s FASHION NEWS: Bernard Activewear gets MEN’S: Hartmarx Arnault on even more high-tech, taps Emerisque China, and pages 6 and 7. as stalking horse Louis Vuitton’s bidder, page 3. new art exhibit in Hong EYE: Partying in s

Cannes with Dolce & Kong, page 5. s

Gabbana, page 4.

Women’s Wear Daily • The Retailers’ Daily Newspaper • May 26, 2009 • $3.00

WReady-to-Wear/TextileswDTUESDAY Fluid Dynamics For cruise, Yves Saint Laurent designer Stefano Pilati is drawing on the heritage of the legendary house founder in ready-to-wear, while the bold accessories echo the bohemian mix for which Loulou de la Falaise was known. Rich colors are worked in sensuous and voluptuous shapes, and silky knits and chiffon dresses fall in loose cascades. Here, a bleached silk and cashmere sweater with a silk and rayon shirt and skirt. For more, see page 8. A New Crop of CEOs: Wave of Changes Seen At Italy’s Fashion Firms By Luisa Zargani and Andrew Roberts MILAN — There are still more questions than answers swirling around Gianni Versace SpA. The company on Monday issued a statement following a board meeting in which it said the firm approved a new three-year plan prepared by Bain & Co. It said Versace operated in the black in the first quarter, but that revenues fell 13.4 percent, partially as a result of the bankruptcy of Ittierre SpA, which produces the Versus line. The company said April and May showed an improvement in business, however. As for the future of its chief executive, Giancarlo Di Risio — that is where the confusion came in. Versace said Di Risio was present at the board meeting, along with directors Donatella Versace; her brother, Santo; Leonardo del Vecchio; Paolo A. Colombo; See Change, Page 13 Photo by Franck Mura Franck Photo by 2 WWD, TUESDAY, MAY 26, 2009 WWD.COM Dolce and Gabbana Deny Tax Evasion By Andrew Roberts said thesis is proven. If this happened, [the de- signers] would be facing a blatant violation of WwDTUESReady-to-Wear/Textilesday MILAN — Domenico Dolce and Stefano Gabbana the principle of contributory capacity…as the could be personally liable for more than a bil- request would then be for taxation of unearned FASHION lion dollars in unpaid taxes income.” With slick silhouettes and a variety of wellness and fines, following an in- Dolce and Gabbana ex- s 6 features, fall activewear often features a second vestigation by Italian police, plained they had “only ac- skin that’s as useful as the first. although the two designers tually received 360 million deny any wrongdoing. euros,” or $447.8 million, GENERAL A spokeswoman for Italy’s from the transaction and had The fashion industry looks set for a summer of excise and revenue police declared and paid everything 1 musical chairs, at least at the chief executive confirmed Monday it had rec- that was owed to the fiscal au- officer level. ommended the country’s fiscal thorities. They said that if the agency charge the designers police’s calculations were cor- 3 Emerisque, the London private equity firm, was with tax evasion and abuse of rect, their brands would have named by bankrupt Hartmarx Corp. as the stalk- rights and fine them 800 mil- been worth 1.1 billion euros, ing horse to acquire most of its assets. lion euros, or $1.12 billion. She or $1.37 billion, in 2004. 3 Two months after exiting Earnest Sewn, Scott declined to give more details. “We wish!” the designers Morrison is back in the denim game as the new Dollar figures were con- scoffed. “We will tell the 3,800 global chief executive officer of Evisu. verted at average exchange employees of the companies, rates for the periods to which which compose the group, 5 Much to L’Oréal’s chagrin, the U.K. High Court they refer. that we have paid all that was ruled eBay isn’t responsible for trademark Dolce and Gabbana issued a due and that we will strenu- infringement by sellers using its site. vehement denial of the allega- ously defend ourselves to 9 RTW: New York City may be the base for the tions, which relate to the 2004 avoid being unjustly forced to United Nations, but it’s also become the home of sale of the Dolce & Gabbana pay for something that never the United Nations of fashion. and D&G brands to the design- existed in the first place.” ers’ Luxembourg-based hold- For the fiscal year ended 10 TEXTILES: Existing tools and resources to make ing company Gado Srl. Mar. 31, 2008, Dolce & cotton textile processing more environmentally “It’s a paradox! Gabbana Holding Srl sound are being underutilized. Since when does one reported a 61 percent Germany’s two largest department store groups decline in net profits have to pay taxes on 14 — Metro Group, parent of Galeria Kaufhof, and money one never actu- Since when does one have to 58.9 million euros, Karstadt owner Arcandor — look set to merge. ally collected?” the de- “ or $83.5 million, on signers said in a per- to pay taxes on money one revenues, which EYE sonal statement. “It’s gained 21 percent to Stefano Gabbana and Domenico Dolce gave a an absurd demand never actually collected? 1.27 billion euros, or 4 based on a completely — Stefano Gabbana and Domenico” ­ Dolce $1.8 billion. The drop lesson in party-throwing Friday night when the duo abstract calculation. in earnings includes hosted their annual “Fabulous in Cannes” soiree. This higher taxable a 76 million euro, or sum…is a virtual figure we have never received, $107.7 million, extraordinary payment at Gado. Classified Advertisements...... 15 the result of a theoretical accounting exercise.” The personal allegations follow a separate To e-mail reporters and editors at WWD, the address is According to Dolce and Gabbana, the police criminal probe into supposed tax irregularities [email protected], using the individual’s name. claims are based on “the mistaken interpreta- at the Dolce & Gabbana group, which WWD un- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 tion” of a regulation, which enables the tax au- derstands is ongoing. As reported last year, fis- FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. thorities to replace the sum actually paid with a cal authorities alleged in March the firm owed VOLUME 197, NO. 109. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with hypothetical market value. more than 125 million euros, or $175 million, in one additional issue in January, May, October, November and December, two additional issues in March, April, June and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division “This claim, far from offering an opinion of unpaid taxes and fines relating to Gado. The po- of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services the actual facts, describes only the interpreta- lice are understood to consider Gado essentially provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. tion of a guideline,” the statement read. “[The] a legal entity, allegedly used to avoid higher cor- Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. said allegation constitutes only an invitation to porate taxes in Italy. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian the [tax office] to examine the legal basis of that A spokesman for Dolce & Gabbana declined addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES thesis, and will translate in a payment request to comment on the matter. TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA for Mr. Dolce and Mr. Gabbana only in case [the] — With contributions from Alessandra Turra 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses 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 correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at 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 screened companies that offer products and services Ittierre’s License With C’N’C Renewed that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT By Andrew Roberts The C’N’C contract renewal is the latest in a RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, series of achievements since Ittierre’s adminis- UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR MILAN — Things just keep getting better for trators Andrea Ciccoli, Stanislao Chimenti and ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY Ittierre SpA. Roberto Spada took control of the company. WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE After securing the Just Cavalli license for The triumvirate secured a 30 million euro, or ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. another five years, Ittierre, which is in special $40.5 million at current exchange, line of credit administration, last week revealed the renewal at the end of February and in April convinced of the C’N’C Costume National license through Roberto Cavalli to extend the deal for his young- fall-winter 2019. The deal covers the exclusive er line through 2014. Last week, they named DAILY worldwide production and distribution of C’N’C turnaround specialist Massimo Suppancig as Miracle men don’t men’s and women’s apparel and accessories, managing director. “ Ittierre and C’N’C’s parent company E.C. SpA The administrators have until August to pres- QUote exist. Collaboration and said. Financial terms were not disclosed. ent a restructuring plan. Italy-based Ittierre em- Ittierre, which filed for the Italian equivalent ploys 772 people. teamwork are needed at all levels of Chapter 11 bankruptcy protection in February Parent company IT Holding SpA, which after running out of cash, also operates the also owns the Gianfranco Ferré, Malo and Extè of a business. Galliano, VJC Versace, and Versace Sport labels brands, followed its production and licensing sub- ” under license. sidiary into administration at the end of February. — Concetta Lanciaux of consultants Strategy Galliano, whose deal expires in 2011, is expected On Friday, IT Holding said chief financial officer Luxury Advisors, on management. Page one. to re-sign for another five years, according to sourc- Alessandro Finizio had exited the firm. A succes- es. The Versace agreements run through 2012. sor has yet to be named. coming this week Yves TUESDAY: The Conference THURSDAY: Couture, Las Vegas Saint TODAY ON Board releases the Consumer (through June 2). Laurent Confidence Index for May. • Delia’s Inc., J. Crew Group, Perry Resort • Additional images of the Ellis International, Sears Holdings 2010 new resort collections from WEDNESDAY: American Eagle Corp. and Wet Seal Inc. report Yves Saint Laurent and Missoni Outfitters Inc., Charming first-quarter sales and earnings. • More photos from the Dolce & Shoppes Inc., Chico’s FAS Inc. and Coldwater Creek Inc. FRIDAY: Tiffany & Co. reports Gabbana party in Cannes a report first-quarter sales first-quarter sales and earnings. r WWD u • Trend Report: and earnings.

M .com Glittering holiday looks • Polo Ralph Lauren Corp. SATURDAY: JCK Las Vegas anck reports fourth-quarter and (through June 2).

Fr • WWDBlogs on Michael Kinsley,

by year-end sales and earnings.

