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photo by thomas Iannaccone; styled by shoshannai schhofff A HolidaytoForget: AftershocksRoll OnFrom aDismalSeason and disappointed about the outcome; and disappointed abouttheoutcome; stretch of the holiday season. across America in the post-Christmas self-purchasing thedayatstores ruled and racksofdiscountedapparel and Returns, rummaging through racks By DavidMoin That left retailers feeling frustrated Apparel, page2. sale toPeacock near onBillBlass Agreement said FASHION: W s Women’s Newspaper Daily •December29,2008$3.00 Wear •TheRetailers’ Daily David Chusplitswith Tumi, page3.

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D consumers will still hit the stores, with consumers will still hitthestores,with loom. of moreretailbankruptcies on consumers’ psyche and the possibility 2009 as the recession takes a tighter hold earlier inthemonth,andfretting over on fourth-quarter profits than they were even more concerned about the impact Yet sometooksolace knowingthat deals, page3. gain traction M better lease

in seeking s RETAIL: Stores

The Right Mix on Accessories/Innerwear/Legwear dire sinceearly fall. outlook ontheseason,whichhas been strong enough to significantly alter the three days after Christmas, though not browse around. Traffic was strong in the to getoutofthehousewith kidsand the right incentives and even if it’s just d L.A.M.B.’s cottoncanvas andleatherbag. L.A.M.B.’s ideas — such as combining unexpected sophisticated but playful accessories. Designers are refining crafts-inspired Spade’s yarn and vinyl clutch, Rodo’s Here, clockwise from left, Kate studded calfskin slingback and materials — and using them in ay See closing store, Tracey Ross

L.A. retail Retail’s s pioneer RETAIL: page 2.

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2 WWD, MONDAY, DECEMBER 29, 2008 WWD.COM NexCen Close to Bill Blass Sale By Vicki M. Young at top dollar has been the lack lion, down from $4.2 million in of brand presence in stores, di- the 2007 quarter, NexCen dis- Peacock Apparel Group, a minishing the luster the brand closed in September. WwDAccessories/Innerwear/LegwearMonday men’s dress shirt and neckwear once held, particularly during The question of the potential firm, is closing in on a deal to the life of its namesake, who of the Blass brand is also cloud- GENERAL acquire the Bill Blass brand died in 2002. ed by the lack of a creative di- Returns, rummaging through the discount racks from NexCen Brands Inc., The designer’s target market, rector. Peter Som departed as 1 and self-purchasing ruled the day at stores across sources said. “the Ladies Who Lunch,” didn’t creative director of Bill Blass America in the final stretch of the holiday season. Although NexCen was be- appear to be buying the brand, women’s wear two months ago. lieved to have been seeking even at trunk shows. Bill Blass Michael Bastian remains cre- 3 Retailers may be faltering and closing stores, but more than $25 million for the New York, the direct marketing ative designer for men’s wear. in negotiations with developers they’re gaining designer brand in operation owned by Since Blass’ 1999 retirement, ground, according to executives. September, the asking private investment Steven Slowik, Lars Nilsson, 3 Travel accessories firm Tumi is parting ways with price may have fall- firm Angelo Gordon, Michael Vollbracht and Som executive creative director David Chu, who came en to less than half filed for bankruptcy have tried to fill his shoes. on board in 2006 to boost its profile. that amount, market in November under Before his exit, Som devel- sources said. the name Great oped a spring 2009 collection 4 EYE: A Q&A with Sirio Maccioni, founder of New Sources said the American Designer that was shown only to retail- York dining institution Le Cirque, who believes the two parties were close in Manhattan fed- ers. A September fashion show customer is always right. to a deal and that an eral court, and is in Bryant Park in New York was INNERWEAR: Frette, the luxury lingerie, linen and announcement might liquidating its op- scrapped amid complaints that, s 10 home accessories brand, has given a modernistic come as soon as today erations. According because of NexCen’s financial overhaul to its Madison Avenue flagship. if there were no last- to court records, the woes, it had failed to adequate- minute glitches. operation did $11.7 ly support the brand. ACCESSORIES: Designer bags, belts and shoes Executives at million in sales in Meanwhile, as Som contin- 11 have already caught on in India, but European Peacock Apparel and the first 10 months ued work on the collection, he jewelry still faces many obstacles. NexCen could not be of this year. learned that NexCen “knew very Looking to strengthen its Fashion Focus produc- reached for comment. As a brand little about how to run a luxury 12 Based in South management firm, brand, much less rebrand one,” tion, Chicago managers are awaiting results of a study to show how it ranks in the fashion area. Korea and founded 18 A Bill Blass resort look. NexCen had signed a market source said. years ago by Cin Kim, licensees for Blass, NexCen closed the design- FINANCIAL: M&A activity remained muted in Peacock, which holds men’s fur- but the value of the licenses is er’s ready-to-wear collection, 13 November, leaving the value of deals this year in nishings licenses from Colours nearly impossible to determine Bill Blass Couture, on Dec. 19, consumer products down substantially. by Alexander Julian and because the licensed products putting more than 60 employees Haggar, among other brands, is have yet to hit stores. Although out of work. Given the closure Classified Advertisements...... 15 a midtier supplier that special- an expansion of the Blass li- and the brand’s recent absence izes in shirt-and-tie gift sets and cense portfolio was envisioned from the New York runway, few To e-mail reporters and editors at WWD, the address is innovative packaging. Should it by NexCen, the potential for expect it to be resurrected in [email protected], using the individual’s name. ink a deal for Blass, Peacock is royalty revenue is difficult to couture form. To consolidate WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 expected to move the brand in a read because of the recent in- the elements of the Blass brand, FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 196, NO. 133. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with more moderate direction. stability of NexCen and, partly NexCen bought the rtw opera- one additional issue in January, October and December, two additional issues in March, April, May, June, August and Robert D’Loren, former chief as a result of it, the weak status tion from Michael Groveman November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division executive officer of NexCen, of Blass in the retail market. and Carly Andrews Inc. of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. engineered the deal for the In the second quarter ended Not unlike the Waverly brand, Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage firm to acquire the Blass brand June 30, licensing revenues for Bill Blass has been immobilized paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. in December 2006 for $54.6 mil- Blass and the Waverly home by the problems of its parent Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES lion in cash and stock. At the furnishings brand, since sold company. NexCen’s financial TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS time, many in the marketplace to Iconix Brand Group for $26 difficulties were further compli- CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA believed NexCen overpaid. million and the assumption of cated by its purchase of Great 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 A roadblock to a sale of Blass future liabilities, were $2.4 mil- American Cookie in January. 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 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 Chanel to Cut 200 Jobs in France RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR PARIS — Chanel will lay off 200 A company spokeswoman said it would pull the plug on its ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER employees here on Dec. 31, ac- had no comment Sunday. costly Mobile Art exhibition that MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY cording to local press reports. The Chanel news comes was slated to travel to major cit- WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE The workers said to be af- swiftly after reports circu- ies worldwide in a Space Age ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. fected have either short-term lated here that cataloguer 3 prefab structure designed by contracts or are engaged on Suisses is to announce early architect Zaha Hadid. At the an interim basis. Workers in next year approximately 400 time, a Chanel spokeswoman DAILY Chanel’s Verneuil-en-Halatte, job cuts. And in late October, said, “Considering the current I don’t need to be a France, location reportedly will mail-order giant La Redoute economic crisis, we decided it “ be the most affected, while 16 revealed plans to shed about was best to stop the project. We QUote showroom, and that’s employees in the company’s his- 13 percent of its workforce, or will be concentrating on strate- toric rue Cambon store are also some 600 positions. gic growth investments.” what I was becoming. said to be losing their jobs. Earlier this month, Chanel — Jennifer Weil — Tracey Ross.” Page 2. coming this week Tracey Ross to Close Iconic Boutique TUESDAY: The Conference Board releases the Consumer Confidence Index for December. By Anne Riley-Katz don’t need to be a showroom, and that’s what I was becoming.” LOS ANGELES — Tracey Ross, the pioneering bou- The boutique carries lines such as Hysteric SUNDAY: AccessoriesTheShow, Moda Manhattan, FAME and tique owner who’s been a fixture here for almost Glamour, Derek Lam, Thakoon, Stella McCartney Nouveau Collective Lifestyle Show, New York (through Jan. 6). two decades, is closing her namesake store on New and Jenni Kayne. Year’s Eve because of fallout from the recession. “This is a very sad day in Los Angeles,” cloth- Ross first opened her shop, on now-trendy ing designer John Eshaya said of Ross’ decision TODAY ON MOST VIEWED Robertson Boulevard, in 1990 before moving to to shut down. “It’s heartbreaking to see someone • Retailers Get Holiday Reality the Sunset Plaza district in West Hollywood in who’s been such a fixture here close her doors. .com Check 1996, where her iconic, 1,600-square-foot bou- These are awful times.” WWD • Liz Claiborne: Out With the tique has drawn a dedicated following from California has been particularly hard hit by the Old, In With the New celebrities such as Kate Hudson and Courtney economic downturn. Unemployment is rising as • Accessories Falter as Love. home prices continue to decline. Credit is almost Economy Takes Its Toll “Of course it’s the economy,” Ross said in ex- nonexistent, consumer confidence is low and the • Plastic Wrapped: Shoppers plaining her decision. “I’m very proud of what state government is in danger of running out of I’ve done here, but I’m just over it right now. money as the budget deficit balloons to more than Back Away From Credit e After 18 years, you know when it’s time to exit $40 billion in the current and next fiscal year. All E gracefully and with dignity.” of this has squeezed the retail landscape. hins MOST E-MAILED C • Trend: New Year’s Larger chains that do a higher volume of busi- The casualties have mounted with the bank- • Retail Leases Under Pressure Eve looks • Chanel Cancels Mobile Art ness are offering steep discounts, putting spe- ruptcy and liquidation of a major California- eorge cialty boutiques like Tracey Ross at serious risk. based midtier chain, Mervyns, and the closure G • Global breaking Tour by

