Djerf Avenue backlash: The cult of the founder has risks and rewards

Comments, questions or feedback? Email us at feedback@voguebusiness.com. Influencer brands tend to be intrinsically connected to the identity of their It-girl founder. What happens when that founder falls from grace? That’s what Djerf Avenue is grappling with right now, after claims surfaced around a toxic work culture allegedly incited by founder and influencer Matilda Djerf. The allegations are based on 11 interviews with former and current employees, first reported by Swedish tabloid Aftonbladet, and detail a culture of “psychological terror” and discrimination toward plus-size and ethnic minority employees and models (including allegedly making fatphobic comments about a model after a photoshoot). Employees said that, as a result of the culture, they suffered with loss of sleep and appetite, panic attacks and came home from work most days crying. Outraged fans commented under Djerf’s most recent Instagram post. “I’m so shocked and disappointed. Why include plus-size offerings and marketing when you’re [making fatphobic comments about] models who don’t meet your expectations?” said one (the brand is known for offering XXS to XXXL and displays products on models of each size). “So terribly mean of you to speak to your employees like that, you should be ashamed,” added another. “The boycott is on,” said one. In a statement shared with Vogue Business, Djerf said she takes the accusations “very seriously” and apologised. “If any team member has felt mistreated in their role because of my actions, I am deeply sorry, and I want to sincerely apologise. It has never been my intention to contribute to a work environment that affects anyone negatively, and it saddens me that there are team members who have had such experiences,” she said, adding that the concerns have given “both me and Djerf Avenue the opportunity to grow and improve” and that she is seeking leadership coaching. “I don’t recognise myself in all the claims that have been made, and I’ve chosen not to comment on individual cases,” she said. Djerf Avenue, which was founded in 2019, has primarily found its success thanks to a loyal online community, particularly on TikTok, many of whom are fans of Djerf herself. This is what gives it an edge over fast fashion competitors, Djerf said in a 2022 Vogue Business interview. Djerf was crowned an It-girl thanks to her signature ’70s bouncy blowout (she launched a haircare line in March), and her relatable style and personality. Djerf Avenue’s products are inspired by Djerf’s Scandi-girl wardrobe, including recreations of vintage oversized blazers and shirts. The timing isn’t great for Djerf. At the start of December, she launched a collaboration with Hailey Bieber’s beauty brand Rhode, introducing a new peppermint edition of Rhode’s Peptide lip treatment (Rhode did not respond to requests for comment around the impact of the fallout on the collaboration). In late November, Djerf Avenue opened a pop-up in London, which had fans queuing down the street (it ran until 8 December). The Djerf Avenue scandal points to the potential pitfalls of having a hero founder, particularly one who is an influencer. This has been an ongoing concern for influencer brands, and in some cases has ended badly. For example, Tati Westbrook exited her brand Halo Beauty after a four-year legal battle around her alleged fraud, negligence and breach of fiduciary duty (Westbrook did not admit to any wrongdoing, but settled the case). In the exposé, an employee claimed that they spoke to HR and Djerf Avenue’s CEO about their mistreatment, but were told: “That’s how it is. What do you want us to do? We can’t fire Matilda.” When the hero founder falls from grace The benefit of having a famous founder is clear. A built-in audience can help a brand scale up — and fast — which is rare in an environment where so many fledgling brands are struggling. Yet, this also means the brand may scale before the founder has learnt the necessary skills to be a good leader. “Generally as an entrepreneur it takes years and years to get to where [Djerf] is today. It comes from grinding with your employees, which formulates a level of respect,” says Joe Gagliese, co-founder and co-CEO of social-first agency Viral Nation. “[Djerf’s] personal brand is the nucleus of the brand ethos. Her business is more geared towards her personal brand than it is the product, and people are buying the brand to be part of what she’s created,” adds Gagliese. Other influencers have a different approach. Tala — founded by Grace Beverley, who started out as a fitness influencer — began as an athleisure label tied to Beverley’s personal brand, but has evolved as it has expanded. Beverley still has a strong presence as founder, but the audience retention is primarily thanks to the product offering. The shift was intentional. “Being an influencer merch brand is fine and it has its value. But capping the brand’s growth at myself and my own reach, where being an influencer actually isn’t even what I want to do, wasn’t what I wanted for my future or for the brand,” Beverley told Vogue Business last year. There are risks involved with the audience’s disproportionate connection to the founder. Gen Z is prone to parasocial relationships — meaning a one-sided intimate bond — with large influencers, writer and critic Alexandra Hildreth explains. “They tend to hold influencer businesses accountable and express disappointment like they would a friend. Because of this parasocial-celebrity middle ground, I don’t think there is any separation between the founder and the brand when things go wrong or toxic environments are created, especially if the founder is very prominent and the face of the visuals and creative direction,” she says. At the same time, female founders tend to be held to higher moral standards than male counterparts. In this sense, the fall from grace can be more intense, as is the nature of the exposé. However, Gagliese says the allegations around Djerf sit outside the normal course of business. “In a lot of ways, these aren’t work problems and don’t have a place in the workplace. These are people problems. This is a respect problem,” he says. What does good crisis management look like in this scenario? “When a brand is so related to the founder’s brand, it’s imperative from a crisis management perspective to take responsibility and kill them with honesty, just truly take ownership,” says Gagliese. For a founder with a public profile like Djerf, there’s even the opportunity to share what she learns in leadership coaching (especially because Gen Z loves a redemption arc). “This is definitely a learning and growth opportunity for her. The reality is there are probably thousands of people who are jealous of her or want her to fail, so you can’t put yourself in a situation where it’s so easy for folks to point the finger at you and take you down.” Gen Z TikTok brands are changing how we shop Can influencer-founded beauty brands still go the distance? Inside the growing backlash against celebrity skincare brands

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