and the mood in denim • Zale Corp. reports third- SUNDAY: Pulse, London hoto

P • Global breaking news quarter sales and earnings. (through June 2). WWD, TUESDAY, MAY 26, 2009 3 WWD.COM Scott Morrison Joins Evisu Esmerisque Named Hartmarx Stalking Horse By David Lipke By Vicki M. Young The bankrupt firm is seeking approval of bidding pro- Two months after exiting Earnest cedures for the required court auction to allow for the Sewn, Scott Morrison is back in the denim game Emerisque Brands UK Ltd., the London-based possibility of better offers. Hartmarx hopes to get approv- as the newly appointed global chief executive of- private equity firm, was named by bankrupt Hartmarx al of Emerisque as stalking horse on June 1. The dead- ficer of Evisu. Corp. late last week as the stalking horse to acquire sub- line for new bids is June 25, with the auction scheduled In his new role, Morrison will oversee the stantially all the troubled firm’s assets in a deal valued at for June 30 at the Chicago offices of Skadden, Arps, Slate, denim and sportswear maker in all markets ex- $119 million. Meagher & Flom, Hartmarx’s bankruptcy counsel. If the cept Japan, where the brand was founded and is Hartmarx filed the papers in Chicago bankruptcy court deal doesn’t go through, Hartmarx would be responsible organized under a separate company. late Thursday, but they weren’t available until Friday. for paying Emerisque a $1.65 million break-up fee and re- “This is a completely unique and different chal- Emerisque said it expects to close on the transaction imbursing the London firm for $2 million in expenses. lenge for me, in that I’m taking on an established by early July, provided it is successful in its acquisition of Emerisque on Wednesday submitted what it termed its brand rather than launching something new,” said the apparel firm. It added of Hartmarx, “We will continue “third and final bid in a process which has been lengthy Morrison, who was a co-founder of Paper Denim & to enhance the legacy of its iconic brands Hart Schaffner and expensive for all parties” and attached a Thursday Cloth in 1999 and Earnest Sewn in 2004. Marx and Hickey Freeman and develop its emerging life- expiration date to its offer. At Evisu, Morrison faces the task of energizing style brands, such as Christopher Blue, Exclusively Misook Chicago-based Hartmarx filed for Chapter 11 bankrupt- a company that was one of the earliest innovators and Monarchy to their fullest potential.” cy protection Jan. 23 and, as one of the few remaining do- in the premium denim field when it launched in Joining with Emerisque to acquire Hartmarx is SKNL mestic producers of union-made tailored clothing, its fight 1991, but which has muddled its brand message North America BV, an Indian firm incorporated in The to survive has increasingly been taken up by union offi- over the years and failed to grow a business of Netherlands that has retail connections in India. SKNL’s role cials and lawmakers. The choice of Emerisque should, for any significant size in the U.S. in the joint bid is as a financial investor. The bid is for $85.5 now, alleviate concerns about the firm’s future as a going “I think the opportunity is to dial back to our million, or $70.5 million in cash and concern with domestic production. iconic heritage, when it was really about the a junior subordinated secured note The Emerisque bid retains the ap- denim,” said Morrison. “The product has become of not less than $15 million. A Hartmarx parel firm’s brands, most of its fac- too heavily branded and it’s sort of taken on a According to the purchase agree- style. tories and employees. life of its own as a streetwear-identified label. I’d ment signed by Hartmarx, Emerisque Wells Fargo/Wachovia, which fi- like to see it become a little more contemporary, and SKNL, the cash component is nanced the troubled clothier before worldly, and perhaps, European.” subject to adjustment downward. If and after its Chapter 11 filing, Evisu posted sales of about $30 million at the adjustment is to less than $60.5 reportedly has leaned to- wholesale outside of Japan, with less than million, then the junior secured note ward liquidation of the dis- $4 million of that in the U.S. There are is to be increased so the sum of the tressed firm. Recently, the 19 freestanding stores outside of Japan, adjusted cash and note equals $75.5 bank noted it’s continued with none in the U.S. Evisu signed a million. The transaction also in- to finance Hartmarx, even lease to open a SoHo flagship in 2006, cludes the assumption of $33.5 mil- though the clothing firm has WwD but those plans never materialized. lion in debt by the purchasers. been unable to pay the $114 With the appointment of Morrison, According to the agreement, million owed to the lenders Men’s Evisu is moving its headquarters to New the note is due in 2014, or a ma- led by Wells Fargo. York from Hong Kong, where its parent turity date of five years from the The bank is by no means obligat- company, Bestford Ltd., is based. Bestford and date of closing, and includes a ed to support the stalking horse bid- its chairman, Peter Caplowe, acquired the Evisu 3 percent pay-in-kind coupon. der. Some close to the sale process trademarks for all markets outside of Japan from Holders of the note have first believe Wells Fargo might object to Evisu founder Hidehiko Yamane in February lien on three factories and one the choice of Emerisque and contin- 2006. The transaction was funded by New York- distribution center, and a second ue to eye a liquidation of the firm. based hedge fund Indus Capital Partners, which lien on Hartmarx’s intellectual According to sources familiar owns a majority stake in Bestford. property. Payment of the note with the bidding process, the bank Yamane still owns and operates the Evisu is expected from the sale of the has placed a higher valuation for business within Japan, where it rings up about three factories and one distribu- certain assets than the bidders. $50 million at retail, primarily through a network tion center, with the sale process If those valuations are accurate, of 61 freestanding stores. to start within three months of there is a possibility liquidation Indus Capital Partners had been seeking a ceo closing. Repayment based on free would bring in greater value than for Evisu’s international business for the past cash flow is expected to be paid the $119 million bid on the table. year, in order to assume those responsibilities annually in years four and five. That supposedly is giving the bank from Caplowe and help ramp up growth. Andreas Emerisque issued a statement The Emerisque offer is impetus to push for a liquidation. Kurz, the former ceo of Diesel USA and Seven Friday saying it is looking forward “ However, those sources also said For All Mankind and who now runs his own con- to June 1 “when we hope that the the best and highest offer the way the bank arrived at its sulting firm, headed up the search and tapped bankruptcy court will approve our valuation numbers is based on out- Morrison for the job. nomination as stalking horse. We we have received.­ dated methods. They believe the “We are looking to Scott to clarify and simplify are very grateful for the support of — Homi Patel, Hartmarx” Corp. valuations fail to take into account the brand message globally and to improve the Hartmarx Corp. and the company’s the current economic environment product offer,” said Caplowe. “Evisu historically advisers. We look forward to working with Wachovia Capital and inflate certain projections, including the availability developed somewhat haphazardly and, prior to Finance Corp., as agent for the company’s lenders, toward of buyers in a market strung for cash. Indus, in an undercapitalized way.” realizing our bid,” the company said. The bank, a recipient of the government’s Troubled With the bulk of Evisu sales in Europe, the Homi Patel, chairman and chief executive officer of Assets Relief Program funds, has been the subject of in- design team is based in London, but Morrison is Hartmarx, called the agreement a “very important step tense political pressure, beginning with Rep. Phil Hare considering moving them to New York. He is aim- in resolving the future of Hartmarx as a continuing enter- (D., Ill.), who worked in a Hart Schaffner Marx factory ing to have a small capsule collection of Evisu’s prise. In this challenging economic environment, at the in the district he now represents, reaching up to include new direction on view at the Pitti Uomo and present time, the Emerisque offer is the best and highest House Financial Services Committee Chairman Barney Bread & Butter trade shows this summer, with offer we have received and sets a baseline for a transac- Frank (D., Mass.). the full overhaul of the collections ready for fall tion to be completed consistent with our [debtor-in-pos- A spokeswoman for Wells Fargo declined comment. 2010 retail. session] financing agreement. Another question that could still affect Hartmarx’s fate Morrison and his partner, Eleanor Ylvisaker, “However,” he continued, “we will need continuing lend- is who might come in and bid at the auction. Spencer Hays’ departed Earnest Sewn in March, following dis- er and other stakeholder support to meet the significant IAC is said to be interested in men’s brands Hart Schaffner agreements with an investment group that ac- challenges of closing this or any alternative transaction.” Marx and Hickey Freeman. So, too, is a Chicago-based in- quired a majority stake in the company last year. The support of Wachovia, now part of Wells Fargo vestor group led by designer Joseph Abboud. It is unclear Corp., has been a crucial stumbling block in efforts to re- whether New York-based Mistral Equity Partners or Los structure Hartmarx, and could prove problematic again Angeles-based Yucaipa Cos. would enter the fray again. as the various parties look to sew up a deal. — With contributions from Jean E. Palmieri Burberry Prorsum To Show in London LONDON — Burberry will show its spring 2010 Christophe Mélard Tapped as Sergio Rossi CEO Prorsum collection in London to mark the 25th anniversary of London Fashion Week and the By WWD Staff firm’s strategic and financial reorganization, while also British Fashion Council. Burberry will close LFW relaunching Roger & Gallet, a French heritage brand dat- on Tuesday, Sept. 22. MILAN — Christophe Mélard has been named president ing back to 1806. Burberry, which usually shows the collection and chief executive officer of the Sergio Rossi brand, Last year, Sergio Rossi entered the black, posted a in Milan, will also host an event at its new London WWD has learned. sharp jump in wholesale orders and hired a new creative headquarters following the show. “London is our Mélard, 43, is to start Tuesday at the Italian footwear director, Francesco Russo. However, the firm recently re- home — it’s the heart of this global luxury brand and accessories firm, a spokeswoman for Rossi parent trenched in the U.S. and closed five stores, impacting first- and the center of all our creativity,” said creative Gucci Group confirmed. quarter retail sales, as reported. director Christopher Bailey. Mélard, 43, succeeds Didier Bonnin, who left the com- Gucci Group acquired 70 percent of Sergio Rossi in “We are so excited to be showing during pany effective May 19. 1999 and eventually took full control in 2004. Gucci Group London Fashion Week and particularly to be part Previously, Mélard was chief financial officer at YSL has expanded the company and has introduced more com- of its historic 25th anniversary,” Bailey said. “We Beauté and managing director of the Roger & Gallet prehensive handbag collections. are incredibly proud of our Britishness and this beauty brand. Based in San Mauro Pascoli, Italy, Sergio Rossi is really a wonderful opportunity to celebrate During his four years at YSL Beauté, which L’Oréal also produces shoes for other brands under the Gucci that in our home city.” acquired from Gucci Group last year, Mélard oversaw the Group umbrella. — Samantha Conti 4 WWD, TUESDAY, MAY 26, 2009 WWD.COM

The scene at Baoli club. Emina Cunmulaj

Pixie Geldof

in D&G. t

The Baoli club palm trees. In the Shade “CANNES IS LIKE THE OPENING SEASON; when there is Cannes, then summer begins,” declared Stefano Gabbana who with Domenico Dolce gave a lesson in party-throwing Friday night when the duo hosted their much-antici- pated annual “Fabulous in Cannes” soiree. As they arrived at the palm tree dotted Baoli club, dark shades were handed out to guests, including Eva Herzigova, Claudia Schiffer, and a pack of London It kids, led by Peaches and Pixie Geldof. “All the movie stars wore sunglasses in the Fifties,” continued Gabbana coolly as he sipped a vodka and Kylie Cecile tonic before being swept onto the mirrored Minogue Cassel in dance floor by admirers. “And at the end in Dolce & Dolce & of the night when you’re drunk, it’s always Gabbana. Gabbana. Paz de la better to have a pair.” Huerta in Making a fashionably late entrance, Kylie Dolce & Minogue, who had just performed at the VIP Gabbana. Club, entered the party in a hot pink Dolce & Gabbana bustier dress. “I am so glad to be here finally!” said the singer. Meanwhile, the raucous crowd swapped party tips. “[Just] don’t be the host,” said actress Paz de la Huerta, whose movie “Enter the Void” pre- miered earlier that day and who can also be seen in Jim Jarmusch’s “The Limits of Control.” Alice Dellal said she’s more a partygoer than thrower. “If I did throw one it would involve a wicked DJ with lots of metal rock, a pick ‘n’ mix sweet corner, popcorn, strobe lights and a photo booth,” said the part-time model, decked out in jewelry by Dominic Jones, for whom she acts as cre- ative director. Model Portia Freeman, one of a handful of Stefano Gabbana with guests outfitted in Dolce & Gabbana frocks Eva Herzigova and custom-made for the event, had her own Claudia Schiffer in Portia FreemanFreeman inin ideas. “You need great music, to let people Dolce & Gabbana, and Dolce && Gabbana.Gabbana. smoke so they don’t disappear and a mirrored Domenico Dolce. dance floor,” she said. Check, check, done.

