A Hawai'i entrepreneur who two years ago opened the first Vera Wang-branded boutique selling a broad line of merchandise designed by the famous New York fashion maven has decided to close the store in Waikiki.

Donna Bebber said her Vera Wang Boutique at the Halekulani hotel will close following a liquidation sale primarily because Wang's company discontinued its line of fine jewelry.

Bebber said the jewelry discontinuation along with expanding distribution of Wang-designed merchandise at other retailers hurt sales at her boutique.

"It was a difficult decision because I love the products," she said.

Vera Wang Boutique opened a couple of years ago as the first Vera Wang-branded store outside of a bridal salon and a bridesmaids store in New York. Those stores are overseen by the famous wedding dress designer also known for creating $10,000-plus evening gowns for celebrities.

The Waikiki boutique carried Wang-designed items including jewelry, fragrances, crystal, china, lingerie, eyewear and stationery. The store's location also tied in with a Wang-designed suite in the hotel that opened in mid-2005 and rents for $5,000 a night.

A few other retailers such as specialty stores and Macy's and Neiman Marcus department stores carry select Wang merchandise in Hawai'i, though the Vera Wang Boutique had exclusive local distribution of the designer's jewelry, according to Vera Wang's Web site.

"That was a very big seller for us," Bebber said. "Without the jewelry, we just did not have the margins to make the store work."

Bebber said Wang's continuing expansion into more mainstream distribution channels like Costco and mid-market Mainland department store chain Kohl's seemed to dilute the brand's sense of exclusivity for consumers.

A Vera Wang representative did not respond to a request for comment yesterday. Halekulani Corp. said Bebber's decision to close the boutique will not affect the suite. "This matter has no bearing on the Vera Wang Suite at Halekulani, which continues to be an unprecedented success," the company said in a statement.

Bebber said her store likely will close sometime around mid-January as soon as remaining merchandise can be sold at discounted prices.

Vera Wang Boutique was the first retail business venture for Bebber, a former development vice president for the Honolulu Symphony. But she said she will try again with a retail business plan involving local artists.

Bebber declined to disclose details of her new plan yesterday but hopes to reach an agreement to open the store at the Halekulani or another location in Waikiki.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.