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.
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Blaze says
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.
RENEE UBRUN says
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!!
stephen russell says
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.
Jarrod says
I was really looking forward to visiting their store in Hilo on our trip two weeks ago. Very disappointed. Poor selection of mostly foreign made crap. We made out great however at the islands great farmers markets! Too bad. Big store seemed out of place as well.
Nena says
We love Hilo Hattie Stores. Went shopping when ever In Hawaii ( 7 times so far) The best store to buy Hawaiian clothing, souvenirs and chocolate. .Where would one shop if they go out of business? I hope they manage to pull themselves out of this situation. Aloha!
Karen Laurie says
I used to go to Hilo Hattie whenever I traveled to Hawaii, on whichever island I happened to be staying. The quality of fabrics, the uniqueness of designs of the fabric were always a draw since they couldn’t be found elsewhere. In the last several years…10 or so…there has been a noticeable decline in both quality and uniqueness and nothing special that couldn’t be found in most any ABC store in the islands, but a a much higher price. I have been so disappointed, since Hilo Hattie’s was always planned into all my trips and the last few trips were a waste of time, so I’m certainly not surprised to see them failing. What a shame and loss to Hawaii.
Stephanie says
I can tell you a couple things, unfortunately. Most of their product was incredibly outdated. The family matching section? The vast majority of consumers will not purchase that sort of wares.
I expected, during my first visit to Hilo Hattie, to see a ton of locally made and locally sourced products. Interesting and creative – expanding to include artisan wares would have been an excellent choice.
bowdowntozod says
The foreign made clothing is what did it for me. When we first visited Hilo Hattie back in the early 90s, the Nimitz store had a section right there in the main part of the store where you could watch the seamstress’s work. I’ve been ton Hilo Hatties on every island including Vegas and Orlando!
But last year when we visited the Kona store we were disappointed to find very few pieces actually made in Hawaii. That was sad. And that made me less apt to shop there any longer.
Leo Carpenter says
Sa that such a legacy would see this day. The last couple of times that my wife and I have come to Maui (Lahaina) we were saddened by the number of items in the store that were from the Philippines. Couldn’t really bring an item back from Hawaii made in the Philippines, so we didn’t purchase. It’s like buying an Indian doll from the Hopi Nation made in Japan. Just doesn’t work.
Pua says
A similar thing happened recently to Reyn’s, one of the top traditional and original stores of Hawaiian Shirts and Aloha Shirts on the islands. The Hawaiian founder Reyn Spooner sold to a CA owner (no discount hair salon though). We couldn’t believe it and just hope that the great quality of these shirts will stay the same. Keoki’s aloha shirts from Reyn’s have always been the best. Aloha, Pua
Lauren says
Reyns quality is still one of the best. I sell Reyn Spooner and Tori Richard. The fabric, design and quality hasn’t changed. Many of the major hawaiian shirt companies outsource(mostly silk shirts). Most of my personal shirts are spooners. I hope they keep the tradition and yes maybe lower the price.
Gene says
I was a tour guide on Maui and Big Island for years with Polynesian Adventure Tours (little plug for the old gang), and I guess we all saw this coming for Hilo Hattie. Sad, but … .
Not saying they’re pau, but they really need to catch up.
On a positive note, they’ve always been very generous and courteous to the tour guides/bus drivers/escorts.
Really like your site. Great presentation.
Gene aka Kiniguy
pau says
Reyn Spooner started marking ALL of their product in Korea about three years ago. I stopped buying it then and switched to Tori Richard, Kahala and Iolani. They still make made in Hawaii product!