Robert Pattinson in e r Dolce & Gabbana, EYE SCOOP Peaches Geldof e Feuge

and Emile Hirsch in Changing frocks is a good way of getting attention, not to mention an h p

Georgio Armani. doubling one’s photo opportunities, as Sharon Stone proved Thursday e St

night. The age-defying actress wowed guests when she exchanged y her long Dior gown for a body-conscious, supermini Pucci number for b

amfAR’s after-dinner party. “Make sure you get my good side,” she party joshed, winking at the paparazzi as she emerged from the Hotel du ANA

Cap’s central glass elevator. BB A G Already inside the event, which was held at the hotel’s Eden Roc & site, were Carine Roitfeld, Emile Hirsch, Elsa Pataky, Josh Hartnett and E LC Alison Lohman. O

Meanwhile, “Twilight” vampire Robert Pattinson admitted he’s ge; D

been mostly sticking to daylight hours during the festival. “Every ma ei party I go to, I get mobbed by the paparazzi,” lamented the Brit-born r /wi

actor. He’s signed on for the fourth movie in the “Twilight” franchise pa and said Los Angeles living is having an impact. “I’m losing my ves

accent,” he drawled. ff je The guest list also included billionaire members of Luxury Limited y b Edition by Cynthia Sarkis, who cohosted the soirée with Vogue. Sarkis s tO

took the opportunity to officially launch her ultraprivate luxury Internet ho Georgina Chapman in p platform, which sells big-ticket items like Van Gogh paintings and her own design with yachts to its clientele. “It gathers the world’s great fortunes who Sharon Stone have high spending power and have also succeeded professionally,” in Emilio Pucci.

explained Sarkis, whose goal is to attract 250 members. PARTY AMFAR WWD, TUESDAY, MAY 26, 2009 5 WWD.COM Arnault Bullish on LVMH, China FASHION SCOOPS By Constance Haisma-Kwok much sightseeing this time around, HONG KONG — “China will be the number-one economic power in he mentioned he’s the world within 30 years, and Louis Vuitton is the number-one lux- a fan of the quaint ury brand in the world, so there is a lot of potential in the region,” shops and cafes in said Bernard Arnault, chairman and chief executive of LVMH Moët the hilly Daikanyama Hennessy Louis Vuitton. neighborhood. Arnault was explaining the reason Louis Vuitton was participat- ing in the city’s annual Le French May arts festival. He said the SIMPLY SURREAL: decision was “both simple and logical” given Hong Kong’s position Bottino was once as the gateway for an ever-more powerful region. To illustrate the a happening art point, Vuitton will open its 28th store in Mainland China this week, hangout and on in Wuxi. Thursday night, it Arnault and other members of tout Paris arrived here last week became that again. for the opening of “Louis Vuitton: A Passion for Creation,” an ex- The restaurant was hibition at the Hong Kong Museum of Art. The show, which fea- Alexander taken over for a post- tures contemporary artworks from the permanent collection of the Wang and opening dinner to Fondation Louis Vuitton pour la Création as well as works by art- one of his celebrate handbag ists who have collaborated with designer Marc Jacobs, is the first looks. designer Diane De and only exhibit of its kind in the world. Maria and the John “We were traveling in China for a few days and you can still see TAKE FIVE: Talk about a lengthy rehearsal. During a Connelly Presents gallery show of her late grandfather a lot of dynamism and optimism and I was in the U.S. last week and press conference Sunday for the Cannes Film Festival’s Pierre De Maria’s surrealist paintings and lithographs. it’s a completely different picture,” said Arnault. “It’s why we’re closing film, “Coco Chanel & Igor Stravinsky,” Anna The blonde Parisian trained as an artist herself happy to be here today. There is enthusiasm.” Mouglalis — who plays Coco Chanel — said she’d been before having the idea to launch a bag collection While Arnault said he preferred discussing art to talking busi- in preparation for the role since entering the fashion incorporating her grandfather’s work, which is in the ness during his visit to Hong Kong, he acknowledged the two were house as a muse eight years ago. “I got to spend so Guggenheim Museum collection, among other places. connected. “Business is paying for art, so we have to compromise,” much time in [Chanel’s] apartment, I took siestas there “I’m always working on creating something,” said De he said, going on to note, “Louis Vuitton especially is doing well. — filled her ashtray,” quipped the actress, who later Maria, who jetted back to Europe on Sunday. “I wanted We are growing. It’s not the same everywhere, but in Asia and took to the red carpet in a custom-made Chanel dress to do something that crossed the line between art and China in particular demand for the products is still growing.” by Karl Lagerfeld. He had whipped up an emerald satin fashion.” The Italian-made bags showcase the elder De While stores around the world struggle with inventory and bustier dress à la Ava Gardner, whom Mouglalis Maria’s lithographs and also feature full-color motifs markdowns, Arnault insists on taking a long-term view of the finan- resembles, according to Lagerfeld. Among from his paintings. The collection will launch in the cial crisis. “You the festival’s award-winners, meanwhile, U.S. officially in September. know, through the Charlotte Gainsbourg was named best In the meantime, the very arty crowd, including Bernard different crises I actress for her daring performance in A handbag the show’s curator, Melissa Bent, as well as Arnault went through in Lars von Trier’s extremely graphic movie from Diane painter Rita Ackermann, gallerist Amy Greenspon, the last 20 years, “Antichrist.” De Maria’s photographer Max Farago and designers Kai what I have seen collection. Kuhne and Elise Øverland took over Bottino’s back is that each time WANG’S TOKYO TIME: Alexander room for a four-course feast and even a we gain market Wang finally got a chance to little bit of bad behavior — in the form of share. It’s not kick back and enjoy Tokyo on cigarettes snuck at the table. easy. Some have Thursday night, attending a been quite dif- party thrown in his honor by AMY’S NEW CLOTHES: Amy ficult and this Aoyama boutique Adelaide. Winehouse’s lifestyle choices might might be the “It’s been a very exciting, be a little questionable, but it strongest, but fulfilling trip,” he said seems the singer remains in the when the crisis after mingling with model good graces of the fashion industry is over, we will Ai Tominaga and a host of at least. Confirming British press be strong and we local fashion editors. “I reports, sources said Winehouse will have gained worked and I slept. Tonight is the is working on a fashion line with Gareth Jones market share,” first night I’ve gone out.” Wang said he spent London label PPQ, designed by Amy by said Arnault. much of his Tokyo sojourn with people from Shiseido. Molyneaux and Percy Parker. The line Expanding on Wang and the Japanese beauty giant codeveloped 12 with Winehouse will launch later this year. And though Photos the subject, he items for the Maquillage makeup line including lip Winehouse — who’s recently been snapped cavorting noted LVMH is gloss, lipstick and eye shadow. It will be launched in around the Caribbean — may seem a controversial one of the few companies listed on the CAC 40 still hiring employ- Japan and select Asian countries come July. This was choice for a fashion plate, PPQ is no stranger to ees and growing. “It’s possible to grow, to hire, to build instead of the designer’s fourth trip to Japan, his largest market London’s hard-partying set: Last year, the design duo going to the government for help,” he said. outside the U.S. Although he didn’t have time for launched a line with outspoken “It” girl Peaches Geldof. Yves Carcelle, chairman and chief executive officer of Louis Vuitton, acknowledged other retailers might be wondering about the secrets to the brand’s success. “There is a recession, but it doesn’t hurt everyone in the same way. So people are questioning, BEAUTY BEAT ‘Why is Vuitton growing in double digits when the rest of the world is struggling?’” The answer, Carcelle said, lies in the quality of the product, the service at the stores and complete control of distribu- U.K. High Court Rules in Favor of eBay tion. “We have no franchises. No one else distributes Vuitton, so we maintain the quality. We never discount, never have a sale. These LONDON — L’Oréal’s bid to clamp down on trade- to prevent trademark infringement,” L’Oréal things are image-killing, brand-killing,” said Carcelle. mark infringement and the sale of counterfeit stated. “The U.K. High Court of Justice con- The economic climate is also providing real estate opportuni- products on eBay was dealt another blow Friday sidered that the relevant European trade- ties, as landlords are showing flexibility. Still, Carcelle said, the when the U.K. High Court ruled the online auc- mark law and the eCommerce Directive were company is not persuaded by bargains. “It’s not because you find a tioneer is not jointly liable for trademark in- unclear and referred nearly all the issues good deal that you find a good second location. In luxury, you have fringements committed by sellers using its site. to the European Court of Justice for further to find the best place, but it is a good moment to negotiate,” said The case is one of a series of proceedings guidance. Carcelle. initiated in 2007 by L’Oréal against eBay in sev- “Since L’Oréal has maintained that eBay can- Carcelle added he never relies on formulae for conducting busi- eral countries. not benefit from the regime of liability for host- ness, especially when it comes to collaborating with artists. “I don’t “This is an important judgment because it en- ing providers under the eCommerce Directive, believe in recipes. I don’t think that because one thing is success- sures that consumers can continue to buy genu- it is satisfied to note that the U.K. court pre- ful, all of its kind will be successful. And when you work with art- ine products at competitive prices on eBay,” ferred its view before referring the matter to the ists, you get surprises,” he said. stated Richard Ambrose, head of Trust and [European Court of Justice].” Jacobs, who attended the exhibition’s opening alongside artist- Safety at eBay. “As such, it is a victory for con- On May 13, the Paris High Court ruled eBay collaborators Takashi Murakami and Richard Prince, said the com- sumers and the thousands of entrepreneurs who is not accountable for the sale of counterfeit pany has always been open to such projects, even if they underes- sell legitimate goods on eBay every day. When L’Oréal products on its French Web site. The timated their commercial potential at the beginning. “I think the companies try to prevent genuine items being court found eBay had implemented means to first one was Stephen Sprouse….They were receptive, but I don’t sold through the Internet, they demonstrate that fight the sale of counterfeit products on its on- think they were so serious about manufacturing the products until they are out of step with consumers, how they line platform, thereby fulfilling its obligation of they saw the reaction of the press,” said Jacobs, who recalled coun- use the Internet to shop and, at this time when fair dealing. A court in Belgium also found in terfeit versions of the Graffiti bags reached the streets before the every penny counts, the importance of shopping favor of eBay in a similar case in 2008. L’Oréal company had manufactured any of the genuine pieces. around to get the best price.” has since appealed the Belgian court’s decision Jacobs also dismissed criticism that such collaborations demean In his ruling, the U.K. judge referred a num- and the case will be heard before the Court of either the artist or fashion. “I think that’s really stupid. It’s such an ber of issues to the European Court of Justice Appeals in Brussels in 2010. easy criticism to say this is not what art should be or this is not for guidance and listed 10 measures eBay could L’Oréal is not alone in taking eBay to task re- what fashion should be. That’s putting people in a box and it seems take to counteract the sale of counterfeit goods. garding the sale of counterfeit goods. In 2008, old-fashioned and archaic to me,” he said. Those suggestions include filtering listings be- the Internet giant was ordered by French courts Arnault, too, believes critics of the ties between art and com- fore they’re posted on eBay and stepping up the to pay compensation to LVMH Moët Hennessy merce should reconsider their way of thinking. “No enterprises detection of listings for unboxed products, tes- Louis Vuitton and Hermès International, where- can be successful if they are not profitable. We use designers and ters and not-for-sale items. as a U.S. court found in its favor in a case involv- artists for success in what we do, so this [exhibit] is a way of giving “The court agreed with the view held from ing Tiffany & Co. the same year. back,” he said. the outset by L’Oréal, that eBay could do more — Brid Costello 6 WWD, TUESDAY, MAY 26, 2009 passons kayla assistant: fashion inc; price susan for mizu by makeup facto; de for nelson by hair

models; Clockwise from left: Fila’s polyester and Lycra spandex tank with Nike’s polyester and spandex compression shorts.

