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SUPERMODEL SUPERMOGUL OUTSELLS —AND SHE’S RICHER, TOO. THE STRANGE BUT TRUE TRIUMPH OF A SWIMSUIT ICON. SUPERMODELFORBES SUPERMOGUL The strange but true story of how swimsuit icon Kathy Ireland turned America’s most mundane products into a licensing empire—and became the first lady of flyover country.

BY DOROTHY POMERANTZ PHOTOGRAPHED BY MICHAEL GRECCO FOR FORBES

t’s staff meeting time for the biggest slapping her name—onto more than 15,000 on what I saw, she would consider Kathy retail brand you’ve never heard of, products, few of which jibe with the image Ireland toilet plungers or Kathy Ireland which at Kathy Ireland Worldwide most people have of her. roach motels if she could argue they help means marching up the hills outside This swimsuit model doesn’t sell swim- busy moms—proves a valuable trait in li- Santa Barbara to the eponymous suits, and while many women may still as- censing, a strict volume business. That $2 founder’sI mission-style home for a corporate sociate her name with a clothing line at billion at retail (for comparison, Martha version of “I’m OK, You’re OK.” As the , she barely sells clothes anymore, ei- Stewart sells about $900 million at retail, coastal air tempers the bright California ther. The bulk of her success comes instead based on industry estimates) translated sun, 15 staffers dressed in casual black sprawl from the kind of stuff that has likely never into about $850 million in wholesale sales on the plush sofas or sit cross-legged on the seen a celebrity’s name adorning it: ceiling last year, of which Ireland got a royalty floor. An Academy Award rests nonchalantly fans, flooring, mattresses. And above all payment of roughly 6%. That’s around on an end table, lending a surreal touch. there’s furniture: desks, end tables, media $50 million in revenue for Ireland’s com- “Don’t ask about the Oscar,” one of Ireland’s centers, beds, ottomans and bookcases. pany, and with a meager staff of 42—the confidants says to me furtively. (It was from There are area rugs, carpets and headboards. beauty of licensing, of course, is that every- another fashion diva with a flair for retail, And lots and lots of windows. One of the one else has to actually make and sell the .) biggest pieces of the Kathy Ireland empire stuff—the vast majority of that is pure The group’s breathing golden idol sits, is her namesake vinyl and plastic replace- profit, flowing straight into pockets of chin in hand, in the middle of this group. At ment windows, which purportedly insulate Kathy Ireland Worldwide’s photogenic 48 Kathy Ireland is still as stunning as when heat inexpensively; a retail outfit called 100% owner. she appeared in 13 consecutive Sports Illus- Window World moves $400 million of trated swimsuit issues, including three covers them a year. KATHY IRELAND WAS an entrepre- (albeit now with bigger hair). “Thank you,” If there’s any consistency to this grab neur long before she was a model. As a she says in her small voice as the group kicks bag that is Kathy Ireland Worldwide, it’s child in Santa Barbara, she painted off a brainstorming session about social the target audience: Middle America’s stones, and rather than place them on media. “Thank you,” she repeats as ideas fly moms. There’s a certain magic in placing her shelf to admire, she peddled them about ways to gain her company a bigger a glamorous ’s name on mun- door-to-door (her grandmother carried presence on Twitter and Facebook. “Thank dane products aimed at an everyday audi- one in her purse for protection) and you,” the group responds, the only two ence. “I can see your compassion for eventually sold other art projects at words invoked more over the next hour moms,” tweeted one fan. “Can’t wait to weekly crafts fairs. At 11 Ireland noticed than “excuse me” and “please.” read your book!” (Ireland has published an ad beckoning newspaper deliverers: If this isn’t how America’s best-known six.) With three children and four dogs, “Are you the boy for the job?” Ireland licensor, the famously demanding Martha Ireland fronts the brand credibly. When I wrote a note to the editor saying she was Stewart, might do business, so be it. Kathy request a coaster before putting down a the girl for the job, and she got it. Ireland sells more product—some $2 billion glass on a rustic wooden table at her Ireland was earning $60 a month when at retail—and she’s worth more, too. If house, Ireland waves her hand dismissively. she decided it was time to get her own Martha Stewart represents WASP perfection Stewart might create a Thanksgiving din- bedroom. She rang up a contractor for an (and those who aspire to it), then Kathy Ire- ner spread worthy of a magazine; at Ire- estimate on what it would cost to add a land rules flyover country (and those content land’s place dogs lounge on the furniture. room to the modest house she shared to stay there), bequeathing her taste—and/or The ex-model’s elastic brand— based with her parents and two sisters. “My mom found me in the driveway showing agreed to pay for manufacturing and dis- running children don’t get hurt falling on him where I wanted my room to be,” tributing the socks that Ireland would de- the