From The New York Times today:

In the scope of dismal events unfolding at luxury fashion companies, the news this week that Chanel would cut 200 jobs in Paris calls to mind a certain après moi sentiment of Louis XV.

If Chanel is cutting back, what’s next?

Luxury brands were once thought of — or self-styled — as immune to economic pitfalls, but the precipitous decline in sales at retailers like Neiman Marcus and Saks Fifth Avenue has shown how serious an impact the global recession has had on all parts of the marketplace. Still, Chanel, with its array of tweedy clothes, quilted handbags and fruitful fragrances that approach $5 billion in annual sales, was considered the paradigm of luxury brands, so its retrenchment is seen as especially ominous.

“Everyone is looking at their business right now,” said Robert Burke, a fashion consultant, who nonetheless said he was surprised to see cutbacks at Chanel.

“What we’re seeing is not necessarily isolated just to the high-end companies or the midprice or mass,” he said. “It’s a time when everyone is re-evaluating.”

Read the whole thing here.

WWD reports on the closing of Los Angeles’ iconic Tracey Ross boutique.

Tracey Ross, the pioneering boutique owner who’s been a fixture here for almost two decades, is closing her namesake store on New Year’s Eve because of fallout from the recession.

Ross first opened her shop, on now-trendy Robertson Boulevard, in 1990 before moving to the Sunset Plaza district in West Hollywood in 1996, where her iconic, 1,600-square-foot boutique has drawn a dedicated following from celebrities such as Kate Hudson and Courtney Love.

“Of course it’s the economy,” Ross said in explaining her decision.

In the UK, it’s fancypants retailer USC that’s in trouble:

The global recession has come home to the United Kingdom clothing industry once again. In a wake of failing chain store companies, the newest victim is the 19 year old retailer USC. The company sells designer clothing ranging from polo shirts to printed t-shirts to dresses and also men’s fashion. The High Street company has announced it is going into administration. This will affect 15 stores in the 58 store chain with the remaining 48 stores being purchased by Dundonald Holdings, Ltd.

And in the US, ABC News goes nuclear on the total bummer front:

The recession and factors like bad weather over the last two weeks contributed to the slowest retail holiday season in 38 years. With such dismal shopping numbers, Strategic Resource Group estimates that 160,000 stores will have gone out of business in 2008 and 200,000 more will shut down in 2009.

“We’re going to close malls, we’re going to close chains, we’re going to close stores,” said Howard Davidowitz, the chairman of retail consulting firm Davidowitz & Associates. “The American standard of living is changing forever.”

Yikes. 2009 is going to suck hard. But whaddya do?

Buy local.