york Donna Karan sunglasses; Timo Weiland scarf; Diesel Black Gold shoes. Nylon and spandex heart-sensor sportsbra from NuMetrex with nylon and spandex leggings from Adidas by Stella McCartney, under nylon and spandex leggings from Splits59. Calvin Klein sunglasses; flats from Rudolf Dassler Schuhfabrik by Puma. kang/new Nylon and spandex tank from Calvin Klein Performance with New Balance’s polyester and spandex tights. kiki Nylon and Lycra tank from K-Swiss with nylon and Lycra leggings from Asics. model: WWD, TUESDAY, MAY 26, 2009 7 WWD.COM Activewear is always focused on the figure. But for fall, with slick silhouettes and wellness features like built-in heart monitors and compression panels, these clothes set out to be a second skin as useful as the first. — Court Williams

photoS by george chinsee 8 WWD, TUESDAY, MAY 26, 2009 WWD.COM

Yves Saint Laurent Missoni

Yves Saint Laurent

Missoni

The Boho Express Cruise has begun, and European designers are ahead of the game with plenty of bohemian flair. Stefano Pilati reflected the heritage of Yves Saint Laurent: A ballooning bolero was inspired by a couture piece, and strong jewelry was in keeping with house tradition. Rich

Mura colors and eye-teasing prints, all taken from seashell motifs and k evoking animal spots, were worked in sensuous, voluptuous shapes. Meanwhile, at Missoni, Angela Missoni mixed the house’s signature zigzag motif with blurry, sepia-toned prints for a relaxed collection tudio and Franc S of easy and comfortable pieces, all layered up. Khepri by photos Ready-to-Wear Report

WWD, TUESDAY, MAY 26, 2009 9 WWD.COM Ready-to-Wear Report

Tracy Thakoon Reese Jason Doo-Ri Panichgul Wu Isabel Chung Toledo Derek Narciso Lam Rodriguez SA: A Microcosm of the World By Marc Karimzadeh and Whitney Beckett seeing anybody but Asian people. Here, on one block, you pretty much see half the world, so it’s only natural.” NEW YORK CITY MAY BE THE BASE FOR THE UNITED NATIONS, BUT IT’S ALSO Doo-Ri Chung was born in Korea, but grew up in New Jersey where her family had become the home of the United Nations of fashion. a dry-cleaning business. Unlike any other fashion capital, Seventh Avenue has undergone a remarkable “I always knew I was going to be in New York, because I grew up in New Jersey transformation in the past decade. Where once the industry was the domain of Italian- and on weekends with friends I would come to New York as a high school student and Americans and Jewish immigrants in pursuit of the American dream, it is now a melt- would take FIT classes. At Parsons, it almost felt like the white, Anglo-Saxon students ing pot refl ective of the changing demographics of the city itself. were in the minority. A growing number of newly arrived or fi rst-generation Asian-American and “When I went to Parsons, it was so diverse,” she recalled. “Now when I look at Hispanic designers are making their mark on the runway. The fashion week sched- students who apply for internships, everyone is just an ethnic background. We had ule reads more like a roll call for the U.N. General Assembly — with designers who a Jamaican gentleman apply for an internship, a Hispanic person and an Asian per- were either born here, or moved here from locales including China, Korea, Thailand, son....It’s a familiar ground for me; I fi nd it very comforting. For me it’s the norm. It’s Taiwan, Nepal, Cuba and Iran. They are also increasingly a presence in design rooms how I see New York.” and corporate and retail positions. Sonia Yoon, who designs the Bensoni label with Benjamin Channing Clyburn, was “Historically, it does appear the fashion design industry in New York City used born in Korea, and grew up in London and New Jersey. She studied at Parsons and de- to be more Jewish and WASP, whereas now there’s an increasing number of Asian- cided to stay here. “From my personal life experience, New York is a place where I feel American, Hispanic-American and African-American designers,” said Valerie Steele, comfortable in my own skin,” Yoon said. “The city itself is an amalgamation of all these director and chief curator of The Museum at the Fashion Institute of Technology. “We different cultures. They are very accepted here. As an Asian-American, I don’t feel that know they have always been there, but they may not have been so prominent in the I am from another country and that’s what makes a difference. It’s a great launching pad past — they may have been more backstage before. There’s more of a premium on for a designer of any culture, which is more and more evident than in other cities.” creativity in the industry than in the past, when we’d largely copy France.” She said most of her friends at Parsons and in New York have a similar story. “I Eugenia Paulicelli, professor of Italian, comparative literature and women’s stud- have a lot of friends who are children of immigrants,” Yoon said. “They are second ies at Queens College and the Graduate Center of the City University of New York, generation, they speak English and are well-educated. Their parents came to this where she is also co-director of the Graduate Center Fashion Studies Concentration, country for their education and better life.” coedited “The Fabric of Cultures: Fashion, Tim Gunn, Liz Claiborne Inc. chief creative offi cer, “Project Identity and Globalization” (Routledge, 2008) Runway” co-host and former chair of the department of fashion and has hosted exhibits and conferences on design at Parsons, noticed an increasing number of interna- the subject of how fashion and society inter- tional students during his 25 years at Parsons. “The New York act. She said the new diversity of fashion de- fashion design community is a melting pot,” Gunn said. “The signers refl ects how cities develop all over next great American designer could be anyone.” the world through migration shifts and dif- Gunn, however, admitted he was struck that there weren’t ferent communities forming and interacting more African-Americans in with each other. high fashion — a notion many “In the beginning, the garment industry in others, including designer New York was owned by Italian-Americans Reese, also raised. Reese ex- and Jewish immigrants,” Paulicelli said. plained that during her time “In the last decade in New York, we had a at Parsons, she studied with shift in that we have a lot of Asian-American many overseas students, in- designers and designers from all over the cluding Asians, whose families place, who were either born here or came to had a long history in manufac- school here.” turing, and who were looking

The industry, led by the Council of STEVE EICHNER OTHERS BY to make their own names as Fashion Designers of America, welcomes the designers. “It was a perfect diversity, and judging by the roster of CFDA/ kind of situation to get started Vogue Fashion Fund fi nalists over the past for them,” she said.

fi ve years, supports it. SARDELLA; ALL While several high-pro- “I think this infl ux of mixed national- file African-Americans have

ity in American fashion is what is making DONATO launched successful clothing it very unique and interesting,” said CFDA businesses, they have either