edges. recalls Ireland. “I knew exactly what it sign and promote. In return Ireland would The furniture business showed potential, was going to look like, what the furnishing get a royalty on every pair sold. She took and within a year Ireland signed with Berk- would be. Then he gave me his bid, and it out a $50,000 personal loan to launch shire’s Shaw Industries to expand into car- was something like $20,000.” Kathy Ireland Worldwide. pets, flooring and floor tiles. She remains a The room would have to wait—but not Moretz was able to get Kathy Ireland staple for the company. long. In 1980, at the age of 16, Ireland was athletic socks into sporting good stores As the furniture side of her business discovered at a finishing school (where like Big 5. Intrigued, he quickly bought the grew, so did Ireland’s confidence: She took her parents were trying to clean up their rights to license exercise clothes, bodysuits a more active day-to-day role, and Moretz tomboy daughter) by the Elite Modeling and eventually swimwear. Moretz became became more of an advisor, garnering an Agency. Within four years she was featured the master licensor for Kathy Ireland, sub- increasingly smaller cut of her action. In in the Sports Illustrated swimsuit issue, licensing her name to companies that made 2003 she even found the gumption to and in 1989, when she graced the cover for things besides socks and collecting 30% of finally dump Kmart, which had come out the first time, it became SI’s best seller that revenue stream to Ireland’s 70%. His of bankruptcy. “It’s heroic for a busy mom ever. Internationally famous, she was one biggest coup: helping her get an exclusive to go to a store,” says Ireland, always quick of the group, which included Christie deal in 1994 with Kmart, which envisioned to lionize her core customer. “If she goes Brinkley and , that spawned turning her into the apparel version of to a retailer and she has a bad experience the term “supermodel.” their star, Martha Stewart. she’s mad and rightly so.” “We joke that there’s still the Kathy Ire- While Moretz did the heavy lifting on The most audacious aspect of the Kmart land standard,” says MJ Day, senior editor her clothing line, Ireland dabbled in fitness decision: She had no immediate plans to of SI’s swimsuit issue. “She’s kind of the videos (like 12 Minute Abs, Buns and Thighs), get back into apparel. Kathy Ireland was complete package.” nonprofit work (March of Dimes and AIDS officially a brand, transcending the products During her modeling period her entre- LA) and acting. She was making good one would expect a supermodel to offer. preneurial side ventures were whiffs, money but was far from a mogul. Accordingly, Ireland has spent the last such as the time she became entranced That changed in 1998, when she decided decade or so moving her company into with making beer with a bunch of gradu- to expand into furniture. , logical “busy mom” offshoots, sharing her ate students. In 1993 John Moretz, a mar- who appreciated their shared experience aura with field experts, as necessary. Her keter who later bought Gold Toe socks, as newspaper deliverers, once told her ACafe brand, with chef Andre Carthen, approached Ireland with the kind of gig that fashion changes but the home remains boasts kitchen candles, jewelry and kitchen that signals a model’s best years are far more secure. In apparel every celebrity knives. She’s teamed with landscape artist behind her: Did she want to model pedes- with a Q rating above zero either had a Nicholas Walker on Jardin—who also de- trian socks? line or was pitching one. But precious few signed Elizabeth Taylor’s gardens—which “She’s the girl next door who happens celebrity licensors dabbled in home fur- offers budget-minded outdoor products. to be beautiful,” says Moretz. “That forms nishings, even though the dynamics of And in buying the Sterling/Winters pro- an emotional bond with the consumer.” buying a dresser are no different from duction and management company she Pregnant with her first child, rather buying a dress. “A known brand name now owned the company that had produced than shoot him down in a fit of celebrity gives people a comfort level when buying,” her made-for-TV Christmas movies (Once pique, she made a counterproposal. What says furniture industry analyst Wallace Upon a Christmas and Twice Upon a Christ- if they went into business together making Epperson. mas) and workout videos. The supermodel and selling Kathy Ireland socks? “I wanted In 1999 Ireland went to the biannual had come full circle. to make it clear to them that I didn’t want furniture convention in High Point, N.C. to just put my name on it,” says Ireland. with a line of sofas, chairs and end tables. WHILE IRELAND’S success is stagger- “An endorsement wasn’t interesting to me.” “She had a passion and she was very ing, it’s also unconventional. She admits Moretz agreed. He bought the rights to smart,” says Irv Blumkin, head of Berkshire that she barely graduated from high use her name on a line of socks, and he Hathaway’s Nebraska Furniture Mart, a school, and while her entrepreneurial 450,000-square-foot megastore that helps instincts have proven excellent, she hap- drive the direction of