hilo hattie

What Went Wrong at Hilo Hattie?

The Hawaiian legacy vendor has just filed bankruptcy for the second time in recent years claiming it owes more than $10 million to just 20 of its hundreds of unpaid creditors. So can “The Store of Hawaii,” Hilo Hattie remain in business?

The company has unpaid debt of $1.2 million for back rent on its main Honolulu store alone. That in addition to over a half-million in back rent on Maui and over $100k on Kauai.

In January, Hilo Hattie closed its Kihei Maui and Kona Hawaii stores. And in 2008, the company filed its previous bankruptcy following their sale to a California discount hair salon owner.

This is likely the sad end of a half-century era. Hilo Hattie problems have included:

  • Reduced discretionary buying by visitors, especially from Japan.
  • Their switch from mostly Hawaii-made to less in demand, lower quality, foreign-made garments.
  • Inability to keep pace with other Hawaii clothing designers.
  • Failure to keep pace with in-demand  merchandise.
  • High expenses and a tight credit environment.
  • Inappropriately large retail spaces.
  • Prior failed expansion attempts in Orlando and Las Vegas.

Hilo Hattie has been a Hawaii tradition since 1963. It was founded on Kauai as Kaluna Hawaii Sportswear, and renamed after actress Clarissa Haili, following her death in 1979. Unfortunately, a lack of ongoing design and quality ended up placing them in competition with Wal-Mart, Costco, ABC and others. We don’t know what the future will bring for Hilo Hattie.

13 thoughts on “What Went Wrong at Hilo Hattie?”

  1. We save our pennies for a Maui visit every two years, so I am likewise late to this Hilo Hattie news. I can’t presume to comment on the why HH would falter, but I could say the last couple of visits the place definitely lacked “energy”. For me, a sign of some misstep was when they took down the King Kong-sized aloha shirt. That was fun and something to remember. While browsing the store, I noticed the giant shirt dumped in a corner. Somehow, that spoke to me “We don’t have a good time here anymore.”

    Somewhat melancholy moment.

  2. I haven’t been to Hawaii in a while and I’m a year late learning of Hilo Hattie’s closure. I don’t know if it’s because it had sold to another corporation a few years back but it once was the BEST place to buy Hawaiian clothing. I remember when you could watch the ladies at the sewing machines. LOVED this store!!

  3. Ideas for HH:
    Make replica HI wear
    Go Local
    Combine merchendise vendors
    make authentic
    Cut prices
    sell online via Amazon.com
    Use Outlet mall for store in CA NV?
    Replan stores for Las Vegas & Orlando, Wash DC, Miami
    make prices competitive on Islands for tourism alone.
    Have HH mini stores in hotels on Islands?

    More can be done.

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