president Diane von Furstenberg, herself LAM BY targeted a more urban cli- a Belgium native who moved to New York entele, or started their lines in 1969 with a prince for a husband and a Michelle ObamaObama wearingwearing ThakoonThakoon after establishing their names dream of a career. “America has always been with PresidentPresident Obama.Obama. in the entertainment field, the land of opportunity.” particularly in music. CFDA executive director Steven Kolb African-Americans also concurred. “New York is built on the im- seem to have a lesser presence at the corporate level. A recent migrant experience, and people are drawn study by the Black Retail Action Group surveyed a sample of to New York because of the talent and the retail and retail-related organizations with total revenues of access the city brings designers,” Kolb said. $2 billion to $10 billion. The study identifi ed 480 executives, of “You have great schools in New York, and a whom only 13, or about 2.7 percent, are African-American, with Seventh Avenue has become lot of kids that come to design schools here Seventh Avenue has become none at the senior vice president, executive vice president or a melting pot of nationalities. stay and work. That’s really the fabric of the a melting pot of nationalities. divisional merchandise level identifi ed. industry.” MARK WILSON/GETTYOBAMA PHOTOIMAGES; BY Kirk Palmer of search fi rm Kirk Palmer & Associates said New York’s fashion schools, and their varied student body, are largely believed to the company is often challenged to think in diverse ways when looking for candidates. have had an impact on the industry’s altering makeup. At Parsons The New School “Almost all companies have good intentions in wanting to hire a diverse executive for Design, for instance, the student population in the Bachelor of Fine Arts and workforce, but I’m not sure as an industry we ever reached out to those diverse ethnic Associate in Applied Science fashion design programs is about 30 percent interna- communities effectively to convince those communities of the opportunities in retail,” tional, and of the U.S. citizens, 50 percent are minorities. Over the past 10 years, the Palmer said. “In the pipeline at the front end of building talent, companies always strug- student minority growth has been nearly 200 percent in the B.F.A. program, and 165 gled in trying to get a diverse base in. If you can’t populate at the bottom management percent in the A.A.S. program, mostly from the addition of more Asian-American stu- level, you don’t have the people to nurture. It’s actually pitiful when you think about it. dents, according to the school. “Historically over the last several decades, you’ve seen the glass ceiling get “In the fashion industry, some groups are certainly more represented than others, cracked with more females, but you don’t see many people of different ethnic back- but we pride ourselves on the diversity of our alumni: Tracy Reese, Jason Wu, Isabel grounds,” Palmer added. Toledo, Thakoon [Panichgul], Narciso Rodriguez, Patrick Robinson and on and on,” FIT president Joyce Brown conceded the diversity in its faculty or staff is not re- said Simon Collins, Parsons’ dean of fashion. fl ected in the same rate as in students. “We make a concerted effort, but most of our fac- Many designers agreed they were attracted to the school’s and the city’s openness ulty are coming out of industry, and I can’t say that the industry has kept up to the same toward foreigners. degree of being a diverse critical mass of people,” Brown said. “We would be remiss to Noticing a creative streak at an early age, Wu’s mother decided to take her son not recognize there have been barriers to people having entrees to certain fi elds. While and leave Taiwan for Canada, where creativity was celebrated. He eventually ended some of those barriers might have changed in the last few years, they haven’t been up at Parsons, and decided to stay in New York. “You can’t turn around in New York down long enough to get long-standing experiences to bring to the table to compete as without seeing someone of a different race,” Wu said. “In Taiwan, we are not used to industry leaders or the best teachers. With time, that will probably change.” 10 WWD, tuesday, may 26, 2009 WWD.COM Textile & Trade Report Cotton Groups Make Case for Lowering Processing Impact By Constance Haisma-Kwok Huntsman on a new enzyme-based bleaching technique introduced two months ago. Lode Vermeersch, global head of Huntsman’s textile effects division, said the com- HONG KONG — Existing tools and resources to make cotton textile processing more pany’s Gentle Power Bleach technique reduces the temperature needed for boiling environmentally friendly and sustainable are being underutilized, according to in- to 65 degrees Celsius from 100 degrees Celsius, as well as reducing the pH level to dustry experts. neutral from an average of 11 to 12. Cotton Incorporated and Cotton Council International’s conference on sustainable “The whole benefit reduces chemical use and water use and at the same time im- cotton textile processing ran May 19 and 20 here and attracted more than 200 manu- proves performance,” said Vermeersch. “More of the natural benefits of the fiber are facturers from 19 countries to exchange ideas on how to better incorporate environ- retained. Traditional methods strip the fiber and so many of the qualities have to be mental practices into their businesses. put back in.” “To sustain our industry we must sustain our environment,” said J. Berrye Pat Nie Woo, chairman of the Hong Kong-based Sustainability Fashion Business Worsham, president and chief executive officer of Cotton Inc., prior to the event. Consortium, said economic considerations have to be put into perspective. “Doing so requires using less to make more.” “The global economy has had its effect on textile manu- The conference was spurred by the conclusion of a two- facturing across Asia,” said Woo. “However, this does not year study by the importer support program of the Cotton mean that environmental concerns have been forgotten. In Board and Cotton Inc. that set out to determine what To sustain our industry many ways, economic and environmental concerns are now technologies needed to be developed to reduce the envi- “ intertwined.” ronmental footprint of cotton processing. Mark Messura, we must sustain our Woo also noted many solutions already exist in the market. executive vice president of global supply chain for Cotton “The technology is out there, it’s available,” Woo said. Inc., said the research determined many of the technolo- environment.­ “The problem is the hurdles in implementing them. But gies already exist. — J. Berrye” Worsham, Cotton Inc. we can’t wait anymore. Most [hurdles] are money-related. “We do not have to wait,” he said. “Cotton is the lead- There is an obsession with getting the cheaper goods, but ing natural fiber in the world. The supply chain — from that’s not what’s best for everybody else.” chemicals and yarns to retailers and brands — all have a responsibility to address Cotton Inc. has also launched two sustainability themed Web sites to highlight the responsible textile manufacturing and processing.” environmental progress the cotton industry is making. Cotton Today, at cottontoday.cot- The conference featured 28 speakers from Europe, Asia and the U.S., sharing toninc.com, will present how the cotton industry is using technology and other innova- ideas on everything from water reduction and recycling, to ozone bleaching, recy- tions to make cotton production and manufacturing more environmentally friendly. cling of dryer exhaust and energy efficiency. Tony Webber, sales director at U.S.-based The second Web site will be “Cotton. From Blue to Green” at cottonfromblue- Adaptive Control, was in Hong Kong to demonstrate how companies can retrofit ma- togreen.org, and will serve as the platform for Cotton Inc.’s annual denim drive. Each chinery to reduce environmental impact. year, the Blue to Green program collects used denim, which is then converted into a “There was a big influx of equipment [to Asia’s manufacturers] 12 to 15 years ago,” natural home-insulation product. The insulation is donated to communities in the Webber said. “It works, but it’s dying. There is a lot that can be done to retrofit exist- Gulf Coast region of the U.S. The Web site will feature a counter of the number of ing machines, which costs a lot less than buying new ones.” jeans collected and how many homes have been built using the insulation. It will also Dutch biotech company Genecor collaborated with Swiss textile dyeing firm explain the process behind turning used jeans into insulation.

The Cotton Today Web site. h Jones t are G

o by t Mark Messura, Pat Nie Woo and J. Berrye Worsham at the Cotton Inc. press conference. Pho Report: Labor Rights Lag in CAFTA Region By Liza Casabona The Fiber Price Sheet WASHINGTON — In the four years since the enactment of the Central American Free The last Tuesday of every month, WWD publishes the current, month-ago and Trade Agreement, labor rights and worker protections in the region have not signifi- year-ago fiber prices. Prices listed reflect the cost of one pound of fiber or, in the cantly improved, according to a report released Thursday. The Washington Office on Latin America, a non-governmental organization, studied case of crude oil, one barrel. U.S.-funded programs in the region for three years and concluded that despite some advances, overall efforts have been insufficient to resolve the CAFTA countries’ his- Fiber Price on Price on Price on torical labor issues. 5/22/09* 4/27/09 5/23/08 Persistent problems include: forced overtime, illegal dismissal of workers, black- listing, gender discrimination, illegal closures of factories and impediments to form- Cotton 52.75 cents 40.20 cents 61 cents ing unions. When the U.S. negotiated CAFTA, the governments of the other signatory coun- tries — Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Wool $2.82 $2.49 $3.77 Nicaragua — reached a consensus about how to improve labor rights in their nations. That was followed by a U.S. commitment to provide about $20 million of funding. Polyester staple 79 cents 79 cents 88 cents Those funds were pledged to a number of projects in the region working with local governments and companies. Polyester filament 68 cents 68 cents 81 cents The money was coordinated through the State Department’s democra- cy, human rights and labor bureau, the Labor Department’s International April Synthetic PPI 115.9 108.7 114.1 Labor Affairs Bureau and the U.S. Agency for International Development. Spokeswomen for the State Department and the Labor Department said officials Crude Oil $61.05 $51.55 $130.81 had not reviewed the study and declined to comment. U.S. AID did not comment by press time. * The wool price is based on the average price for the week ended May 22 of 11 different thicknesses of fiber, ranging from The Washington Office on Latin America’s recommendations to improve workers’ 18 microns to 30 microns, according to The Woolmark Co. Information on Cotton and polyester pricing is provided by the conditions included continued support of programs that are working, direct funding consulting firm DeWitt & Co. The synthetic-fiber producer index, or PPI, is compiled by the Bureau of Labor Statistics and reflects the overall change in all synthetic-fiber prices. It is not a price in dollars but a measurement of how prices have to labor unions and strengthening labor provisions in the agreement. changed since 1982, which had a PPI of 100. Oil prices reflect last week’s closing price on the New York Mercantile Exchange Labor rights and protections have historically been sticking points in the nego- of future contracts for light, sweet crude oil to be delivered next month. tiation of free trade agreements, including the existing North American Free Trade Agreement and pending trade accords with Colombia and Panama. SECTION II

