring in revenue, the first few months at the box office have been a notable improvement over last year’s dismal first quarter.
Domestic box office revenue so far is up more than 12% compared with the same time period in 2025, according to Comscore.
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