Luciano Manganella spent 35 years transforming JasmineSola from a single boutique in Harvard Square into one of Boston's most fashionable chains. Its downfall, and now imminent closure, took less than 24 months.
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"Jasmine was like a child to us," Manga- nella, 61, said in his first interview since the company collapsed. "When I go by the stores closing, I see tears."
Jasmine's demise began with an effort to rapidly expand the chain and line Manga- nella's pockets. In July 2005, he planned to merge with J. Jill, the Braintree women's retailer. But while Manganella was vacationing in Positano, Italy, his lawyer called with a better offer from retailer New York & Co. Days after returning to Boston, Manganella sold his 14 boutiques to New York & Co. for $30 million, hoping the apparel giant would turn Jasmine into a retail empire. Though Manganella knew little about his new corporate boss, he wanted to stay on as president of the Jasmine brand.
Less than a year later, New York & Co. fired Jasmine's founder over allegations of sexual harassment and tried to withhold $7 million it had promised him as part of the sale. A legal battle that cost Manganella and the company a total of $5 million ensued, while Jasmine shops foundered. Finally, New York & Co. last month said it would shutter the chain known for bringing designer brands such as Kate Spade and Juicy Couture into the region.
Manganella's experience is all too com mon for entrepreneurs who sell their companies and try to stay on. Even he quickly admits that after years of running his own show, he found it difficult to answer to a host of new bosses.
Still, the closures left him bitter. "Do not fire me and do not take my dream and destroy it," he said.
New York & Co. declined multiple requests for comment. http://www.boston.com/news/globe/living/articles/2007/12/22/for_iconic_boutique_a_swift_unraveling/
more stories like this
"Jasmine was like a child to us," Manga- nella, 61, said in his first interview since the company collapsed. "When I go by the stores closing, I see tears."
Jasmine's demise began with an effort to rapidly expand the chain and line Manga- nella's pockets. In July 2005, he planned to merge with J. Jill, the Braintree women's retailer. But while Manganella was vacationing in Positano, Italy, his lawyer called with a better offer from retailer New York & Co. Days after returning to Boston, Manganella sold his 14 boutiques to New York & Co. for $30 million, hoping the apparel giant would turn Jasmine into a retail empire. Though Manganella knew little about his new corporate boss, he wanted to stay on as president of the Jasmine brand.
Less than a year later, New York & Co. fired Jasmine's founder over allegations of sexual harassment and tried to withhold $7 million it had promised him as part of the sale. A legal battle that cost Manganella and the company a total of $5 million ensued, while Jasmine shops foundered. Finally, New York & Co. last month said it would shutter the chain known for bringing designer brands such as Kate Spade and Juicy Couture into the region.
Manganella's experience is all too com mon for entrepreneurs who sell their companies and try to stay on. Even he quickly admits that after years of running his own show, he found it difficult to answer to a host of new bosses.
Still, the closures left him bitter. "Do not fire me and do not take my dream and destroy it," he said.
New York & Co. declined multiple requests for comment. http://www.boston.com/news/globe/living/articles/2007/12/22/for_iconic_boutique_a_swift_unraveling/
I do feel sorry for this man, to work so so hard and have it all taken away from him. For one his business failed but then to know the company is firing him after he has tried to stay on from allegations is even worse! On the plus side maybe we will be seeing some great items from Jasmine and New York and Company will take and build this brands salience!
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