“When wealthy customers who can afford to of about 160 Pacific Sunwear concept stores, as news • Retailers Get Holiday Reality hoto

P Check pay retail are getting 80 percent off at Saks or well as high-end boutiques like Sergio Rossi on • Daily stock demanding discounts…it makes it impossible Melrose Place, Robert Clergie, agnès b., Ghost • Dallas Readies for Return of for smaller boutiques to compete,” Ross said. “I and Horn on Robertson Boulevard. Carmen Marc Valvo prices the Bushes WWD, MONDAY, DECEMBER 29, 2008 3 WWD.COM Power Shift: Retailers Push Landlords for Better Deals By David Moin cy rate at the end of the third quarter this year, com- are sending e-mails about rent reductions. Even mall pared with a 97 percent occupancy at the end of the developers that have vacant space are talking about Retailers may be faltering and closing fourth quarter in 2007. The company projects a 150 to [renting in-line space] to pop-up stores.” stores, but in negotiations with developers they’re gain- 200 basis point decline in the first half and then sees the Not all landlords are reducing rents, at least for now. ing ground. rate starting to climb back up in the second half. As Alan Victor, executive vice president of Lansco, in- The shift was noticeable at the International Council Diversified, said Hurwitz, has accelerated lease re- dicated, “Friedland Realty [which has properties on for Shopping Centers New York Dealmaking Convention newal efforts to counter the declining occupancy rate. Madison Avenue] is not budging because it feels that if earlier this month, where, traditionally, landlords had “There continues to be enormous pressure on moder- it lowers the rent on one property, it will have a negative the upper hand. Not so much anymore. ate to better women’s ready-to-wear at the department effect on the others. But that is the exception.” “There are retailers asking for concessions. No two store and specialty store level,” Hurwitz said. Dan Pisark, vice president of retail services for ways around it,” said Malachy Kavanagh, spokesman for However, “landlords aren’t giving in as quickly as the 34th Street Partnership and the Bryant Park the ICSC. “From a developer’s standpoint, you’ve got to most retailers would like to see.” Corporation, suggested there were friendly conversa- balance who really needs a concession versus people “Obviously we want to see our tenants do better,” tions at the convention but wondered how many would asking because now is the time to ask. A retailer may said Frank Castagna, principal of Castagna Realty Co. lead to deals. “There’s a lot of space on the market, in- not be doing bad, but is seeking it anyway.” Inc. and owner of the Americana Manhasset luxury cluding the Banana Republic store on West 34th Street,” “Retailers are asking for tougher deals, putting pres- center on Long Island. “We are really looking at how he said, noting that the retailer has renewed its lease sure on retail rents,” said Daniel B. Hurwitz, president to help, where can you reduce operating costs, such as for one more year. and chief operating officer, Developers Diversified Gary Alterman, senior vice president of Robert K. Realty, one of the nation’s largest owners and op- Futterman & Assoc., said, “Some landlords are mak- erators of community centers, lifestyle centers, en- ing concessions but retailers are holding off [on com- closed malls and other properties. “The full effects mitting to leases] to see if things get worse and rents of the economy have yet to be felt.” go down. Rents are not softening on A locations on “Midtier folks with acceptable financial posi- Fifth Avenue, in SoHo and in Times Square. Did they tions may seek some limited rent relief,” affect- soften on Third Avenue north of Bloomingdale’s? ing a small percentage of the store base, said John Probably. There’s a lot of space available. We’ll see Bemis, executive vice president, director of leas- rents soften on Wall Street where they had skyrock- ing and development, Jones Lang Lasalle, which eted [prior to the economic downturn].” specializes in real estate services and investment However, across the country, generally, management. He cited one instance where a major “Landlords were much more willing to cooper- specialty chain, after a real estate portfolio review, ate in order to make deals. It looked like the wind got at least one landlord to lower rents from $22 or had been knocked out of their sails,” said Steve $23 a foot to $15 in several locations. Greenberg, president of the Greenberg Group re- With the recession deepening and the pipeline tail real estate advisers. “In the past, the big five for new projects virtually empty, concessions to re- — Simon, Macerich, Westfield, General Growth and tailers on rents, build-outs and termination rights, Taubman — were somewhat like bullies. Certainly where retailers can get out of a lease based on sales today the playing field has shifted. The leverage has levels, were front and center at the convention. gone over to the tenant side. My clients and I are Three years ago, 10-year leases were the standard. Unlike many other malls nationwide losing tenants, Beverly Center in Los actually benefiting from what’s going on. We’re try- Now it’s not unusual to sign two- to five-year leases. Angeles remains “close to capacity” according to owner Taubman Centers. ing to negotiate very favorable deals,” Greenberg The length of the lease deal cycle has almost dou- said, citing Lacoste, Façonnable and Vince, a divi- bled, from 60 to 90 days to 120 to 180 days, because sion of Kellwood Co., as among his clients seeking retailers are getting more demanding, requiring longer in advertising and marketing, cutting electric costs — locations. “They’re all sitting on healthy balance sheets, negotiations. Significant changes in the substance and how you can pass benefits to improve their margins. As but being prudent, conservative and careful. We are still length of talks between stores and landlords have been far as renegotiating [rents], we don’t have any of those making deals. Not all retailers are in a cash crunch.” noticed since last summer, developers said. problems, as long as we can maintain sales.” He said “Occupancy rates have plummeted, particularly in With retailers counting every penny and closing the Americana in 2007 generated $1,430 a square foot, B and C level, older malls and strip centers. In some stores, landlords are showing some flexibility. They and should be 5 to 7 percent up in 2008. “The key luxury