26 Most Fascinating Entrepreneurs: Diane von Furstenberg

Diane von Furstenberg Diane von Furstenberg Studio

for staging an elegant comeback

Diane von Furstenberg faced a bitter quandary when she returned to the American fashion scene in 1990: Her signature product, the wrap dress, hung in the Smithsonian, yet no stores would carry it. “My brand meant nothing,” she says. “I had become a has-been.”

The Belgian-born von Furstenberg had made her mark on the New York fashion world in 1972 with her versatile dress, which was appropriate for the office yet sexy enough for a night at Studio 54. During the next few years, she sold five million of them. Then the market became saturated, sales dried up, and she sold most of her licenses to avoid bankruptcy. “I lost control,” she says. She retreated to Europe.

In 1992, the designer embarked on a comeback. She started Silk Assets, one of the first clothing lines for QVC. “It was tacky, but it gave me confidence,” she says. Then she founded Diane von Furstenberg Studio to design moderately priced apparel sold at upscale department stores. The latest wrap dress, for example, retails for $298. The line has been a hit with consumers and critics alike, and the business turned its first profit in 2003. For von Furstenberg, 58, whose fall 2005 collection features a Russian theme, success has been sweeter this time. “I was on the cover of Newsweek at age 29,” she says. “To do it again now, that’s even better.”

Nadine Heintz

1. Martha Stewart, Martha Stewart Omnimedia

   because she took one for the team

2. Richard Branson, Virgin Group

   because he’s game for anything. In fact, everything.

3. Michael Dell, Dell Computer

   for being brilliantly straightforward

4. Jim Sinegal, Costco

   because who knew a big-box chain could have a generous soul?

5. Diane von Furstenberg, Diane von Furstenberg Studio

   for staging an elegant comeback

6. Julie Azuma, Different Roads to Learning

   for offering hope and help to the parents of autistic children

7. Fritz Maytag, Anchor Brewing

   for setting limits

8. Ray Kurzweil, Kurzweil Technologies and other companies

   because he is Edison’s rightful heir

9. Craig Newmark, Craigslist

   for putting the free in free markets

10. Jack Mitchell, Mitchells/Richards

    because his family business makes an art of customer service

11. Frank Robinson, Robinson Helicopter

    for whipping an entire industry into shape

12. Mark Melton, Melton Franchise Systems

    for giving immigrants their shot at the American Dream

13. Michelle Cardinal & Tim O’Leary, Cmedia and Respond2

    for rewriting the rules for husband-and-wife teams

14. Mike Lazaridis, Research in Motion

    because someone had to stand up for all those frustrated engineers

15. Trip Hawkins, Electronics Arts and Digital Chocolate

    for still scrapping

16. Warren Brown, Cake Love and Love Cafe

    because only in America will someone quit a secure job as a lawyer to start a bakery

17. Muriel Siebert, Muriel Siebert & Co.

    for being a notable first with a worthy second act

18. Chuck Porter, Crispin, Porter + Bogusky

    for verging on reckless

19. Katrina Markoff, Vosges Haut

    for setting a completely unreasonable goal for her business

20. Barry Steinberg & Craig Sumerel, Direct Tire and Auto Service

    for showing the power of the peer group

21. Victoria Parham, Virtual Support Services

    for serving as a mentor to military spouses

22. Tom LaTour, Kimpton Hotels and Restaurants

    for staying at fleabag hotels so that we don’t have to

23. Mitchell Gold & Bob Williams, Mitchell Gold

    for creating a true comfort zone

24. Izzy & Coco Tihanyi, Surf Diva

    for kicking sand in the face of conventional wisdom

25. Tony Lee, Ring Masters

    for saving 16 jobs, including his own

26. Rueben Martinez, Libreria Martinez Books and Art Galleries

    for simultaneously building a business and nurturing Latino culture