It’s “Business” As Usual For Arielle Charnas
Enjoy this extra-long newsletter as a holiday treat!
As you all probably know by now, the internet rumor mill exploded last week in a way I hadn’t seen since Armie Hammer was accused of enjoying human flesh. It all started with—as many things do—a Deux Moi post.
The post claimed influencer Arielle Charnas’ husband Brandon was allegedly embezzling from his influencer wife’s clothing brand, Something Navy, that the two were getting a divorce after more than eight years of marriage, and an article from Business Insider dropping any day would be exposing it all. (If you need a primer on Arielle Charnas and Something Navy, listen to the recent episode of my podcast.)
It only took about an hour for the story to snowball, and the speculation grew wildly: rumors of cheating, lovers, investigations, arrests, missing millions, and more. (Along with comments like “Is that why Brandon deleted all his posts and made his Instagram private? This must explain why Arielle’s been looking depressed and turned her TikTok comments off.”)
When the article eventually did drop roughly 50-something hours after the initial Deux Moi post, people unsurprisingly said it was a letdown. The word “embezzle” wasn’t used once, there was hardly a mention of Brandon, and there was no implication around affairs, lovers, or divorce. (Which, I have to ask: Why the hell would people expect Business Insider—of all publications—to cover a cheating scandal?)
So, let’s pretend that whirlwind 50-something-hour internet chaos never happened. Deux Moi never posted about it, and the Charnas camp never had to release statements shutting down rumors of embezzlement and divorce.
Let’s go back and pretend we’re seeing this story with fresh eyes.
If we do that, this article isn’t a letdown at all. In fact, it’s pretty damning.
Reporter Katie Warren writes that Something Navy has owed suppliers hundreds of thousands of dollars for several months—even going so far as to ghost vendors asking for their money. Models (including child models) have yet to be paid as of publication. Freelancers have waited months for their payouts, and employee direct deposits have been several days late on at least one occasion. Of course, to rub salt in the wound: This is all while Charnas traipses around in $2,600 Hermès boots and $3,900 Khaite jackets and rents $150,000-a-month Hamptons properties.
Did we read the same article? Because these tidbits are… incriminating. (This summary doesn’t do it justice though; if you haven’t already, read the article here.)
People Want Their Money!
One India-based supplier fumed when they saw Charnas’ lavish, Hamptons-based 35th birthday party on social media while he was still owed $363,000. He heard constant excuses, then received the silent treatment, then flew to New York to confront Something Navy’s CEO himself, Matthew Scanlan. They refer to the brand as “the Bernie Madoff of fashion.”
Many of the payments were only paid off when BI started investigating!
One 5-year-old child model has yet to be paid for shoots she did in early 2022.
According to the article, 22 employees have left Something Navy this year alone, including several that had been at the company since 2018. Many of them spoke to BI, with one saying, “Something Navy was a clusterf*ck. Like, bleeding. I’m just shocked it hasn’t tanked already.” The article claims that Arielle’s lavish lifestyle in contrast to the brand stiffing suppliers was “more than they could handle.” And after watching Something Navy miss payments for vendors, suppliers, models, freelancers, and beyond, employees began to realize they were probably next—which was only exacerbated by the late-paychecks incident.
Leadership Seems… Questionable at Best
Employees were directed to pause their work for two weeks to help plan Arielle’s extravagant 35th birthday party. (Scanlan called it “a big moment for the brand,” as it had brand partners and sponsors. As most birthday parties do.)
She’s allegedly more likely to wear and promote her favorite brands (The Row, for example) than her own. According to former employees, she actually disliked promoting her own brand. Former employees claim that Charnas has become disengaged and “checked out” from the company over time, and is rarely seen at the office.
They’ve also compared CEO Matthew Scanlan to Adam Neumann, aka the disgraced founder of WeWork. (Lol.)
No one could talk to Arielle or Brandon about the company’s poor performance. If she asked about it, employees were instructed to tell her that everything was going great. When she was eventually informed of the struggles this past spring, she was “devastated.”
God Forbid People Think You Rent Your Handbags
According to the brand, the money from Charnas’ partnerships go to Something Navy while she receives a salary. Interestingly though, Charnas rarely wants to do partnership content, and dragged her feet regarding a Vivrelle (a rental bag company) partnership because she didn’t “want her followers to think she rents her handbags.”
Sales Have Done a Nosedive
Something Navy’s four retail locations apparently don’t turn a profit, and only sell a handful of pieces per week. While the brand was a hit at first—garnering $831,000 in net sales a week into its launch (not the $1,000,000 in 30 minutes the brand initially claimed, but I digress)—the frequent, churned-out launches made less and less money over time.
One 2021 sale only grossed $4,000—that’s only one Khaite jacket!
Oh: And the brand’s “restocking fee” when you make a return is $12.75!!!!?!?!
And, look: I know that this stuff is common for brands and startups, especially in this economy.
And I also understand Charnas is now a minority owner in Something Navy, and is likely extremely distanced from business operations.
BUT. This is her namesake (in the blog world, at least) brand; she is the founder of it, the face of it, and the inspiration behind it. Whether Charnas had any knowledge of the behind-the-scenes chaos—it’s likely she didn’t!—or not, it’s strange that she doesn’t want to put out a statement that, at the very least, absolves herself and misplaces the blame. (It would be easy for her to do so, as, again, she’s clearly very distanced from business operations.)
Again, I’m not saying it’s her fault! At all!
But it still looks bad! And insensitive to not address it! And since the article dropped on December 8, Charnas is yet to acknowledge it. (And it’s fairly safe to say she won’t, ever.) It’s “business” as usual.
Again, if you read the article through a lens of “I wasn’t expecting embezzlement or divorce to be mentioned here,” it’s a bombshell. It reflects poorly on those involved.
If something you’re affiliated with is accused of shoddy business practices—like not paying 5-year-old models, or skimping out on suppliers who, in turn, can’t pay their employees, all while living a beyond-lavish lifestyle—wouldn’t you want to at least pretend you’re making it right? Pretend you care?
But maybe that’s just me. LMK.
Read the article here.
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