Natural High NEW YORK — Coty Inc
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CHRISTIE BRINKLEY’S RETURN/12 DOLCE & GABBANA IN CHINA/18 WWWDomen’s Wear Daily • The Retailers’FRIDAY Daily Newspaper • April 15, 2005 • $2.00 Beauty Natural High NEW YORK — Coty Inc. is betting the farm that mass market shoppers crave organic personal care products, with a new natural products collection from The Healing Garden. Called Organics, the venture is meant to provide a new marketing platform for the specialty bath brand. The first installment, Organics Wild Honey, will bow in July and could do up to $10 million in first-year sales. For more, see page 10. Slimming Saks: Belk Said Near Deal to Buy Proffitt’s, McRae’s By Vicki M. Young situation said a tentative accord was agreement is completed and signed. Y BRYN KENNY NEW YORK — Splitting up its reached earlier this week, though a Belk, based in Charlotte, N.C., is department store group, Saks Inc. is purchase price could not be the largest privately held U.S. said to be close to an agreement to sell immediately determined. Saks is department store company. Proffitt’s and McRae’s to Belk Inc. publicly held and would be required An announcement is anticipated People with knowledge of the to disclose the sale when an See Belk, Page 16 PHOTO BY THOMAS IANNACCONE; STYLED B PHOTO BY 2 WWD, FRIDAY, APRIL 15, 2005 WWD.COM House Approves Bankruptcy Reform By Kristi Ellis profits of the credit card industry.” Pelosi called the bill “harsh, punitive and WWDFRIDAY Beauty WASHINGTON — The House approved a major mean-spirited” and noted it would be particular- overhaul of the bankruptcy laws on Thursday, ly harsh on women, who are the largest single legislation long sought by retailers and credit group filing for bankruptcy. She argued there is GENERAL card companies, which requires more people fil- no evidence of widespread abuse of bankruptcy Saks Inc. is splitting up its department store group and is said to have an ing for Chapter 11 to repay at least a portion of protection. 1 agreement in principle with Belk Inc. to sell Proffitt’s and McRae’s. their debt. Lugar, however, said: “After seven years of The House easily passed legislation long sought by retailers and credit card The 302 to 126 vote completes Congressional hard work, this is an enormous victory for 2 companies aimed at overhauling the nation’s bankruptcy laws. action on the measure and marks a victory for American retailers and American consumers.” President Bush, who supported it in the face of Paul Kelly, senior vice president of govern- Estée Lauder is expected to unveil another step today in the venerable opposition from consumer groups. It will take ef- ment affairs for the Retail Industry Leaders of 2 brand’s continuing evolution by naming a slew of executives to new posts. fect six months after being signed by the America, said: “It’s fair to businesses to require BEAUTY: The FiFi’s were heavy on celebrities, but appropriately for a President. people who have the means to at least pay back 6 ceremony that will be televised in May, its biggest star appeared via TV. The measure, known as the Bankruptcy Abuse a portion or get on a schedule to pay back a por- Dolce & Gabbana opened its first store in mainland China at Hangzhou’s Prevention & Consumer Protection Act of 2005, tion of their debt. That’s what this bill will do.” EuroStreet, a new luxury mall on the shores of the city’s West Lake. creates an income-based test that excludes living Lugar, noting that a family of four living 18 expenses, but includes child support in deter- below the median income of roughly $51,000 mining an individual’s ability to repay. It re- would not be affected by the overhaul and could SUZY quires individuals who can afford to repay a sig- still file for Chapter 7, said: “We’ve always said Social Notes from All Over…Everyone wants Olivia Newton-John’s nificant part of their debt to do so under Chapter from the get-go the bankruptcy system is there to 4 HotPants, but she’s not giving them up…A Bronx paradise. 13 of the federal bankruptcy code, which re- protect those who truly need it, those who get quires repayment, instead of Chapter 7, through sick or divorced and need a safety net.” Classified Advertisements........................................................................19 which they can erase all of their debts. Debtors The legislation benefits retailers by increas- To e-mail reporters and editors at WWD, the address is whose adjusted monthly income is more than 25 ing the limit on purchases of luxury goods or [email protected], using the individual’s name. percent of their unsecured claims or $6,000, services that can be shielded in bankruptcy. It WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 whichever is greater, would be barred from filing also makes it easier for merchants to approach FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. under Chapter 7. VOLUME 189, NO. 81. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one debtors in bankruptcy with reaffirmation agree- additional issue in June; two additional issues in April, May, August, October, November and December, and three additional The number of people seeking to wipe out ments that allow them to keep merchandise issues in February, March and September, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL debts in bankruptcy has more than doubled to bought on credit by renegotiating payment OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill 1.6 million a year in the last 10 years. Katherine schedules. Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Lugar, vice president of legislative and political There are a couple of wrinkles in the bank- Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at affairs at the National Retail Federation, said ruptcy rule changes that could create problems additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration an average household of four pays about $550 a for retailers who file for bankruptcy themselves. No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, year in the form of higher costs passed on by ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR The bill sets a 120-day deadline for bankrupt SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR merchants absorbing bad debt. She said bank- tenants in shopping malls to decide whether DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is ruptcy filings have been skyrocketing, notably they will terminate their lease and it can be ex- required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production among people making more than $100,000 a year. tended once for 90 days. While tenants now have correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, Opponents said the bill would strip protec- 60 days to decide about store occupancy plans, a please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully tion from the people who need it most. judge may extend the period indefinitely. In ad- screened companies that offer products and services that we believe would interest our readers. If you do not want to receive House Minority Leader Nancy Pelosi (D., dition, a shopping mall provision in the bill these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. Calif.) argued during the one-hour floor debate WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED would bar a retailer in bankruptcy from sublet- MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND that the bill was “rewarding irresponsible corpo- ting a space to a tenant that doesn’t match the TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART rate behavior and fattening the already large mix of tenants in the center. WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. Lauder to Tap New Team Quote of the Week “Quality of product is number one. By Julie Naughton Daniel new position June 1. Annese Alicia Valencia, who is vice If I were designing ready-to-wear NEW YORK — Two days after president of strategic planning, inking a deal with Tom Ford, will become vice president of right now, that’s what it would be Estée Lauder’s John Demsey sales and marketing, Latin Am- and Thia Breen are expected to erica and Hispanic markets, for about — real, true value.