malls, store occupancy rates are falling below 75 per- don’t want to lose more tenants than they’ve already players have held their numbers,” Castagna said. “They cent,” said Isaac Lagnado, president of Tactical Retail lost, and are intent on shoring up their existing prop- are still in the black, and not in negative territory, with Solutions. “Ironically, the most credit-worthy tenants, erties since new ones aren’t being developed. There few exceptions.” the anchor department stores like Macy’s or J.C. Penney, were even cases where retailers sign leases and have “The important thing is that we signed a lease in this or category killers like Best Buy, are the ones that pay an option to wait a year to move in, conceivably when environment,” said Gary Trock, senior vice president the lowest rent, or sometimes no rent. The national the economy im-proves. of retail services at CB Richard Ellis, the broker who speciality chains like Gap or Limited also have a good “There is no rule of thumb,” said Bemis. “In a worked on getting J. Crew to take a 4,600-square-foot deal of clout and pay considerably less as a percent- center that is 100 percent leased and doing $500 a space on 14 Main Street in East Hampton, N.Y. “We are age of revenue than the one- to five-unit local operator foot, [the landlord] may want to take that space back,” absolutely seeing rents soften. In the heat of the negoti- or even regional retailers. Malls make their money on rather than renegotiate to a lower rent. Sources at the ations, landlords are giving a little better concessions.” these smaller players, where the combination of fixed convention said many chains are asking for conces- What’s troubling, said Trock, is that “we lost our pipe- rent and percent rent plus various assessments [utili- sions, among them Zale, Sterling, Gap, American Eagle, line,” referring to the dearth of retail projects on the ho- ties, common area maintenance charges, taxes, etc.] can Limited, Talbots, Chico’s, Loft, Goody’s and Stein Mart. rizon. “We don’t know what will happen in six months.” exceed 15 percent of sales even rising to almost 20 per- Attendance at the event was down this year to 6,700, “The majors only sent a small portion of their leas- cent, rivaled only by payroll costs as nonmerchandise from 7,200 last year, ICSC said. ing agents” to ICSC, said Jeffrey C. Paisner, a retail expense items. In a violent downturn such as now, this According to Hurwitz, there will be pressure on occupan- broker at Ripco. “Developers that were overleveraged is an unsustainable expense level for small stores. The cy rates for the next 12 to 18 months. “There are two scenar- can’t get financing. Projects like River Oaks in Houston, upshot of this is an increasing level of delinquency on ios, both of which will lead to occupancy declines — more the Streets of Buckhead in Atlanta and the Eschelon in rent bills — delays and sometimes outright nonpayment store closings and it will take longer to fill the space.” Las Vegas are on hold. There are price reductions for or partial payment.” He said Diversified had about a 95 percent occupan- Manhattan rents. Eighty-percent of the landlord reps — With contributions from Sharon Edelson David Chu and Tumi Go Separate Ways David Chu By Jean Scheidnes nesses under the company he But he had never designed vating existing locations. The started in 2004 after his exit from women’s accessories, and Tumi new interiors were designed to Tumi is parting with ex- Nautica, which he created and wanted to invigorate its wom- be more inviting to women, with ecutive creative director David sold for at least $104 million. en’s handbag and accessories features such as red glass chan- Chu almost two years after he “We’ve accomplished what business, as women’s comprised deliers. When the first new con- was brought on board to help we set out to do, which was to el- only 10 percent of accessories cept bowed on Madison Avenue, reposition the travel accessory evate the brand to a whole new and lifestyle sales and one-third it prominently featured products company as a larger and more level,” Chu said. of luggage sales. for women and did not carry fashionable player in the luxu- Tumi did not name a suc- Four new handbag collections Tumi’s core luggage products. ry market. cessor for Chu, who oversaw hit stores in June 2007, priced “The work that David and Chu initially took an equity product design, store design, from $295 to $695. Chu hired Tumi have done together has helping the luxury segment grow stake in privately held Tumi advertising and public rela- advertising guru David Lipman, been extremely well received by to 15 percent from 5 percent of that he described as “meaning- tions. In addition, he was origi- photographer Michael Thompson consumers, the retail trade and Tumi’s total business. ful and significant.” Chu and nally tapped for his strategic and model Shalom Harlow to the press both in the U.S. and He will continue to run David Tumi chief executive officer vision to develop the business. create a slick campaign convey- in our international markets,” Chu Design International, which Laurence Franklin did not com- Tumi, based in South Plainfield, ing Tumi’s new image. Franklin said. “Tumi is definite- operates his eponymous bespoke ment on whether Chu’s stake N.J., and known for modern lug- Tumi simultaneously courted ly at a different level in terms of collection; his golf-inspired would change. gage made from ballistic nylon, the male luxury consumer with global brand development than apparel brand, Lincs–David They said the mutual decision wanted to expand globally into new totes and briefcases and a we were when we began our col- Chu, and the Mallory & Church not to renew his contract, which more luxurious and fashionable collection of hard-sided trunks, in- laboration with David.” neckwear and hosiery business. runs through Dec. 31, was made realms. Chu envisioned Tumi as cluding one built to hold 12 pairs The company’s global retail Lincs recently signed a sponsor- so that each party could focus on a travel-lifestyle brand evoking of shoes and another for jewelry. sales rose to more than $375 mil- ship deal with the Golf Channel their core business development. the glamorous golden ages of In addition, Tumi began lion in 2007 from $350 million in and is rolling out to 200 Dillard’s Chu has three men’s wear busi- air- and steam-travel. opening new stores and reno- 2006. Franklin credited Chu with doors for spring. 4 WWD, MONDAY, DECEMBER 29, 2008 WWD.COM