CLAIM YOUR SPOT ON FASHION’S MOST IMPORTANT CALENDAR

WWDDomestic Trade Show Calendar

IN PRINT & ONLINE Section II Issue date: June 24 Close: June 8

market forecasts

category previews

venue updates

For more information on advertising, contact Christine Guilfoyle, publisher, at 212-630-4737, or your WWD sales representative. 12 WWD, TUESDAY, MAY 26, 2009 WWD.COM Winser Leaves Aquascutum MEMO PAD KINSLEY’S REVENGE: Michael Kinsley is no fan of the Newsweek redesign, but By Samantha Conti on a report in the Sunday Times of London he has even less love for Time, where his column ran for the past two years. that Renown is in talks to sell Aquascutum to Reviewing Newsweek’s new look on The New Republic’s Web site Thursday, LONDON — A question mark hangs over the the brand’s Chinese licensee, YGM Trading. Kinsley described himself as having been “recently dumped by Time.” He deemed future direction of Aquascutum after chief “As for negotiation about selling the brand, Newsweek editor Jon Meacham “a very smart and thoughtful guy, which in my executive Kim Winser resigned suddenly. we are continuously working on this,” she said. experience is not necessarily true of all newsmagazine editors (all two, that is).” Winser stepped down after her bid to buy “There is no comment about which company And although he found the new Newsweek lacking in clarity or originality, he urged the outerwear, ready-to-wear and accesso- we are talking with or which stage we are on.” readers to pick it up and judge for themselves, adding, “Don’t forget to cancel ries brand was rebuffed by Aquascutum’s Renown bought Aquascutum because of its your subscription to Time while you’re at it.” Japanese parent Renown Inc. Her departure strength in the Japanese market, and over the A spokeswoman for Time would only say Kinsley’s contract ended in late was first reported Friday on WWD.com. next decade went through a series of on-again, January and was not renewed. According to industry sources, Winser off-again attempts to reenergize the brand, hir- Lisa Takeuchi Cullen, a former Time staff writer, wrote on her blog, TrueSlant. broke the news to the 400 staff members ing new management, remodeling the Regent com, that while rank-and-file staffers resented big names like Kinsley hogging during an emotional meeting at the brand’s Street flagship and tapping new designers. the prominent real estate, “You read his stuff and think, all right, all right — so Regent Street headquarters, However, Aquascutum’s maybe he deserves that six-figure contract. I’m surprised Time booted him.” and made her final exit later growth remained focused on Reached for comment by e-mail on Friday, Kinsley said the magazine’s refusal that day. A source close to the Far East, and the attempts to renew his contract “may be no more than wanting to save some money, since Winser said she had no imme- to revitalize the company were they were paying me a lot. But they never suggested a voluntary pay cut. I’m not diate work plans and would be ill-fated until it brought Winser really angry — just having a good time.” So why the harsh words for managing taking a vacation. on board in 2006. She had previ- editor Richard Stengel? “He fired me! Do I need a better reason?” — Irin Carmon A financial source said Winser, ously transformed Pringle from a who joined Aquascutum in 2006 producer of dowdy golf and knit KURT’S QUICK TURN: Speaking of Time, someone with significantly better luck and who had been working on a wear into a luxury company. there than Michael Kinsley is Kurt Andersen, whose late March cover story in the management buyout for the past For the fiscal year ended Feb. magazine, “The End of Excess: Is This Crisis Good for America?” has already 18 months, had two solid inves- 28, Renown reported net losses been turned into a book, to be published by Random House. The book, “Reset: tors behind her, and had expect- of 12.3 billion yen, or $121.9 mil- How This Crisis Can Restore Our Values and Renew America,” is now available for ed Renown to accept the deal. lion. Renown’s shareholders preorder, with a July release date. Tom Brokaw is contributing a foreword. Although Winser never pub- plan to meet this Thursday to ap- Let it not be said the publishing industry is not nimble: Andersen told WWD licly discussed her plans for a prove the appointment of a new late last week he was approached after the story appeared with the suggestion management buyout, sources Kim Winser president, Minoru Kitabatakem, of expanding on it, and that he had put the finishing touches on the manuscript said she was eager to continue who is expected to spearhead “10 minutes ago.” He said the book would be slightly more forward-looking and building and refining the iconic the firm’s restructuring plan. hopeful than the story, which compared Americans to “substance abusers coming British brand, which was founded in 1851 and Winser, who declined to comment Friday, off a long bender, hitting bottom (we can only hope) and taking the messes we’ve has been through a series of ups and downs joined Aquascutum with the aim of transform- made as a sobering wake-up call.” since it was acquired by Renown in 1990. ing it from a fusty maker of trenchcoats and Random House describes “Reset” as “a small book with hopes as big as the The Japanese company, which has been outerwear into a luxury brand, and restoring country it explains, scolds and celebrates” that is “bound to be on night tables and struggling with losses and is about to undergo its image in the West — much as Rose Marie Kindles, in backpacks and purses.” It’s 96 pages — a departure for Andersen: both a major restructuring, put Aquascutum up for Bravo had done at Burberry. She signed a of his most recent books, the novels “Turn of the Century” and “Heyday,” were more sale last October. Renown is also Aquascutum’s series of licenses for footwear, ties, scarves than 600 pages each and published eight years apart. — I.C. licensee in Japan, and operates about 200 and accessories and worked with designers stores in the region. Michael Herz and Graeme Fidler to update COVER QUEEN: Condé Nast Traveler’s September issue usually features famous faces On Monday, a Renown spokeswoman con- the brand’s collections. Last month, Winser on its cover. Past celebrities have included Matt Damon, Bill Clinton and Ashley Judd. firmed Winser’s resignation. “We have no said Aquascutum’s sales rose 20 percent in This year, Queen Rania will be on the cover of the September Power of Travel issue. comment on this personnel change, since it’s the first quarter, and that fall 2009 wholesale The edition will outline places, people and ideas shaping travel and its impact on our foreign subsidiary, and basically we make sales in Europe are up 60 percent year-on- art, culture, fashion, technology, politics and the environment. Queen Rania’s eco- comments on domestic events,” she said. year. She also confirmed the brand is on track friendly work preserving parks in Jordan will be included. She tipped off her Twitter She declined to say why the board had to generate sales of 450 million pounds, or followers about her cover turn on Wednesday when she posted a picture of one of rejected Winser’s bid. $697.5 million at current exchange, by 2010. the locations with a post: “Just wrapped photo shoot. Love Jerash’s Roman ruins @ However, Takaaki Kawashima, a for- Aquascutum’s wholesale accounts in the sunset. C pix in Sept’s CondeNast Traveller.” In case you were wondering, she has mer chairman of Aquascutum and the for- U.S. include Bergdorf Goodman, Saks Fifth 85,861 followers as of Friday. — Stephanie D. Smith mer leading shareholder of Renown who Avenue and Bloomingdale’s. In Britain, the left in November, believes the Japanese company is expanding its space at Harrods, ALL IN THE FAMILY: His fetish model Mariacarla Boscono remains part of the firm rebuffed Winser for specific strategic Selfridges, Liberty and Harvey Nichols. picture, but otherwise, Riccardo Tisci is forging a new path with Givenchy’s reasons. “Renown’s focus is to maintain “She has both nurtured and protected the advertising. After nine seasons collaborating with Inez van Lamsweerde and Aquascutum’s profit base in Japan and Asia. brand throughout these difficult economic Vinoodh Matadin, Tisci tapped Mert Alas and Marcus Piggott for Givenchy’s fall- They do not comprehend that the value of times, and during her recent negotiations winter campaign, which features color photography, unexpected faces and a the brand, the core, the heritage comes from and attempts to do an mbo she has come stronger French accent. It is slated to break in the July issue of L’Uomo Vogue England,” he told WWD. “They just want to across grave challenges in Japan — both for men’s wear and French Vogue’s August issue for women’s ready-to-wear. sell as much as they can in China and Japan. culturally and financially — from the “It’s a new step,” Tisci said. “I wanted to give this feeling of going from a It’s a strategy that may work in the short board,” Marigay McKee, fashion and beauty studio to reality. It’s important to give reality to women.” term, but it will never do in the long term.” director at Harrods, said of Winser. Among the fierce and exotic beauties burning intensely from a gilded bedroom The spokeswoman declined to comment — With contributions from Koji Hirano, Tokyo in the Château de Ferrières is Leonor Scherrer, daughter of retired couturier Jean-Louis Scherrer. “I’m completely in love with her,” Tisci enthused. “For me, she represents France in all senses: the elegance, the aristocracy, the darkness of France.” The stern-looking models Iris Strubegger and Ranya Mordanova fit Givenchy’s touch-chic mould: More surprising is Adriana Lima, who trades her De Beers Names Delage CEO Victoria’s Secret sexpot look for hard glamour, sprawled over a bed with the latest Givenchy bag, yet to be named. The campaign features separate visuals for By Nina Jones eyewear and watches, while a trio of male models in naval-inspired fashions and glitter boots channel Tisci’s new Latin-inflected vision for men. LONDON — De Beers Diamond Jewellers has appointed Francois Delage to the post of chief Meanwhile, Tisci’s costume design duties continue to grow. The designer executive officer. said he’s creating new looks for Madonna’s ongoing tour, and also for Antony Delage, who is ceo of the new De Beers diamond brand Forevermark, succeeds Guy Hegarty of Antony and the Johnsons as the band tours Europe this summer. Leymarie, who will step down in January when his contract ends. Delage, 44, will report to Tisci described his creations for Antony as “men’s, women’s and couture all De Beers Diamond Jeweller’s board. The news confirms a report on WWD.com Friday. together” for a singer who is “between Klaus Nomi and Edith Piaf. His energy LVMH Moët Hennessy Louis Vuitton, which owns the jewelry company in a joint venture is so strong,” he enthused. — Miles Socha with De Beers, said Leymarie was resigning to pursue other interests. “I did six years at De Beers and I think we built very solid foundations,” Leymarie told WWD on Friday. “It’s An ad from a business model that’s proved to be resilient, so now it’s time for me to go on to new chal- Givenchy’s lenges.” fall-winter Leymarie, who joined De Beers in 2004, helped to spearhead the jewelry brand’s expan- campaign. sion into new markets, the U.S. in particular. In 2005, Leymarie oversaw the opening of a 6,000-square-foot De Beers flagship on New York’s Fifth Avenue and later that year opened a store on Beverly Hills’ Rodeo Drive. The jewelry house now has 40 stores worldwide, and in 2007 the brand launched an e- commerce site in the U.S. “To have put the brand on the retail map is something I’m quite proud of,” Leymarie said. As for his future projects, Leymarie said he has “some concrete ideas that I now have to make happen — maybe build up my own company.” Leymarie served as ceo of Cartier from 2001 to 2002, a company he joined in 1986. He also headed Dunhill, another Compagnie Financìere Richemont company, from 1999 to 2000. Before joining Forevermark two years ago, Delage was president of Louis Vuitton Asia- Pacific. De Beers launched Forevermark as a brand of diamonds selected for their ultra- high quality, and the diamonds are guaranteed to have been responsibly sourced and to have benefited the local communities where they were mined. The Forevermark brand has so far only launched in Asia, but the company eventually plans to launch the brand in more markets. De Beers tapped Stephen Lussier as Forevermark’s ceo while remaining the group executive director for external and corporate affairs. For more, see WWD.com. WWD, TUESDAY, MAY 26, 2009 13 WWD.COM Change Seen Coming Atop Italian Firms UNITE HERE Clash Intensifies By Kristi Ellis Continued from page one and in some cases lacked the strategic and/or Marco Salomoni, and Massimo Cremona. management skills or flexibility to do so. WASHINGTON — Bruce Raynor, general president of UNITE HERE plans But the statement did not address Di Risio’s fu- “The result is a negative performance that the to go before a federal judge as early as today to ask for an injunction ture, although sources confirmed he is expected to crisis cruelly accelerates,” Lanciaux said. against John Wilhelm, president of the hospitality division, who staged step down within the next few days. That would appear to be the case at Versace. a predawn entry into the union’s Manhattan headquarters on Friday. Instead, all the Versace statement said was, According to sources, despite Di Risio’s early It is the latest move in an internal power struggle between “With regards to the recent news items and ar- success at Versace — after 18 months in the job, Wilhelm and Raynor that led to the breakup of UNITE HERE into ticles that have appeared in the press, the board he returned the company to profitability in 2006 two entities and tied up millions of dollars worth of assets in federal unanimously and categorically denies the exis- — his strategy later built in one-off income items, court. (UNITE HERE was founded in 2004 in a merger of the Union tence of friction between the ceo and creative di- such as the Palazzo Versace Dubai set to open in of Needletrades, Industrial & Textile Employees and the Hospitality rector Donatella Versace regarding the necessary 2010, which are no longer competitive in this envi- Employees & Restaurant Employees International union.) policy of cutting costs. ronment. Versace also invested around 45 million Wilhelm entered the union’s headquarters located at 275 Seventh “The financial and operational management of euros, or $57.5 million, in 11 new stores, mainly in Avenue, which and houses Raynor’s offices and approximately 100 the company has always been the responsibility Asia, and has so far refused to drop prices, instead union officials, at 4:00 a.m. Friday morning. That’s where the con- of the ceo, as laid out by the corporate governance opting to re-launch secondary line Versus. sensus about the events ends. Raynor alleges that Wilhelm’s group of the company and the board has always unani- Discussing the dangers of the downturn with illegally and forcibly entered the building without a court order, took mously given priority to any actions taken to guar- WWD in February, Di Risio said: “The crisis over the offices, seized assets, implanted security guards, changed antee the patrimonial and financial stability of the doesn’t mean that you have to upset or change the the locks in different rooms and took documents and records. company,” the statement added. company. It just means that you have to be much Raynor said he has also been denied access to his offices at “vari- No further information on Di Risio’s future was more careful than before in terms of acquisitions ous times” since the Friday action. given, and a Versace spokeswoman declined com- or investments, and much more careful regarding “It is illegal. I am still president of this union,” said Raynor. ment. Sources said the company felt compelled to expenditure. If we were to completely rearrange “These were thuggish tactics.