Corp. Skirts: The right idea at the wrong time

Corporate crunch: Difficulty getting a loan forced owners Courtney Parker and Tamara Paul to close their store

Following a trip to Italy where they became enamored with the finely tailored women’s suits, local entrepreneurs Tamara Paul and Courtney Parker returned to Wilmington determined to bring fashionable professional clothes to women here. “I always had a hard time finding clothes that fit for work,” Parker said.

They opened a business women’s clothier, Corporate Skirts, in the Forum shopping center in May 2008. But, despite sales doubling in their first year of business, the rocky economic climate took its toll forcing them to close up shop by the end of this year.

Paul, who owned a surf shop in Wilmington previously, did not expect to be denied a $200,000 SBA loan. “But, the SBAs are tight,” she said. “What I would have done is have gone for the bank loan when I still had capital.”

Coupled with high unemployment, consumer spending is down. “People are not spending as much. That’s a no-brainer. They’re saving and getting out of debt. They have it in their head to save,” Paul said.

Despite this, Corporate Skirts was beginning to build a clientele of women who would drive down from Raleigh to shop at the store because of its variety of women’s suits and professional clothes. The women said even in Raleigh, there isn’t a store like it.

At trade shows, it was difficult to find designers who carried a variety of women’s suits. “We hunted for vendors with more than two suits,” Paul said. “It was difficult to find business wear for women.”

Sometimes it was more fruitful to talk to the men’s clothiers to find out if they made women’s suits than to talk to the women’s clothing designers. Outside the corporate world, women have more options for what they can wear to work, which broadens women’s fashion trends, Parker said.

But, in today’s competitive job market, looking sharp has its advantage. Not only are women competing against men, they are up against other women, Paul said. “I think women looking sharper in the work force is going to be a growing trend,” she said.

Corporate Skirts aimed to price their merchandise comparable to Banana Republic and Ann Taylor. Their clientele is a mixture of local attorneys, pharmaceutical executives and recent college graduates looking to land their first jobs. “But, 85 percent of the customers are bargain shopping,” Paul said, which made it challenging to make a profit.

The team had it in their business plan to look for less expensive lines. But, like other boutiques and small stores, they buy from vendors, who cut to order, which costs more.

Without the support of the banks, the owners will close their doors on Dec. 31. They are selling all merchandise at 40 percent off or more. Corporate Skirts is open Monday through Saturday 10 a.m. to 8 p.m. and closed Dec. 24, 25, and 26.