Jennifer Connelly in Givenchy. Circus act Sirio Maccioni, the founder of New York dining institution Le Cirque, is a man who believes the customer is always right. When deciding which dish to serve or what building to lease, the affable Italian seeks the counsel of longtime clients like Henry Kissinger and Oscar de la Renta. Not surprisingly, this is the cause of much consternation for his three sons, Mario, Marco and Mauro, who are partners in their father’s business. That’s not the only thing they disagree on. Maccioni claims Le Cirque is still going strong despite published statements made by his sons that suggest otherwise. Tonight, the family’s dirty laundry — or dishes, as it were — is being aired in the HBO documentary “Le Cirque: A Table in Heaven.” The film chronicles the restaurant’s final days in the Palace Hotel during 2004 and the opening of its current location in the Bloomberg Tower. Looking back on his 40 years in the business, Maccioni says, “I realized why I was very successful with the first opening [at the Mayfair Hotel — because I was alone. I didn’t have to discuss anything with anybody. I made my own mistakes, and I corrected them.” The restaurateur spoke with WWD about family feuds with his sons, his legacy and his fondness for Mickey D’s. — Emily Holt

WWD: The documentary is a lot of fun. Did you have fun doing it? Sirio Maccioni: No. I’m too old and too fat.

WWD: Was the film your idea? S.M.: It was my idea unfortunately. About 10 years ago, I said to two young guys, “Would you like to do a tape of my restaurant?” And then they start to come to me with a microphone. I said, “Why do you need a microphone?” My son said, “Dad, don’t be so difficult.” We fight all the time, anyway, we’re screaming. We are Italian, for god’s sake. Arguing is normal, is healthy. Sarah Jessica Gwyneth Paltrow in Parker in Balmain. Antonio Berardi. Peekaboo “Baby, it’s cold outside,” Ray Charles famously crooned — and BOY, he’s never been more right. But parties don’t pause for a frosty snap, leaving intrepid ladies with a dilemma: how to leave the house without looking like a bundled up snowman? The

answer for some has been to spice up their weather-required long sleeves and hemlines with day suggestive glimpses of bare skin. Witness Jennifer Connelly’s choice for a Tokyo premiere, anne

a bondage-worthy LBD that was anything but prim and proper, or Sarah Jessica Parker’s by cobweblike Balmain frock, which offered sneak peeks of her décolletage through bejeweled netting. Photographer Poppy de Villeneuve opted to bare a mere sliver of shoulder while Vena Cava’s Lisa Mayock photo donned her own well-ventilated design. And while some revelers are covered up from the neck down, Gwyneth Paltrow threw caution to the winds and exposed (almost) all in a knicker-revealing Antonio We fight all the time, anyway, Berardi dress. Who needs heat? Global warming indeed. we’re“ screaming. We are Italian, Poppy de Maggie Betts in Chanel. for god’s sake.­ Villeneuve in ” — Sirio Maccioni Zac Posen.

WWD: Do you think that maybe your sons are as stubborn as you? S.M.: We have a great relationship, but the point is that this was the last restaurant opened by a family. Today you need a bank or whatever it is, because it’s too expensive. We are 10 percent over last year, but I’m worried about what will happen in January and February.

WWD: Are you surprised by your success?

hner S.M.: I’m always surprised. I’m always worried — now c i E especially. Everybody tells me they’re down 20 percent. I don’t even feel like telling people that I’m better than last year. But

Steve I’m worried because I don’t understand the reason. Maybe I do by s understand the reason. Le Cirque is strictly New York people. New York people don’t eat at home; New York people go out. other ll A

; WWD: You seem to have a very close relationship with your s regular guests. mage I

S.M.: They know better than me. I see Dr. Kissinger every day. Cassia Avila Lisa Mayock in Even though Mr. Kissinger says, “Sirio, my name is Henry.” I etty G Vena Cava. keep on saying, “Yes, Dr. Kissinger.” You have to know how to yan/

R keep your distance. c ri E WWD: There is a scene in the film where your wife and two of BY

w your sons eat at McDonald’s. Do you go there a lot? S.M.: Yes, we do. I like hamburgers. [Do] we need to go out, to altro P go to another big restaurant, to such-and-such restaurant? I am not in the mood. When I want to really eat great, I eat at home mage; I when my wife cooks.

WWD: You have four grandchildren. Do you hope they join the Sato/Wire family business?

Jun S.M.: No. The only time I had a big fight with my sons was by Lauren Santo when they start to come into my business.

photo Domingo in Proenza WWD: So who do you hope will take over Le Cirque? Schouler. S.M.: My idea is to find the nicest and greatest chef to make a

Connelly partner. I think that is the way to go.

