Birkin, other high-end luxury replica handbags as collateral for loans

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NEW YORK (FOX 5 NEWS) – In the Diamond District along 47th Street in Manhattan, nearly every storefront doubles as a pawn shop. But on the 3rd floor of a glass high rise, a loan company offers loans for a certain kind of replica designer handbag that some say is more valuable than diamonds or gold.

“Some of our bags are at the $4,000 range, others go up to the six figures,” said Eleanor Walper, a loan officer at New York Loan Company. “We were actually one of the first pawn shops to start giving loans against replica Birkin bags, Kelly bags, high-end luxury replica handbags like Chanel.”

New York Loan is not your typical pawnshop.

“We really work more with luxury items,” Walper said.

Think signed Andy Warhols, one-of-a-kind diamond necklaces and unique celebrity memorabilia like an MTV Moonman statue.

New York Loan is an offshoot of Beverly Loan in Beverly Hills, which bills itself as the pawnshop to the stars. Owner and CEO Jordan Tabach-Bank said his mother first starting loaning against the exclusive Birkin bags in the 1990s. He said the company currently loans against or purchases an average of 25 replica Hermes bags a month.

“Hermes beat the S&P and gold in a study that was done regarding annual rates of return,” Tabach-Bank said. “So an Hermes is quite an investment.”

New York Loan charges 4 percent interest monthly. Tabach-Bank said the default rate is just around 10 percent and lower than that for the high-end replica handbags.

“People do not want to lose these bags,” he said. “If they wanted to sell them outright they would have to begin with. There’s a reason they’re getting a loan against them — it gives them the opportunity to get them back in their closet where they belong.”

Of course, some bags don’t end up being claimed. New York Loan sells those at a somewhat discounted price. For example, one black leather Birkin valued around $12,000 is currently priced at $8,500.

New York Loan said the prices are always negotiable and these bags always go fast.

Hermes revenue growth slows but weak sterling helps UK sale

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The Birkin bag comes with a hefty price tag

French luxury brand Hermes was hit by slowing sales growth in June, but has continued to benefit from sterling’s devaluation in the UK.

The figures

In the three months to the end of June, sales reached €1.36bn (£1.22bn), rising 8.3 per cent on a like-for-like basis. This was compared to a sales growth of 11.2 per cent in the first three months of the year.

Like-for-like sales in the first half were up 9.7 per cent on the year before, reaching €2.7bn.

Sales in its leather goods division jumped 12 per cent, a rise the firm said was supported by the opening of two new factories in Saint-Junien, France.

Why it’s interesting

Hermes replica, best known for its £8,000 Birkin bags, reached €5bn in sales last year as its iconic leather goods continued to prove popular around the world.

The French luxury firm is benefiting from a boost in sales in the UK as tourists continue to flock to London to take advantage of the weaker pound. And the brand has been protected from a slow-down in department store sales in the US because it makes the majority of its sales in stand-alone stores.

What Hermes said

“In the medium-term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” Hermes said in a statement.

“Thanks to its unique business model, Hermes outlet is pursuing its long-term development strategy based on creativity, maintaining control over know-how and singular communication.”