…This is a brand of unionism unknown issue the statement because of reports Di Risio the company and the crisis were to be finished in in our union and in our history. We will go before a federal judge was stepping down after clashes with Donatella a year, we would find a firm that was no longer po- and we will prevail in a lawful way.” Versace over cutting costs. sitioned in a certain way and that had undone its Wilhelm, with the backing of the union’s general executive board, If, as expected, Di Risio departs, it will mark strategy. That’s when you would find yourself in a suspended Raynor on May 14, accusing him of using union funds to the beginning of a summer of musical chairs at real crisis.” help support the breakaway Workers United union. But Raynor has Italian fashion houses, at least at the ceo level. However, sources said Friday: “In the current challenged the legality of the suspension and said it is not allowed Roberto Cavalli is searching for a ceo, and climate, shareholders are thinking, ‘first survive, under the union’s constitution. He has said he will serve out his leading executives at other labels then let’s talk philosophy.’” term, which expires at the end of June. are either already out, facing the Last year, net profits at Gianni A spokeswoman for Wilhelm said the group entered their own push or considering jumping. Versace SpA fell 30.7 percent to headquarters building on Friday morning based on signed affida- Cavalli, who is in talks to sell 9 million euros, or $13.2 million, vits they received from employees working there, “demonstrating a 20 percent stake in his busi- on revenues that rose 8.3 percent destruction of union records and theft of union records,” activities ness to Italian private equity firm to 336.3 million euros, or $494.3 they claimed have escalated. Clessidra SGR SpA, has sounded million. Dollar figures were The spokeswoman also alleged that the breakaway union, out a number of executives at converted at average exchange Workers United, used a “Defense Department-grade program to rival houses regarding taking the rates for the periods to which scrub UNITE HERE computers” of their records. “We are doing ev- reins of his business, WWD un- they refer. The company has not erything we can to prevent further destruction to records and prop- derstands. His daughter, Cristiana disclosed its net indebtedness, erty,” the spokeswoman said. Cavalli, is company president but, although Di Risio told WWD in She said security officers will be posted to prevent the further as yet, there is no ceo. February is was less than 20 per- alleged destruction of records. Elsewhere, some executives cent of turnover. have either been shown the door “But you don’t get fired just or run for it. Gucci Group dis- for [financial and strategic rea- missed Didier Bonnin as presi- sons],” sources said. “It doesn’t dent and ceo of footwear and look like Di Risio played his accessories subsidiary Sergio cards too well.” Rossi SpA last week, after two Di Risio’s autocratic and hands- years in the job, and appointed on management style is thought to former YSL Beauté chief finan- have led to a breakdown in rela- K_`jjldd\i# cial officer and managing direc- tions with the family when the re- tor of the Roger & Gallet beauty sults did not materialize. brand, Christophe Mélard, on Brambilla anticipated more ex- Monday; Brian Blake quit Prada ecutive changes to come. ]fZljfeXe\n[`i\Zk`fe% SpA in April for personal rea- Giancarlo Di Risio According to sources, those sons, after 18 months as chief companies observers are keeping operating officer and commer- a close eye on include Valentino cial director. (Brought in ahead of an initial Fashion Group, where ceo Stefano Sassi has public offering, which was postponed yet again, been feeling the heat from private equity owners Blake has not been replaced.) The same month, Permira; at Salvatore Ferragamo, which has indef- Marco Franchini relinquished the top job at initely delayed a much-anticipated ipo and where Bally International AG for personal reasons, after ceo Michele Norsa’s relationship with the found- seven years at the helm. ing family is under strain, for similar reasons to Di Speaking on condition of anonymity, one leader Risio and the Versaces, and at Jil Sander, where of an Italian fashion company said, “Everybody’s ceo Gian Giacomo Ferraris is said to be unhappy reputation is being shattered in this climate. since Onward Holdings Co. Ltd. acquired the label Executives are not as bad as they look when they in September. are losing, just as they are not as good when they However, Lanciaux cautioned that personnel are winning. The problem is that shareholders are change did not necessarily guarantee success. thinking in absolute terms not relative terms.” “Miracle men don’t exist,” Lanciaux said. Giovanna Brambilla, partner at Milan-based “Collaboration and team work are needed at all executive search firm Value Search, a member of levels of a business.” the Taplow Group, said a changing of the guard Lanciaux added that Italian luxury and fash- was to be expected with the unprecedented fi- ion houses needed to put into executive search nancial and economic crisis and, in some cases, the same rigor and pleasure they take in making new ownership, forcing companies to rethink products. 8i\ pfl cffb`e^ kf X[mXeZ\ pfli I\hl\jkX?fkKfg`Zj strategy and, with it, their executive committee “Dare I say that the successful post reces- ZXi\\i fi ZfdgXep6 =@K f]]\ij ZXkXcf^l\1 and senior management. sion…companies will be those that succeed in _le[i\[j f] Zflij\j kX`cfi\[ ]fi nnn%ÔkepZ%\[l&nn[ “Big events accelerate change and the crisis aligning great products and organizational re- is doing just that. Companies are looking for im- newal,” she said. gif]\jj`feXcj`ek_\]Xj_`fe`e[ljkip ($///$=@K$@J$EP:o+- provements in performance and the stress levels The Italian press has linked a wide array of Xe[ i\cXk\[ Ô\c[j% Fli Zfem\e`\ek JZ_ffcf]:fek`el`e^Xe[ are much higher at the top level,” Brambilla said. executives to the opening at Cavalli, although \m\e`e^ Xe[ [Xp ZcXjj\j Zfm\i X Gif]\jj`feXcJkl[`\j Concetta Lanciaux, principal of Switzerland- Ferraris is the front-runner, WWD under- n`[\iXe^\f]kfg`Zj1 =Xj_`fe@ejk`klk\f]K\Z_efcf^p based Strategy Luxury Advisors, added that the stands. One source speculated that Ferraris and “generational transformation” in Italy, “where Ferragamo’s Norsa could also enter the frame ›;\j`^eXe[dXel]XZkli`e^ JkXk\Le`m\ij`kpf]E\nPfib many family businesses are [experiencing] the at Versace. ›:fdglk\ik\Z_efcf^p pain of delegating to the first generation [of] pro- “Di Risio’s replacement will likely come from ›DXib\k`e^Xe[gifdfk`fe fessional management” — something which hap- industry and quickly,” sources said. ›I\kX`c#YiXe[`e^#Xe[dXk_ pened in France a decade ago — was compound- However, Brambilla said the sector was suf- ing the delicacy of the situation. fering from strategic homogenization and needed “As a consequence the executive model is being new blood and fresh thinking. [revisited] to its core,” Lanciaux said. “If you move a person from brand A to brand Gif]\jj`feXc;\m\cfgd\ek She explained that executives in Italy who had B to brand C, etcetera, the kind of strategic ap- been hired to do a specific job, such as rational- proach they bring is more or less the same. By >fjfd\n_\i\`ek\i\jk`e^k_`jjldd\i% ize a collapsing business, once this was achieved, bringing in expertise from other sectors, we can were being asked to go beyond their original remit enrich the system,” she said. 14 WWD, tuesday, may 26, 2009 WWD.COM Financial For full daily stock changes and more financial news, see WWD.com / business-news. Tough Outlook Hurts New York & Co. Stock By Alexandra Steigrad finished unchanged on Friday. Boscov’s Nearing Finance Goals During 2009, the retailer said it anticipated Shares of New York & Company Inc. opening three stores, remodeling four units By Kate Fleisher lost more than a quarter of their value over two and closing between 10 and 15 stores. days last week after the firm disappointed inves- Investors were kinder to Dress Barn Inc., The Boscov family, who purchased the assets of the tors with projections of a second-quarter loss. which substantially raised earnings guidance 39-store Boscov’s chain out The slide came despite the New York-based after reporting a strong reaction to its spring of bankruptcy in December, women’s apparel re- assortment late expects to have government tailer’s report of a Thursday. loans and guarantees in place first-quarter loss that Net income for the by June 2. matched consensus third quarter, ended “We’re moving along well,” estimates. The net April 25, fell 4.5 per- chairman Albert Boscov said loss was $4.9 million, cent to $23.9 million, last week after several en- or 8 cents a diluted or 39 cents a diluted couraging developments. share, against net share, but was 8 cents Those took the form of a income of $6.7 mil- above consensus esti- $500,000 loan guarantee from lion, or 11 cents, in mates. Year-ago prof- Cedar Shopping Centers the year-ago period. its were $24.9 million, and a promise by Luzerne Net sales in the or 39 cents. County, Pa., to backstop an- three months ended Sales rose 6.6 per- other $500,000 from Atlantic May 2 shrank 13.8 cent to $375.7 million County, N.J., should the ap- percent to $232.9 while comps moved propriation fail to get govern- million as compara- up 3 percent. By divi- ment approval. ble-store sales slid sion, sales for Dress Those funds, added to $35 15 percent. Gross Barn stores gained million from Pennsylvania and margin tumbled to 3 percent to $223.2 the cities and counties where 25.3 percent of sales million as comps Boscov’s has anchor stores, from 31.1 percent in rose 2 percent. Sales combines with $1 million from the year-ago quarter. at Maurices Stores New Jersey for a total close to Inventory fell about jumped 12 percent to the $40 million financing that 8 percent per store, $152.5 million, while is needed. and selling, general The company anticipated a loss for the second quarter. same-store sales Fear of losing Boscov’s and administrative gained 5 percent. successful anchor stores ap- expenses declined 8.3 percent. The company raised EPS guidance for the peared to drive last week’s The Boscov family said they expect to have Richard Crystal, chairman and chief ex- full year to between $1 and $1.05, up from its deal-making. Atlantic County needed funding by June 2. ecutive officer, said the company has main- previous range of 70 to 85 cents. On Friday, executive Dennis Levinson tained strict management of its business, and shares of the Suffern, N.Y.-based retailer, expects the county freehold- planned “conservatively for the spring season, which operates 1,549 stores under its two er board “to weigh all the A lot hinges on Mr. based upon consumers’ ongoing preference nameplates, advanced 1.4 percent to $15.05. alternatives, none of which toward buying on discount versus regular For the nine months, income declined 16.8 are good, and do the right “Boscov’s success. If price,” which has resulted in “tempered” ex- percent to $43.3 million, or 70 cents a diluted thing.” pectations for the second quarter. share, as sales gained 3.1 percent to $1.1 billion. The alternative, he noted, he survives, there is Accordingly, the company expects a sec- “Our customer has responded positively would be a possible clos- ond-quarter loss similar to the one logged in to our spring merchandise and enabled us to ing of Boscov’s stores, which no downside…there is the first quarter, compared with the 7-cent generate a comparable-store sales gain de- could force mall closings. “A profit analysts were anticipating. The projec- spite the ongoing challenging market environ- lot hinges on Mr. Boscov’s a plus. tion contributed to a 27.6 percent erosion of ment,” said David R. Jaffe, president and ceo. success. If he survives, there the company’s shares Thursday, to $3.31. They — With contributions from Vicki M. Young is no downside…there is a —”­ Dennis Levinson, Atlantic plus.” County, N.J., executive Cedar Shopping chief ex- ecutive officer Leo S. Ullman said, “We’ve known Al Boscov an awfully long, long time and we have a lot of faith in his having very, very good Della Valle Sees Profit on Saks Stake stores.” Boscov’s has units in Cedar malls in Egg Harbor, N.J., and Camp By Arnold J. Karr Valle as “a great vendor for Saks and knows Hill, Pa. the business. I am happy he is an investor in The 97-year-old chain operates stores in five states: Pennsylvania, New Shares of Saks Inc. didn’t hold onto the company.” York, New Jersey, Maryland and Delaware. Boscov’s has been described all of the gains made last week, but Diego Della The Italian entrepreneur has yet to com- as the largest family-owned, full-service department store chain in the Valle has made a $3.1 million profit on his in- ment on his stake but, according to a pub- U.S. The typical store serves smaller, middle-market communities. creased investment in the luxury retailer. lished report in Italy, he wants to meet with Della Valle, chief executive officer of Tod’s Carlos Slim Helú, the Mexican billionaire who SpA, the Italian footwear and accessories firm owns 18.6 percent of Saks. that includes Saks on its account list, acquired The luxury chain arguably is more vulner- a 5.9 percent stake in Saks able to the dip in spending Arcandor Still Waiting through the acquisition of by affluent consumers than 8.48 million shares between any other publicly held re- Feb. 20 and May 7. The total tailer — Nordstrom Inc. has On State Aid Decision consideration for the stake a greater assortment of more was $30.3 million, making moderately priced goods By Damien McGuinness the average price paid $3.57 and Neiman Marcus Inc. is a share. privately held, although it BERLIN — Time is running out for Arcandor, the parent company of trou- When Della Valle’s hold- still reports both monthly bled German department store Karstadt, after the German government ings in the firm were dis- same-store sales results delayed a decision on state aid. closed in a Schedule 13D and, because of public debt, Government officials here said Monday they want more details about filed with the Securities and quarterly earnings results. a possible merger between the department stores chain and rival retailer Exchange Commission on As a public company ca- Metro, and that a decision on whether to grant Arcandor state aid, which May 15, Saks’ shares closed tering to upscale shoppers, had been expected this week, now looks unlikely. at $3.34 and he was effec- especially in the wounded Arcandor had hoped that a state guarantee of 630 million euros, or tively out of pocket almost financial capital of New $882 million at current exchange, would help refinance its credit lines $2 million. York, Saks was a likely by June 12. Arcandor’s chief executive, Karl-Gerhard Eick, Monday reit- However, shares rallied recipient of Wall Street’s erated that if the state doesn’t come to the rescue within the next three on the disclosure of his in- doubts, but its volatil- weeks, the company will go under. Arcandor’s stock prices fell more than vestment Monday, rising 22.2 ity on the New York Stock a quarter on Monday morning following Eick’s comments. percent to $4.08 and turning Exchange has resulted in Last week, Metro called for a merger between Arcandor’s department his $2 million loss into a $4.3 Diego Della Valle wide, sometimes dramatic stores Karstadt and its own chain, Kaufhof, to bring together 247 stores million profit. They advanced swings in its share price. under the new name of Deutsche Warenhaus AG, or German Department another 17.9 percent on Tuesday, even as Saks For instance, on March 10, just weeks after Store Inc. reported a $5.1 million first-quarter loss, valu- Della Valle made his initial investment in Up to 10,000 jobs are at stake, and with a general election in ing his shares at $40.8 million, more than $10 the company, shares opened at $1.91 and September, the government will have to tread carefully. But ministers million more than he spent. went as high as $2.08 before dropping to have expressed doubts about bailing out a company which was already Shares fell during the rest of the week, their 52-week low of $1.50 and closing at experiencing problems before the financial crisis. ratcheting down 2 percent Friday to $3.94, but $1.57. In the last month alone, they’ve spent Arcandor has said that with or without the merger, state aid is still on paper, Della Valle was still holding a better time above $5 as well as a considerable urgently needed. According to Eick, a loan guarantee, which the group than $3.1 million profit. amount below $4. would pay interest on, would cost German taxpayers less than an insol- In comments after the disclosure of earn- Last week, they picked up 18 percent, well vency involving thousands of redundancies. ings results on Tuesday, Stephen I. Sadove, in excess of the 1 percent advance logged by In addition to the Karstadt stores, Arcandor owns mail-order unit chairman and ceo of Saks, described Della the S&P Retail Index during the same period. Primondo and the Thomas Cook travel business. WWD, TUESDAY, MAY 26, 2009 15 WWD.COM/CLASSIFIEDS Professional Services