6 WWD, MONDAY, DECEMBER 29, 2008 Retail’s Rough Ride for Holiday

Continued from page one priced stores discounting; Nordstrom Inc., due to its less Last week, 60-to-70 percent off signs reigned on win- With Christmas falling last Thursday, retailers hoped aggressive pricing, and Sears Holdings Corp., because ter goods at stores as divergent as Dress Barn to Saks the ensuing Friday, Saturday and Sunday would amount of its dependence on big ticket home appliances, which Fifth Avenue, as desperation mounted to clear out fall to a replay of Black Friday weekend, which saw a good aren’t moving, and limited success remerchandising its and holiday merchandise to make room for fresh fash- uptick. But last weekend boiled down to lots of traffic softer side. ion. Kohl’s went as high as 80 percent on some goods, and little in the way of profitable transactions. In addition, the outlook for department stores is and J.C. Penney, in what it billed as its biggest ever “Stores were all packed, transactions were low, and it “negative.” after-Christmas sale, offered free wake-up calls to get was all on sale,” said one chief executive of a specialty “This could have been the last gasp before January, customers out shopping early. Penney’s and Macy’s both chain who requested anonymity, as did many executives February and March set in,” said one department store opened extra early on the day after Christmas, with this season. “The whole game is moving inventory.” executive, recapping last week’s results. “The customer Macy’s unlocking its doors at 5:30 a.m. With winter inventories still piled high and traffic is there but it takes great value to get them to come in. The early openings only perpetuated retailers’ what- winding down, retailers are in a quandary over convinc- The same old, same old is not going to work.” ever-it-takes attitude prevalent throughout the season. ing consumers to shop resort and spring merchandise, The ceo characterized last Monday, Tuesday and Apparently just a few days before the holiday, Target which is already trickling onto the selling floors at full Wednesday as “very strong days,” while the day after decided to extend Christmas Eve store hours at approx- price, while winter goods are still available at great Christmas was “spectacular,” he said. “But I can’t tell imately 500 units. The stores, which normally close at price reductions. you if it was enough. People were very focused and 6 p.m., stayed open to 7 p.m. “Traffic was pretty steady very specific on what they wanted to buy. They’d ask, throughout the day,” a Target spokesman said. “The ex- FORECASTING 2009 ‘Where’s the Juicy jewelry?’ There was a tremendous planation behind extending the store hours is that we Compounding their concerns were last weekend’s lit- amount of self-purchasing and numerous returns.” did it for customer convenience and to continue the mo- any of dismal reports projecting continued tough times Excluding auto and gas sales, retailers’ sales fell mentum of the holiday. There was a rush for last-minute next year, and double-digit declines across several cat- as much as 4 percent during the holiday season, on a gift items.” egories for holiday ’08. On Jan. 8, retailers will report same-store basis, as the weak economy and bad weather During the daytime hours of Christmas Eve, con- December comparable-store sales, providing a clearer created one of the worst holiday shopping climates in sumers shopped primarily for toys, electronics and gift picture on the holiday season. Aside from two bursts of modern times, according to SpendingPulse, a service of cards. “When we report monthly earnings, we’ll see traffic — Black Friday weekend and the three days be- MasterCard. Total sales were down anywhere from 5.5 that, for a variety of reasons, [consumers] altered their fore and after Christmas — holiday 2008 will be record- percent to 8 percent. As Michael McNamara, vice presi- shopping patterns for the holiday season, whether that ed as a monumental downer, and the worst Christmas in dent of Research and Analysis at MasterCard Advisors, means delaying the shopping or spending less money,” decades. The deepening recession, job worries, a short- said, “We had a very difficult economic environment. the spokesman said. “This season in particular, with ened calendar from Thanksgiving to Christmas, and bad Weather patterns were not favorable toward the end of worries over job security, mortgages and the weather through northern regions of the country the season, and that resulted in one of the most challeng- rough state of the economy, was a tough weekend before Christmas combined to create the per- ing economic seasons we’ve seen in decades.” season.” fect storm. At both hard and soft goods Among the prognosticators, stores, giveaways or “bundling” Standard & Poor’s projected sales of were commonplace, meaning if a general merchandise, apparel, fur- customer bought a computer, he niture/home furnishings and other could get free printer with it — categories declining about 5 percent even at one of the hottest stores in 2009, with unemployment rising holiday of the season, Apple. to 8 percent for the year on average, SOME WINNERS, MORE LOSERS Still, while holiday 2008 will be recorded as one of the worst, We are in a new if not the worst, in decades, there “ ’08 were some winning products and world where things categories. Aside from some off- pricers and discounters showing happen much faster gains, retailers this past weekend told WWD there were some strong with much wider selling brands, notably North Face and Uggs. Gloves and scarves, impact.­ typically strewn across makeshift — Henri” Barguirdjian, Graff displays and crowding main floor aisles, and a range of deeply dis- counted designer goods from Elie peaking at 8.3 percent in the fourth Tahari to Magaschoni and Stuart quarter, from the current 6.7 percent Weitzman to Jimmy Choo also rate. House prices are expected to caught the eyes of fashion custom- fall further, with an expected peak- ers. to-trough decline of approximately Cosmetics picked up last week, 30 percent, S&P said. but was disappointing most of the Consumers, like retailers, are season. The category remained Picky consumers left stores conserving cash, meaning less dis- regular-priced for most of the sea- with few shopping bags. cretionary spending. S&P projected son, as usual, and was upstaged by the savings rate to average 4.2 per- widely marked-down apparel and cent in 2009, up from 1.8 percent this year. DOUBLE-DIGIT DECREASES accessories. To gain some attention from the shopping “Unfortunately for retailers, economic drivers are SpendingPulse released some stunning declines: hordes, retailers and beauty firms discounted some gift worsening for the most part, and we think this recession women’s apparel sales fell 22.7 percent; men’s clothing sets for the first time ever. will last through the first half of 2009,” S&P said. sales were off 14.3 percent, and footwear sales fell 13.5 Gift cards were another big disappointment, with sales In the tough environment, there will be some win- percent, with specialty and department stores drop- declining after heady growth over the last five years. ners, which S&P listed as Wal-Mart Stores Inc., Dollar ping around 20 percent on average. The declines were The most recession-riddled sector was luxury, with Tree Inc., Family Dollar Stores Inc., GameStop Corp., even higher at electronic and appliance chains, which high-end national chains and single-unit designer bou- Guess Inc., The TJX Cos. Inc., Ross Stores Inc. and fell 26.7 percent, and were even steeper at luxury and tiques reporting steep declines. Buckle Inc. With gas prices declining precipitous- fine jewelry stores, which, in the early days of the re- “It was not the best season we ever had, needless to ly, consumers are encouraged to hit certain stores. cession, seemed to be weathering the storm, but in the say. The Madoff debacle added more negativity,” said Hypermarkets and supercenters, with their “ever-ex- end declined 34.5 percent during holiday. Online sales Henri Barguirdjian, president of Graff in the U.S., re- panding array” of food and general merchandise, will benefited from the bad weather in the northern U.S. ferring to the investment scandal involving financier gain appeal, as consumers trade down, even from Target just before Christmas. E-commerce sales ended down Bernard Madoff. “Given all that, we ended up much Corp., S&P said. 2.3 percent, but rose 1.8 percent in the final two weeks better than we thought we would. We revised our year- Another strong low-price performer recently has of the holiday season. end budget when the economy started to tank, set up been Forever 21 Inc., which has played well with The holiday sales season can account for up to 40 new objectives and reasonably passed them. That’s the America’s bargain-driven consumers. “Right now cus- percent of a retailer’s annual revenue. SpendingPulse’s good news. The more concerning news is we passed tomers are more value-oriented than ever, so it’s a great figures did not include post-Christmas sales, which can it with a much higher percentage of very big transac- time for us,” said Larry Meyer, the retailer’s senior vice be significant due to gift card redemptions and steeper tions, in the seven figures, while those in the $150,000 president and chief financial officer. “This year, with markdowns to draw traffic. However, there were far to $300,000 range — the bread and butter — tanked. If Christmas on a Thursday rather than a Tuesday like last fewer gift cards sold this holiday, partially because those larger sales don’t happen in 2009, we will really year, we had hoped that more people took Friday off. consumers were concerned that some retailers might be left hanging. The malls certainly seemed to see good foot traffic, and go bankrupt and then they would be unable to redeem “I’m worried about 2009. We deal with the super- our stores benefited from that,” added Meyer. them. Some of those concerns were spurred by mislead- high-end, and more regular clients, if you will, making However, the general consensus is that 2008 saw ing reports on the Internet. $200,000, $300,000, $500,000 a year who are not spending more losers than winners and that 2009 will see many Along with the severity of sales declines, there’s money because they have been tremendously affected retailers still struggling. Among the market share losers equal concern over the impact of the acutely promotion- by the economy. The first quarter of 2009 will be tremen- cited by S&P are AnnTaylor Stores Corp., due to higher- al environment and its affect on fourth-quarter profits. dously challenging for everybody. This is not the first WWD, MONDAY, DECEMBER 29, 2008 7 WWD.COM

