Kate Middleton Effect Made Brands Popular But Closed Down These Companies

The Kate Middleton effect has both a positive and negative effect on the market.

According to Sarah Rainey, a journalist for Daily Mail, the Duchess of Cambridge's approval can lead to global interest, but some were not able to cope with it and were forced to shut up their shop completely.

"Fashion experts say there may be a link between Kate’s backing of a fashion designer — and financial woes further down the line," Rainey wrote. "For although clothes fly off the shelves at first — the so-called Kate Effect has boosted the UK economy by £152m a year — this requires a huge increase in production. As a result, many retailers take out loans, rack up debts they can't pay and end up on the brink of bankruptcy."

Here are the brands that suffered from what Rainey called as "curse of Kate" due to Kate effect.

L.K. Bennett

This brand has become one of Middleton's wardrobe essential. In fact, the duchess wore it during her Australian tour in 2014. She also donned another outfit from the brand when she met Michelle Obama in 2016.

Between 2016 and 2017 the company suffered financial loses and blamed it on the "exceptional costs" worth $3.7 they spent on corporate restructuring.

Issa

Middleton appeared on TV in a blue dressed designed by Daniella Helayel during her engagement interview with Prince William. That was the best day of the designer's life.

The garment sold out in minutes and there were tons of calls from those who wanted to own the same item, too. Unfortunately, Issa didn't have enough profit to cope with the sudden success.

She was forced to sold 51% of her business. The partnership didn't work. She eventually decided to quit the brand and start a new clothing line of her own, Dhela, in 2017.

"I had a great business, which I’d built up on my own over a decade. To watch it evaporate was heartbreaking," she said.

Hobbs

This brand is another High Street favorites of the duchess. Middleton has been seen wearing wardrobes from the said line even before she joined the royal family.

In 2015, Hobbs racked pre-tax losses of $20.3 million after a management shake-up. In 2017, they were forced to ditch its sister brand, NW3. Financial analytics firm Company Watch placed the brand in its "warning area."

In related news, Middleton never wears orange. It is a personal choice because the royal mom of three feels that the shade doesn't suit her.