 Despite thriving sales, the company was dogged by poor management and had to close the New York store in 1986; Betsey Johnson has suggested "Fiorucci was the most happening place.It never stopped being happening — it just left New York City, because I don't think New York City was happening enough by the mid-80's".Fiorucci closed down the rest of the US retail locations in 1988 after a franchise dispute, moving instead to a wholesale strategy.