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The Van Heusen outlet at Macy’s 34th Street Carlsbad Outlet Center. showcases its “Believe” letter-writing campaign to Santa.

Lots of shoppers, few shopping bags. Louis Vuitton on Fifth Avenue in Manhattan.

Serious shoppers at the Mall of America. financial crisis. This won’t be the last, but it took every- percent off, she reasoned. “A lot of smaller retailers, the mom-and-pops, will go one by surprise. We are in a new world where things “It’s troubling because you have to get rid of the out of business, because they [count on doing] a huge happen much faster with much wider impact.” stuff,” she said. “It was really hard on us when Neiman’s business like everyone else this time of year. The na- The haves are spending more like the have-nots. started discounting.…At the end of the day, people don’t tional chains can hang in because they’ve got a lot of “We’re giving each other one big gift instead of several want sales. When you mark it down it makes it less de- cash. As far as her take on the bottom line for the sea- little ones because we all have so much stuff,” said Kim sirable. Sale is not the way to run a business, and I hope son, Black concluded, “We believe this Christmas will Schlegel Whitman, a socially prominent Dallas author Neiman’s and everybody else realizes that.” be severely lacking in profitable sales.” of books on entertaining. Brian Bolke, owner of luxury store Forty Five Ten Other analysts believe that some regional retailers “Even some of the women in Dallas, said he didn’t get are also in jeopardy of going out of business or declar- who have millions and mil- the burst he expected in ing bankruptcy. lions are rethinking their the days before Christmas. purchasing,” said Bobbie Holiday 2008 may go down “People were in a mood,” he TRAFFIC COUNTS Baldrige, buying coordina- “ observed. “Men were not as Shoppers were out in force in Manhattan Friday tor for Tres Mariposas, an as one in which the consumer generous as they normally and Saturday, with crowds particularly big at upscale specialty store in would be, and women weren’t Bloomingdale’s, Saks Fifth Avenue, Macy’s and along El Paso, Tex. “One looked at psychologically reached a asking for what they normally Fifth and Madison Avenues. Southern California malls a St. John cardigan set for ask for. My reasoning is that were also busy Friday and Saturday. Even with the $1,300 and said, ‘I think I’ll tipping point in which enough there was such media over- traffic, two Saks sales associates said business was just wear the one I have in load and discounting hype just OK. my closet.’” was really enough. that it kind of turned a lot of The 3,500-space parking garage at Caruso Affiliated’s Sales were down only — Jennifer Black, Jennifer” Black & Associates people off.” The Grove shopping center in Los Angeles was filled about 5 percent so far this Some people shopping the to capacity by 1:30 p.m. Friday, though the developer’s month at Tres Mariposas, she sale racks asked for discounts recently built center in Glendale, Calif., didn’t fill up. said. Scarves and fashion jewelry did well but tradi- beyond the 60 percent marked, he noted. “We said no,” The Grove, which typically sees about 100,000 visitors tional gift categories of fine jewelry, handbags and furs Bolke said. “We have differentiated our product and as- a day during the holiday season, drew about 75,000 a all were off. sortment where we feel we can do that.” day this year. Connie Sigel, owner of Elements upscale boutique in “People are buying one or two things versus a whole “Nordstrom and Crate & Barrel had a really excep- Dallas, said she was unnerved by shoppers demanding bunch,” concurred retail analyst Jennifer Black of tional day, Barney’s Co-Op did quite well, too,” said discounts. “This year was weird — people were surlier Jennifer Black & Associates. “They are very specific as Caruso spokeswoman Jennifer Gordon. “We’re not a sale and almost disrespectful,” she observed. “I had a man to what they are buying. Holiday 2008 may go down as center, so people don’t typically come in early, though come in to pick up three gifts that were all wrapped one in which the consumer psychologically reached a traffic improves as the day wears on.” Gift card sales at up for his wife and he said, ‘What kind of deal are you tipping point in which enough was really enough. What Caruso’s properties were off from last year. going to give me?’ I felt like a hostage.” it means to us is the intensification of more focused, de- At Arcade, a high-end boutique opened three months New receipts of colorful spring sportswear and dress- liberate, budget-based consumer spending. It suggests ago on Melrose Avenue in Los Angeles, “Jewelry just es sportswear have been selling at full price, she noted, to us that only those who are differentiated to provide flew out the door for us,” said owner Rochelle Gores. including looks by Rory Becca and Mint by Jodi Arnold. what the consumer is looking for and tightly managed fi- “The extravagant items didn’t sell. Ball gowns just But it’s been harder to move fall clearance discounted nancially will be able to benefit in the longer term from haven’t moved at all. The world moves and you’ll see 40 to 70 percent because the “pack mentality” wants 75 the current economic headwinds. fashion react as well. I think people really want some- WWD, MONDAY, DECEMBER 29, 2008 9 WWD.COM Online Retailers See Traffic Easing By Cate T. Corcoran FOR THE FIRST TIME, ONLINE RETAILING DURING the holiday season was not a universal success. Forrester Research Inc.’s survey of 80 retailers shows growth in the low-double digits for the season, whereas comScore’s most recent data has online spending down 1 percent. Still, there were clear winners in the e-tail world. Amazon.com reported its best holiday season ever in its 14 years in business. “We’re really, really pleased by how the holidays went,” Amazon spokeswoman Tracy Ogden said Sunday. Traffic has been high for the last month, and shoppers ordered more than 6.3 million items, the company said. With the northern half of the country deep in snow last week, gifts and cold-weather gear proved popular, with shoppers lured by free overnight shipping promotions. Bestsellers included cashmere socks and pajamas, boots and coats, as well as $100 half-carat diamond stud earrings, and a $70 gold diamond cupcake pendant, Amazon said. Holiday 2008 was also good for Zappos, which sells shoes, accessories and apparel. “We’re still running well ahead of last year and had our first day ever over $6 mil- lion in gross merchandise sales on Dec. 15,” said Zappos vice president of merchandising Steve Hill. “Two thou- sand and eight will be the first year we pass $1 billion dol- lars in gross merchandise sales.” The company’s highest-volume days of the year were Dec. 15, 16 and 17. Lots of shoppers, few shopping bags. Louis Vuitton on Fifth Avenue in Manhattan.

