Should He Stay or Resign?

Now that New York City Mayor Eric Adams is facing a criminal indictment for allegedly getting $10 million fraudulently in public funds and luxury travel perks, fashion industry insiders are mulling over what this means for the city and the industry.

As the first sitting mayor to be handed a criminal indictment, he is facing five federal charges including bribery, campaign finance and conspiracy offenses.

Adams, a Democrat who took office in 2022, has said he will fight the charges and will remain in office.

In the indictment released by the U.S. attorney for the Southern District of New York Damian Williams, Adams allegedly took improper and illegal benefits from foreign nationals including claims of allowing the Turkish consulate’s Manhattan 36-story skyscraper to open without a fire inspection.  Authorities claim Adams did so in September 2021 for free travel and travel-related bribes, otherwise the building would have failed a fire inspection.

The indictment alleges that Adams used his prominent positions in New York City government to obtain illegal campaign contributions and luxury travel by soliciting and accepting these benefits from foreign nationals, businessmen and others for nearly a decade. That dated back to when Adams served as the Brooklyn city borough president. There are also allegations that Adams sought and accepted illegal campaign donations, and other things of value, for his 2021 mayoral run. There are also claims that as Adams gained prominence and power, his foreign-national benefactors sought to cash-in on their alliances especially after he became mayor in 2021.

With news of Adams’ indictment generating global headlines, and the 79th session of the United Nations‘ General Assembly still in session in New York City, millions have turned their attention to the Big Apple. Thursday’s unsealing of the indictment and federal agents’ search of Gracie Mansion earlier in the day follow weeks of turmoil in the Adams’ administration. On Tuesday, the head of New York City’s school system David Banks announced his departure at the end of this year — just weeks after federal agents seized his phones. Authorities have also taken electronic devices belonging to the former police commissioner Edward Caban, who stepped down earlier this month, as well as those belonging to two deputy mayors and another key Adams adviser.

How, if at all, the upheaval in the Adams administration could potentially impact tourism and the amount of day-trippers visiting New York City remains to be seen. Last year the city’s tourism industry accounted for $74 billion in economic impact, according to New York City Tourism and Conventions. Either way the fashion industry is a major moneymaker to the city’s economy with fashion-related retail, wholesale and distribution, along with textile, apparel, footwear and jewelry manufacturing contributing more than $50 billion in direct sales and $45 billion in indirect sales to the city in 2022, according to McKinsey’s “At a Crossroads: New York City’s Status as a Global Fashion Capital” report. In addition, there were more than 130,000 jobs in the sector at that time.

Adams has supported American designers and creatives during his administration. He has hosted New York Fashion Week kickoff cocktail parties at Gracie Mansion with the CFDA and Condé Nast’s Anna Wintour in years past, but that was not the case this month. Adams also has turned up at the Met Gala on occasion.

The city also reels in thousands of students each year to attend design-focused institutions like The New School’s Parsons School of Design, the Fashion Institute of Technology and Pratt Institute. Representatives at The New School declined to comment and a FIT spokesperson said the school’s president Joyce Brown was unavailable. A Pratt spokesperson did not respond to media requests Thursday.

As a few officials like U.S. Rep. Alexandria Ocasio-Cortez (D-N.Y.) have called on Adams to step down — more than a year before the next mayoral election — some fashion leaders seem to be taking a wait-and-see approach. The Council of Fashion Designers of America also declined to comment about the indictment, what it means for the city and whether Adams should remain in office, as did the Retail Council of New York State’s president and CEO Melissa O’Connor, and the Fashion Group International’s president and CEO Maryann Grisz. In addition, the 34th Street Partnership’s leader Dan Biederman, and fashion designer Nanette Lepore, a champion of New York City manufacturing, also declined comment.

Diane von Furstenberg was traveling and was unavailable to comment, as was Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, according to representatives for them.

Here are what some executives said Thursday.

Barbara Blair, president of the Garment District NYC

“Instability in the governance of our city is not a good thing. We have a lot of work still to do to reclaim good conditions on our streets and in our neighborhoods, to find a more lasting and stable solution for our migrant challenges, to create vastly more housing, in order to ensure that we remain a destination city for jobs and job seekers and to address major infrastructure improvements that are well-past their expiration dates. This is not the time for the council or state to do anything that further rocks the boat, but rather hold steady and judiciously, not opportunistically.”

Susan Scafidi, founder and director of the Fashion Law Institute

“Whether or not the mayor remains in office, the uncertainty created by the situation is bad news for an industry that thrives when the public is confident, secure and optimistic.

“Post-pandemic recovery has been complicated by matters that relate directly to city governance, including concerns about crime, an influx of immigrants with inadequate shelter and the COVID-19-era exodus of affluent residents from the city.  Whether a consumer is considering a gown for a gala or a luxury lipstick, or a tourist is choosing between New York and another destination, fear that the city is experiencing a lacuna in leadership could dampen spending as we approach the all-important fourth quarter and holiday sales.” 

Kathryn Wylde, president and chief executive officer of the Partnership for New York City

“In a moment of crisis, the stability of the city and the continuity of municipal services are the top priorities of the business community. There are competent and trusted professionals who manage the critical functions of government. New Yorkers should support them and express our confidence in their ability to stay the course. We must allow the legal process to take its course, including a full assessment of a substantive response from the mayor to the charges against him.”

Evie Evangelou, founder of Fashion 4 Development

“I honestly don’t know any of the details on this, and I also think that’s for courts to decide. Obviously, it’s not a good image for New York to have an indicted mayor. But again, innocent until proven guilty is what our system abides by.”

Stan Herman, fashion designer and former president of the CFDA

“I can’t make any judgment until I know more. I would think that as a fellow Virgo, he would do the right thing, as any good mayor should.”

Yeohlee Teng, fashion designer and an advocate for New York City manufacturing

First of all, it’s not a good thing that this happened for the city. It’s a blemish on the city and it could affect the perception of who we are and what we are about. Hopefully, this doesn’t affect tourism. But it’s a matter of innocent until proven guilty.