What is Next for Oscar de la Renta Empire?

Many questions have surrounded Oscar de la Renta’s recent death, as de la Renta was essentially a one-man show who vowed he would never retire.  But now that he is gone, who will navigate the company’s age old legacy?

Unfortunately, the best time to test a succession process is when the founder is still alive to see the results, and make any necessary corrections.  However, de la Renta joked last year that he had no interest in training a replacement.  Now, his creative heir has less than a week to learn to run a thriving retail business. 

Although de la Renta left behind heirs, none are on the creative side and do not align well enough with his personal brand to let any of his family step into his shoes.  Unless the creative successor can make magic happen, the best business decision may be to find a buyer and sell.  “That’s a hard call, of course.  Family businesses are magnets for sentimentality.  But if the estate plan relies even a little on sentiment and lucky hiring, it probably needs a little more than bequests that line up in a way that satisfies the IRS.” 

See Scott Martin, Oscar de la Renta Leaves High Hole in $300 Million Family Empire, The Trust Advisor, Oct. 26, 2014.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.