Derek Lam May Be Having Financial, Management Issues

fashionologie — Wed, 02 Sep 2009 10:54:27 PDT

>> Is Derek Lam this season's Peter Som? A "fashion industry insider" told Page Six that Lam has been losing $1 million a month, and his label will have lost between $12 million and $15 million by the end of the year: "It's only propped up by money coming from Italian investors."

Cash flow isn't the only issue Lam is reportedly having - according to the source, his CEO Jan Schlottman only showed up to work three times for the whole month of August. Schlottman, meanwhile, told Page Six that he only had 10 vacation days last month and always had his laptop. As for the finances, Schlottman says, "Everyone has had difficulty this year, but the actual [monthly] figure is far less than [the purported $1 million]."

UPDATE: Schlottman calls the entire Page Six item "untrue," and says that rumors been fueled because the label spent money on an ad campaign and a new store this year, causing an overall loss. [The Cut]