Amazon.com said it had its best holiday season ever. Off-price retailer Overstock.com is down 15 percent in sales revenue for the quarter but will break even, said chief executive officer Patrick Byrne. Record-high dis- counts at department stores before Christmas made it difficult to compete. “For the kinds of goods we sell, it’s retail Armageddon,” he said. “We’ve gone into the bunker and are waiting for the radioactive mushroom crowd to drift by.” thing more versatile — an evening area manager for Simon Properties, He predicted an “unprecedented” wave of store clos- dress that cuts just above the knee, for which owns Mall of Georgia. ings in the near future, estimating full-price retailers that example, that can be worn for cock- Generally, for retailers heavily de- slashed prices will shrink 10 percent and those that did tail parties or black-tie events.” pendent on Christmas sales, the day not will contract 30 percent. Overstock is “buying very ag- “It’s definitely not about being ex- holiday after the holiday usually generates gressively right now” and predicts store closings will drive pensive right now,” said John Eshaya, around 60 percent of the volume of more shoppers online. The company did not have layoffs the former buyer for Ron Herman and what Black Friday does, said one re- but did not hire as many people as usual for the season. It Fred Segal stores who launched his tail ceo. has about 750 employees. Jet casualwear line this year in Santa “This weekend has really helped While predicting low-double-digit growth for the holi- Monica, Calif. “There are a lot of young merchants dig out of the hole,” said day period, Forrester sees high-single- to low-double-digit girls coming in, sometimes with their moms,’08 Piccolo, who named accessories, electron- growth overall for all of 2008, based on a series of surveys and they’re spending money.” He listed top holi- ics and gifts as the strongest categories, though of retailers through the Christmas season. day sellers as scarves, pillows, flannel shirts, sweat- apparel was tough. “There is not one major item that “We just finished a survey with about 80 retailers and shirts and sweatpants, all in the $50 to $100 range. people just have to have this year,” Piccolo said. “Even about 60 percent said sales were up for holiday season,” At Perimeter Mall, a regional center just north of the denim that sold was heavily, heavily discounted.” said Forrester analyst Sucharita Mulpuru. “Anecdotally, a Atlanta, shoppers turned out for deep discounts and Taubman Centers Inc., which owns or manages 24 lot of retailers told us there was a lot of delayed shopping while some used gift cards, the majority of sales came shopping centers, said on the day after Christmas, in December.” from new purchases. Macy’s, Nordstrom, Dillard’s and business started out light and picked up significantly The biggest days for online retailing tend to occur in Bloomingdale’s drew large crowds Friday and Saturday, in the afternoon, based on reports from some of its the week before Christmas, especially the three days be- bolstered by early openings and doorbusters. retail tenants. Many discounts seen earlier in the fore the holiday, she said. “We reached nearly 100 percent parking capacity week were repeated, while others were increased and Shoppers use the Internet for holiday shopping because around 2:30 Saturday afternoon,” said Dennis Kemp, sweetened with incentives. On average, 85 percent of there are “a lot of sales and good bargains.…It’s easier to general manager of Perimeter Mall, which is owned people were buying and the balance were making shop online than fight with crowds in a mall. There’s more by General Growth Properties. “Our valet parking exchanges and returns. There were “very little gift variety online, and typically a larger assortment of prod- reached full capacity by mid-afternoon as did our cus- card redemptions, 10 percent or less as of 2 p.m.,” ucts and opportunity to find extended sizes and colors you tomer paid self-parking area.” Taubman said. wouldn’t necessarily find in the offline world,” she said. Herman Heinle, president of high-end specialty re- At Aventura Mall, a Miami center owned by Forrester expects a weak first quarter and performance tailer Gus Mayer, with locations in Birmingham, Ala., Turnberry and Associates, tourists and residents came for the year similar to 2008. However, there could be a and Nashville, said most shoppers were taking advan- out for discounts that ran up to 70 percent. “I’ve never pickup in 2010 after the economy recovers, Mulpuru said. tage of steep post-holiday markdowns rather than re- seen such good markdowns in my life,” said Yamila According to comScore’s less optimistic analysis, from turning or exchanging. Bridge separates, collections Garayzar, vice president of marketing for the retail Nov. 1 through Dec. 21, consumers spent $24.71 billion and contemporary sportswear sold best last weekend, division of Turnberry. Garayzar said Aventura’s sales online, down 1 percent from the corresponding period while dresses, designer apparel and fur sales were are up from last year, but declined to specify. “This last year. sluggish. Temperatures Friday near 70 degrees de- year people were really expecting great sales so they Sales were off before Thanksgiving, but snow just be- terred outerwear sales, said Heinle. held off spending the cash they would normally spend fore Christmas in northern regions of the U.S., as well as Mall of Georgia, just north of Atlanta, had higher Black Friday until after Christmas.” the compressed holiday period, led to a “burst of activ- foot traffic this weekend than Black Friday and sales — With contributions from Anne Riley-Katz, Holly ity” close to the end of the year, said comScore chairman were driven by department stores, said Joe Piccolo, Haber, Elizabeth Thurman and Sharon Edelson. Gian Fulgoni. 10 WWD, MONDAY, DECEMBER 29, 2008 WWD.COM Innerwear Report Only Hearts’ 30-Year Work of Art Only Hearts, a retail and design company created by Helena Stuart for the “shameless romantic,” is celebrating its 30th anniversary. Stuart, a graduate of the Fashion Institute of Technology, started her business on Columbus Avenue in Manhattan as a “tiny, outrageous temple to all things heart-shaped” that showcased ev- erything from vintage lockets to sexy corsets. She opened the store after being fired as a saleswoman in the hosiery department at Bonwit Helena and Teller for not wearing a bra. Kaya Stuart. “I kept on saying to them, ‘I want to work in sportswear,’ and they kept telling me ‘no,’” Stuart recalled. “They had warned me for going braless, but one day I forgot to bring a little triangle bra by John Kloss to work with me. So they fired me.” Stuart now oversees a wholesale operation, two specialty shops in Manhattan, a boutique in Santa Monica, Calif., and three boutiques in Rome. Total combined annual sales are $2 million for the U.S. units, and 1.6 million euros, or approximately $2.1 million, for Italy, she said. The second floor’s contemporary setting. “We developed a neighborhood following” after launching on the Upper West Side, remembered Stuart, whose daughter, Kaya Stuart, is a partner in the business. Kaya, who attended Parsons School of Design and is a former Fresh Look at Frette’s N.Y. Flagship pastry chef, contributes to both management and design of the Helena Stuart for Only Hearts brand. By Karyn Monget Sleepwear and daywear, a majority of which has an inner- wear-outerwear look in cotton with minimal lace and heart-pat- Frette, the luxury lingerie, linen and home tern embroidered embellishments, retails for $65 to $300, and $35 accessories brand, wants customers to lounge, linger and to $200, respectively. Ready-to-wear is priced $85 to $500. The explore its newest venture — a modernistic overhaul of U.S. boutiques also sell bras by Princesse Tam Tam, Huit, Myla, its Madison Avenue flagship in Manhattan. Timpa and Le Mystere. After 11 months of renovations, the multilevel town- To commemorate the 30th anniversary, Only Hearts launched house was reopened in late November. The concept by a monthlong campaign in November with a heart motif called “I architect Randall A. Ridless is intended to showcase an [Love] Sharing.” expanded product line of innerwear and home accesso- “The idea was to fight holiday hunger,” said Stuart, who ries for men and women, as well as a new, contemporary teamed up with The Food Bank for New York City and St. vision of the Frette brand. Joseph’s Center in Venice, Calif. The homey ambience, which reflects the warmth — K.M. and refinement of a family townhouse on Manhattan’s Upper East Side, features dark-stained oak flooring and The storefront of Only Hearts on Columbus Avenue in Manhattan. cream-colored wall coverings that compliment plush as- sortments of cashmere and silk innerwear surrounded by decorative pillows, fur throws, and artisan home and travel accessories. Paul Raffin, global chief executive officer of Frette Inc., described the new store at 799 Madison Avenue as “one of the most important Frette stores in the world.” The relaunch of the unit comes after the opening of the first Frette boutique in Boston in October at the Mandarin Oriental Boston Hotel and Residence. The average sales per square foot of the 3,000-square- foot boutique is projected at more than $1,000, similar to Frette’s 10 other U.S. boutiques. The company’s active Paul Raffin and consumer base in the U.S. is around 20,000, Raffin said. Scott Formby ERICKSEN Addressing Frette’s retail strategy, Raffin said, “It rep- on Frette’s new KYLE