For more career opportunities log on to WWDCareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. waitex provides www.ReduceYourRent.com Complete end-to-end supply chain solutions Finding a Rent Relief Solution That Suits Your Business • 25 years of experience in the garment industry • 3 million square feet of modern distribution facilities in NY, NJ, & LA Visit www.ReduceYourRent.com or • EDI, UCC128, ASN, TMS, scan & pack capability Call 1-800-494-0733 • Pick, pack & ship by piece or pre-packed carton • GOH/Flatpack storage by carton/unit/sq.ft NYC-Candice: (212) 967-8100 • Air/Sea world-wide cargo forwarding We Don’t Get Paid Unless LA-Alfred: (909) 829-9888 • Garment and label sewing We Reduce Your Rent Email: [email protected] • Hoffman Press / Steam tunnel www.waitex.com • 3000 world-wide service specialists WWD.COM/CLASSIFIEDS

For more career opportunities log on to WWDCareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. Spaces

Replenishment Planner - $85-95K. Designer $100-125K. Min 3 years cur- BOE. Current exp in analysis and alottments COMMERCIAL rent exp in bridge or better contempo- at wholesale garment co. Exp with dealing Licenses available: rary women’s woven sportswear mar- with Kohl’s, Walmart or K-Mart required. REAL ESTATE Men’s & Women’s Contemporary ket required. Well known Midtown co. Northern NJ loc. [email protected] •Knit and Woven Tops [email protected] 973-564-9236 973-564-9236 •Casual Bottoms •Denim •Accessories •Shoes •Swimwear•Eye Wear Licensing Director: Richard Stern DESIGNER Romeo & Juliet Couture Phone: 213-622-9622 Fax: 213-622-9422 Established Dress Manufacturer seek- Women’s Apparel Mfr. [email protected] ing designer with 3-5 years experience for evening/spec occasion line. Must 1. Production Manager have knowledge of construction and 2. Production Coordinator Showrooms & Lofts 3. Production Assistant BWAY 7TH AVE SIDE STREETS costing for domestic & import prod- ucts, as well as the ability to research 4. Merchandiser Great ’New’ Office Space Avail 5. Shipping ADAMS & CO. 212-679-5500 fabric & trim markets. Ability to develop product with commercial Fax: 347-826-4218 appeal a must. Must be organized, E-mail: [email protected] computer literate and can work in a fast paced environment. Email re- sumes to: [email protected] Accounts Receivable/Credit Assist to $40K . Min 1-2 years exp in credit dealing Earthbound LLC, one of the country’s w/factor disputes, returns, POD’s, etc. leading brand and licensing develop- Middlesex County, NJ. ment companies, is seeking the follow- [email protected] 973-564-9236 ing professionals to join our design team: Women’s Apparel Designer, specializing in woven and knit tops. JAPANESE ASSOCIATE/ASSISTANT Accessories Designer (shoes, PATTERNMAKER DESIGNER handbags and costume jewelry) Print SAMPLE AND PRODUCTION. Avant- Designer. Candidates should have Private Label Sportswear Importer both styling and design experience in Account Executive garde to commercial, excellent references, seeks professionals to expand our CAD. [email protected] / 845-222-3707 the mid-tier market and be highly mo- Catherine Malandrino seeks motivated company. We welcome independent, tivated, detail oriented, organized and and results oriented Account Executive organized, self-motivated & highly respon- have excellent computer skills. 5-7 to drive and develop our specialty sible candidates who are good team years experience in a related field store business nationwide. Must have PATTERNS, SAMPLES, players with strong communications required. Earthbound offers a great est’d strong specialty store relationships. skills. Email resumes and salary history work environment, competitive salar- Minimum of 3 years sales experience. PRODUCTIONS to: [email protected] All lines, Any styles. Fine Fast Service. ies and a comprehensive benefits Fax or email: 212-7689679 Call Sherry 212-719-0622. Chief Financial Officer (CFO) to package. Please send your resume, in [email protected] $175K. Current exp in fashion or acces- confidence, to: [email protected] sory co. req. Exp in licensing, royalties, Sales Key Account Exec. $$ Open. Cur- PATTERNS, SAMPLES, dealing with factors. Supervise 1 con- rent exp in selling private label knit or troller plus 4 others. Strong manager Factory Plant Manager Assist. $40- woven kidswear. Must have strong PRODUCTIONS 50K. Current exp in men’s or women’s Full service shop to the trade. needed. 100 mill vol private co. Midtown. current relationships with retail stores. [email protected] 973-564-9236 shirts required. Must have supervised [email protected] 973-564-9236 Fine fast work. 212-869-2699. minimum 20 individuals. NJ location [email protected] 973-564-9236 SALESPERSON Est’d. Eveningwear Co. seeks an exp’d., Head Merchandiser/ energetic, motivated, hard-working Sales Product development person with great communication & INTRODUCING High end fashion house seeks exp’d follow-up skills. Fax: 212-279-0216 merchandiser to work in collaboration w/sales & design team. Min 5 yrs exp and technical background req’d. Email: [email protected] Fax: 212-7689679

WWDCAREERS.COM Production Coordinator - Retail Store Manager $100 - 120K + bonus. Must have current exp in Headwear better/expensive mens suit store. Exp in de - Accessory co seeks experienced PC to veloping new stores. Will become director. An exclusive new careers book and track production and handle Midtown. $3,000 men’s suits, etc communication with factories. Min 5 [email protected] 973-564-9236 channel on WWD.COM years experience in wholesale production. Send resume w sal req to : [email protected]

Quality Control Director Shanghai Victoria Classics a major importer of fashion home Textiles seeks an indi- vidual to direct their QC team in Chi- na. To be considered you must have a min of 5 years exp managing a assurance/quality control team. Must possess a strong mgmt background and exp with woven fabrics and colors. We prefer home textile bkgd, but would consider fabric or apparel back- Experienced Patternmaker ground. See our ad online for more de- Seeks work. Missy & large sizes, tail. Send resume in confidence to: dresses, sportswear, jackets. [email protected] 973-985-1205 Another reason to love The Fabric of Our Lives ®

Zooey Deschanel AMERICA’S COTTON PRODUCERS AND IMPORTERS. ™ Service Mark/Trademark of Cotton Incorporated. © Incorporated, 2009. ™ Service Mark/Trademark COTTON PRODUCERS AND IMPORTERS. AMERICA’S

Critically acclaimed indie pop singer-songwriter Zooey Deschanel shows us how The Fabric of Our Lives® has become the fabric of her life in the latest advertising campaign from Cotton Incorporated. Along with country singer Miranda Lambert and R&B singer Jazmine Sullivan, Zooey demonstrates cotton’s style and versatility to a whole new generation of young women. And for you that means a whole new generation of customers.