LET'S TRY THESE: JESSICA’S NEW DEAL SEQUENTIAL BRANDS GROUP ACQUIRES A MAJORITY STAKE IN THE JESSICA SIMPSON BRAND. JESSICA’S PAGE 2 EDDIE’S NEW DEAL EDDIE’S BIGGER BET SEQUENTIAL BRANDS BIGGER BET GROUP ACQUIRES A EDWARD LAMPERT RAISES ANOTHER O AT 15 EDWARD LAMPERT RAISES MAJORITY STAKE IN $2.5 BILLION TO FUND SEARS HOLDING ANOTHER $2.5 BILLION TO FUND OPRAH WINFREY GETS SET TO MARK THE THE JESSICA SIMPSON CORP. VIA A NEW REAL ESTATE 15TH ANNIVERSARY OF HER MAGAZINE SEARS HOLDING CORP. VIA A NEW BRAND. PAGE 2 INVESTMENT TRUST. PAGE 7 REAL ESTATE INVESTMENT TRUST. AMID CHALLENGES ALL AROUND. PAGE 6 PAGE 7 O AT 15 OPRAH WINFREY GETS SET TO MARK THE 15TH ANNIVERSARY OF HER MAGAZINE AMID CHALLENGES ALL AROUND. PAGE 6 MEN’S SUMMIT TALKS GROWTH AFTER BID REJECTED THURSDAY, APRIL 2, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY WWD FOR SIMON AND MACERICH, QUESTION IS: WHAT’S NEXT? The Salzburg Singers NEW YORK — Pharrell Williams summed up Chanel’s Salzburg takes New York spectacular best: “This is so surreal.” The artist was rounding out his set at the post-show bash at the Park Avenue Armory on Tuesday night when he took a moment between songs to take it all in. “I can’t believe I’m here right now,” he said. He was joined onstage by his “Reincarnation” costar Cara Delevingne as the two belted out “CC The World,” the soundtrack written for the Karl Lagerfeld-lensed short, in front of an audience that included Beyoncé, Dakota Johnson and Lily Collins. For party coverage and a catch-up with Lagerfeld in Bridget Foley’s Diary, see pages 4 and 5. Men’s Summit Talks Growth AFTER BID REJECTED es and opportunities of servicing this new By WWD STAFF customer. Topics discussed included: I Targeting the $73.3 billion men’s mar- For Simon and Macerich, NEW YORK — “Men are the new women.” ket in China — the largest and most ro- That seemed to be the overriding bust category in that country; theme running through the WWD Men’s I Juggling how to make a mark at a Wear Summit, held at the Asia Society major fashion label such as Calvin Klein Question Is: What’s Next? here last week. while remaining true to its history; The male consumer’s eagerness I Zeroing in on the red-hot accessories that disconnect persist is not an option, to embrace new fashion trends and market at Saks Fifth Avenue; By DAVID MOIN and we intend to act decisively to cor- shifts in silhouettes have transformed I Exploring the expansion from leather rect the situation,” Arthur Coppola, the business, impacting everything goods to men’s wear at Coach; EVEN THOUGH SIMON Property chairman and chief executive offi cer of from traditional, classic luxury labels I Embracing innovation to enhance the Group has withdrawn its $16.8 billion Macerich, said late Tuesday night, just to activewear brands. This sea change customer experience at Under Armour; bid, that doesn’t mean the targeted after the fi rm’s board unanimously re- is happening around the world, from I Breaking out of a women’s-only men- Macerich Company is off the hook. jected Simon’s takeover offer. Europe and the U.S. to Asia. tality at Lululemon. Investors will carefully watch for Coppola cited a “rigorous” business Top executives from all walks of the For more on the Men’s Wear Summit, movement in Macerich’s stock, which on plan put forward last November, in- business offered insights on the challeng- see pages 8 to 12. Wednesday fell 6.6 percent, or $5.60, to volving “recycling” out of lower growth $78.73, after Simon’s last offer was re- assets; redeploying capital into highly buffed by the Macerich board. It’s an in- productive assets; expansion and re- dication Wall Street isn’t happy about the development projects under way, and outcome. Simon Property Group’s stock identifying additional opportunities. rose $2.35, or 1.2 percent, to $197.99. Macerich has a goal of increasing op- Now Macerich must move deliber- erating margins by 4 percent over the ately to push up the stock price by in- next 18 to 24 months through property creasing productivity at its properties expense reductions, common area en- and shedding those with little life, all hancements geared to boost revenues to prove that rejecting Simon was the and expanding its outlet business. right decision for shareholders. “We “It’s pretty clear [Macerich] needs to realize that Macerich currently faces prove they are as valuable as they think a disconnect between private market they are,” said a fi nancial source who valuations and public market views — works with Simon. a situation we have seen before. Letting SEE PAGE 7 2 WWD THURSDAY, APRIL 2, 2015 WWD.COM Sequential Buys