Federation founder Jenny Joblin is celebrating 25 years of her Kiwi streetwear clothing brand.
It’s not often a business can thrive after liquidation, let alone last a further 10 years and beyond, but Jenny Joblin’s streetwear fashion brand Federation has done just that.
Twenty-five years after it first hit clothing racks, Federation has done it all, from debuting on the runway at New ZealandFashion Week to expanding internationally, with Joblin’s collections garnering widespread acclaim.
But after a serious mistake in 2015 led to the business evading Customs duty, the brand was placed into voluntary liquidation, with Joblin taking responsibility and pleading guilty to defrauding Customs of revenue.
The way back for the brand seemed untenable, with debts of over $1 million to creditors.
Joblin battled for years to keep the Kiwi brand alive by selling her house, paying thousands of dollars to the bank, and buying back her firm from the clutches of circling buyers.
Now 10 years on from that tumultuous time, Joblin, alongside husband and business partner Ben Dundas, has reflected on the brand’s legacy.
“It’s such a special moment to stop and celebrate everything we’ve built, but for us it’s also about looking ahead. Federation has always evolved and this anniversary is really about the next chapter,” Joblin said.
“We’re so open to opportunities, and we’re excited. It’s a nice feeling being this age because you have so much of an archive of things you’ve learned along the way. It’s not, ‘Okay, we’re coming to the end of this, let’s start wrapping things up’. It’s like, ‘No, what can we do now? Where can we change?’”
Designed, sourced and distributed by the business, Federation’s clothing operation is small but mighty, with new arrivals for the brand’s next collection rolling in when the Herald visited its flagship Takapuna store.
Federation’s clothing is sold via wholesale in 75 retailers around New Zealand, with hundreds of different pieces on offer.
Joblin has been designing clothing since a young age, sharing how she once freehand cut one of her ball dresses, while another time she turned her family’s tablecloth into a dress.
But her career path could have been different, with Joblin initially deciding between fashion and studying law.
“All of my subjects were in sync, but then my mum’s breast cancer came back; she had been in remission, and it came back that year. My grades were good enough to get me into fashion, and I thought, almost in tribute to what she’d inspired, that I had to do a fashion label.”
When Federation evolved from an idea to a fully fledged brand, Joblin was sewing samples from home. She still has the same industrial sewing machine she used at the time.
From there, the business grew rapidly, with Joblin working from premises in Kingsland while attempting to get the brand greater visibility.
“Streetwear wasn’t quite a thing then; it was more like surf or skate or high fashion. At the time they weren’t used to that; they weren’t really used to the concept of a New Zealand brand even.”
As the business grew, so too did its production requirements, with Joblin turning to offshore production of her garments, largely with factories in China.
But after years of the relationship working, the seizure of $500,000 worth of product by New Zealand Customs became a wake-up call.
“One of our factories was doing this duty fraud, completely unbeknown to us. We were told at the time that it was supposed to be their cost, but really I was about four people removed from accounts. I was disconnected from what was going on.
“Since taking it back over, I’ve been completely margin focused, watching and costing everything. Some of the exporting we were doing, it’s only when we took it over again we were like, we haven’t even been breaking even.”
Not only were some places failing to break even, but the business was also taking on unnecessary costs.
Joblin noted some product meant for customers in Europe was being shipped from China to New Zealand first, creating double-ups. Other products were also being shipped for free to Australia without her knowledge.
The stress of the situation gave Joblin pause, acknowledging that she had considered calling it quits, especially when other offers came calling.
“The hole that had been created by all this, yeah I was pretty keen. I really felt like my time running Federation had come to an end, and I wanted to do something else. There’s no other way to say it.”
It wasn’t until the sale process of the business that Joblin realised her value, with many would-be buyers asking her to stay with the business as part of any deal.
That sparked a conversation with her liquidator, who convinced her to buy back the business herself, leading to Federation 2.0.
Joblin said her experience returning from liquidation had been a “real learning curve”, and that it taught her as a director that she needed to understand every aspect of her business.
“It taught me that businesses need to stay adaptable. Federation had grown into a business of a certain scale, and with that came complexity. It wasn’t always easy to make changes as quickly as we needed to.
“Today, I approach business in a much more agile way. We still have a clear vision for where we’re heading, but we balance that with being completely honest about today’s reality. We know our numbers, keep a close eye on cash flow, and we’re prepared to make changes early rather than waiting.”
She was clear that this did not mean she felt a need to be an expert in everything, but knowing enough to ask the right questions to make informed decisions.
It’s also helped her surround herself with people supportive of her and the mission of the business, noting honesty is invaluable.
“Personally, it also changed how I think about leadership. When you own a business, it’s very easy for it to consume every part of your life.
“I’ve learned that looking after yourself isn’t separate from running a successful business – it’s part of it. You make better decisions when you have perspective and take care of yourself along the way.”
Today, Federation has evolved beyond clothing, with the brand selling products in other categories, including premium leather goods, jewellery, fragrance and accessories.
The business faces many of the same challenges as its competitors, including higher freight costs, which Joblin said the business had had to absorb.
Federation still works with many of the factories Joblin has relationships with in China, including some she has been dealing with for at least 15 years.
Later this year, Joblin, Dundas, and her three kids are set to travel across China for roughly a month, both for pleasure and business, with an opportunity to build relationships with the next generation.
Joblin’s three children, Ryder, Monte and Dusty, are already shaping collections, product development and the future direction of the brand.
With the retail industry continuing to feel pressure from the wider economy, Joblin had one message for those concerned, particularly those faced with closure.
“Face reality early. I know that’s one of the hardest things to do, but the sooner you’re honest about where your business is today, the more options you’ll have. Every industry evolves, and fashion in particular has changed enormously over the past few years. The businesses that survive are often the ones willing to adapt, simplify and make difficult decisions before they’re forced to.
“But also, don’t let one difficult chapter define your story. Setbacks are incredibly hard while you’re living through them, but they often become the lessons that shape the next, stronger version of your business and yourself too.”