the industry. “As she pily delegates the nuts and bolts of the told me the stories of her different products business to others. Ask for financial “I WANTED TO MAKE I felt we should give her a chance.” details and she’s quick to insist that for With furniture Ireland mandated that her business is more about investing in IT CLEAR TO THEM her brand would mean something: “Finding people than profits, whatever that means. THAT I DIDN’T WANT solutions for families, especially busy And while she’s happy to meet with moms,” which is now the company’s motto. retailers, she assiduously avoids grand TO JUST PUT MY So rugs were treated with a spill protection openings, despite her drawing power. NAME ON IT.” chemical that also holds the colors and al- “We’ve tried it, and it doesn’t work,” says lows the rugs to have longer lives. Tables Ireland. “What happens is the store gets were designed with rounded corners so cluttered with guys who are there with KATHY AND MARTHA the design of a bed headboard. tion to selling at retail. She’s planning a line She designed one rug based on of Kathy Ireland shops in Europe and Asia. Stewart is the media powerhouse, but shells she collected with her And she’s even returning to her first busi- low-pro!le Ireland has moved more children in Hawaii. Tough work ness, apparel. Although she already has a if you can get it. line of furs at Macy’s and a new bridal line merchandise—and made more money. Her design ideas are then at Mon Cheri, soon she’ll be selling every- boiled into the company’s eight thing from bras to jeans to business suits. AGE style guides, which are created All of this adds up to a very valuable 48 70 by the professional designers company. Given the likely cash flow—figure within the company. So the $35 million on that $50 million or so in HEADQUARTERS “Ivory Coast” guide features royalties—Kathy Ireland Worldwide is CALIFORNIA NEW YORK animal prints, desert colors and worth, based on public licensor compara- COMPANY “sun-kissed skies.” A Russian bles, somewhere around $300 million. PRIVATE PUBLIC guide evokes snowflakes, bal- (Martha Stewart’s holdings in her company lerinas and the peasant-chic currently sit at around $250 million.) And ANNUAL MERCHANDISE SALES styling of Dr. Zhivago. Manu- remember that, other than around-the- $2 BILLION $900 MILLION facturers like Vaughan and world forays, there’s precious little need Bonavista then take her ideas for Ireland to reinvest her cash stream into PERSONAL NET WORTH (ESTIMATE) and guides and design the final the business. So she’s amassed a formidable $350-$400 $300 product (with lots of input and collection of jewelry, which she chose with MILLION MILLION approval rights from Ireland the help of her jewelry mentor, Elizabeth and crew). Her customers can Taylor. She considers the $25 million col- access the style guides as well, lection too expensive to keep in her home, positioning Ireland as their so it stays in a bank vault in Los Angeles. 500-year-old copies of Sports Illustrated. tastemaker—and, it is hoped, encouraging She also has properties in California, Nevada How does that help a busy mom? These them to buy more of her products, across and (Ireland has been a devout people are just in her way.” multiple lines. Christian since 18, whose “first and last Instead, Ireland embraces her role as There will be more to buy. She’s launch- meeting of every day is with God”). chief designer. Every one of those 15,000 ing a new retail arm with her original part- With a business spouting cash and a rugs, candles and windows originates from ner and on-and-off Svengali, Gold Toe’s staff ready to convene in her living room, something that struck her. So Ireland Moretz, with the goal of penetrating the Ireland has no desire to go public or sell. spends part of the year traveling the globe, few “busy mom” categories she doesn’t al- The prom queen of busy moms, in fact, looking for inspiration like some poet of ready have: things like shoes, hair care and maintains that her brand remains an infant. commercialism. A beautifully rusted gate perfume, all of which will be offered direct “We have a long way to go,” she says, flash- she saw in Liverpool once helped inspire to consumers through her website in addi- ing a runway smile. F

INSIDE IRELAND INC. Yes, the former model once hawked clothes for Kmart. But now she’s behind 15,000 licensed products—and other ventures.

FURNITURE JEWELRY ACAFE SOCIETY JARDIN STERLING/WINTERS Ireland’s biggest Pal Elizabeth Taylor BY CHEF ANDRE Ireland teamed with Talent management category. You can buy trained her taste. Now Her longtime friend Elizabeth Taylor’s firm that helped everything from Ireland designs baubles and cook helped write longtime landscape produce Ireland’s c e i l i n g f a n s t o from $95 pendants at recipes for Janet designer, Nicholas movies and exercise w i n d o w s t o f l o o r i n g Fred Meyer to a $14,000 Jackson’s bestseller Walker, to form Jardin, videos now manages designed by the for- gem necklace at Gearys True You. Next up: which sells outdoor- celebrities like Janet mer swimsuit model. Beverly Hills. NutriSystem menu items. inspired items. Jackson.

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