Majority Stake in Simpson the brand’s licensing partners, including Camuto THE BRIEFING BOX By LISA LOCKWOOD Group for footwear. “Together with Sequential’s global activation platform, we believe the brand IN TODAY’S WWD JESSICA SIMPSON, the singer-reality TV star- will continue to grow in current markets and in new designer whose fashion brand flourished under markets around the globe. Camuto Group to the tune of $1 billion in retail “The opportunity to become partners with Jessica sales, is changing hands. is unbelievable,” Shmidman told WWD. He said he Sequential Brands Group Inc., has signed a de- met with Simpson and her team, and the deal grew fi nitive agreement to acquire a majority stake in organically. “Being in the industry, we’ve had our eye the Jessica Simpson brand, including the Jessica on her and her success and got to know her. I fell in Simpson Collection master license and other love with the business and the opportunity,” he said. rights, for an undisclosed amount of cash and stock. Shmidman is particularly looking forward to grow- Simpson, 34, chose Sequential as her new business ing the business in Asia, the Middle East and Latin partner and will continue to own the America. At present, the vast majority balance of the equity of her company. of the Simpson business is done in the According to sources, Sequential is U.S. “We believe there are a number looking to build Simpson’s empire into of emerging and mature markets” that a $2 billion to $3 billion operation, with would love to have Simpson’s collections, a focus on international growth. he added. Another area of opportunity Asked which categories she would would be an e-commerce platform for still like to add, Simpson said, “It’s Simpson, which doesn’t exist yet. humbling to think that we now have 31 Alex DelCielo, ceo of Camuto Group, product categories in the collection. said, “We are excited to work with Together with my mom, Tina, and the Sequential and to continue working Pharrell Williams, Helen Lasichanh, Karl Lagerfeld and Beyoncé. rest of the JS team, we are always look- closely with Jessica and the Jessica STEVE EICHNER PHOTO BY ing for new ways to reach our consum- Simpson brand. We have enjoyed many ers. I have a passion for home design, so years of success with Jessica, and we I’m excited to expand on our home and are committed and looking forward to lifestyle offerings. I also look forward many more years ahead.” Even though Simon Property Group has withdrawn its $16.8 to further developing our e-commerce Sequential has received commit- billion bid, that doesn’t mean the targeted Macerich Company site and taking our brand all over the ted financing from Bank of America is off the hook. PAGE 1 world.” She also said she looks forward and GSO Capital Partners LP, an affi li- to having her own freestanding stores ate of Blackstone Group. The transac- “Men are the new women,” seemed to be the overriding both in the U.S. and abroad “where I tion, which is slated to close in 90 days, theme running through the WWD Men’s Wear Summit, held at can dress a woman from head to toe, is expected to be immediately accretive. the Asia Society here last week. PAGE 1 while offering them a more complete David Levin of David Levin Business experience of who I am.” Management and Charles Grimes of Wealth, creativity and craft were on powerful view at Chanel’s Vince Camuto, the late founder and Jessica Grimes LLC were responsible for struc- Métiers d’Art show at the Park Avenue Armory on Tuesday night, chief executive offi cer of Camuto Group, Simpson turing the transaction on behalf of which hosted guests including Pharrell and Beyoncé. PAGE 4 who died Jan. 21, bought the master li- IMAGES FOR JESSICA JAMIE MCCARTHY/GETTY SIMPSON COLLECTION PHOTO BY Simpson and advised her on valuation, cense for Jessica Simpson in 2005 for $15 intellectual property and licensing mat- Cruise collections are a moving target this season. Dior, million. With the closing of the new deal, Camuto’s ters. Mitchell C. Littman of Littman Kroos LLP advised which had planned to stage its show in Los Angeles on May 9, master license for the Jessica Simpson Collection has Simpson on corporate legal matters. The deal team has decided on a new country and date. PAGE 6 been replaced with a new, long-term license to manu- that represented Sequential during the acquisition facture and distribute footwear. All of Simpson’s other was led by Tengram Capital Partners. Gibson Dunn ad- Terry J. Lundgren saw his total compensation as Macy’s Inc.’s licensing agreements are expected to stay in place, vised Sequential on legal matters.