resents a significant strategic step toward the enhanced main floor. BY positioning of the brand. While maintaining our bed- centric origins, we are aggressively evolving into a more PHOTOS complex experience, offering many more products to ad- A luxe cashmere and dress our customers’ living occasions.” fur lounge jacket. He added that the luxury boutique is located near other marquee names such as Gucci, Chanel and Van INTIMATE NOTES Cleef & Arpels. GETTING HUGGED: About 200 industry executives attended the 11th “Frette has always appealed to a discerning connois- annual HUG Awards at the Waldorf-Astoria last month to honor designer seur who appreciates artisan quality craftsmanship, Betsey Johnson and Isaac S. Gindi, executive vice president of Century 21 coupled with impeccable design,” Raffin said. “Given the Department Stores, who accepted the award for the independent retailer. difficult times we are living in, our customers find our Both were cited for their community service and contributions to products address their need for less conspicuous, more charities. The HUG (Help Us Give) event is sponsored by the Intimate nurturing forms of luxury.” Apparel Square Club, an organization that raises funds for chronically ill Regarding an expensive renovation during a reces- children at The Rusk Institute of Rehabilitation Medicine at NYU Medical sion, Raffin said, “Stores such as this require one to one- Center in Manhattan. and-a-half years of planning in advance. Clearly, we did “This really means a lot to me,” said Johnson, who did her signature not foresee the current economic circumstances, but we cartwheel to the podium. “Being blessed with a wonderful daughter see Frette as a leader. It’s not based upon conspicuous and two healthy grandchildren, I consumption, but consumership based upon artistry and consider this award an opportunity quality that is enduring. to play a part.…Charitable giving is “We’re a 150-year-old company that’s survived,” he a personal decision, but this is an observed. “Even with today’s economic challenges, our organization which deserves your customers appreciate the quality and the aspect of how careful consideration. I’m going Frette makes them feel. We value very reliable clients to hang out with the kids at the and we service multiple homes.” hospital twice a month, make them Scott Formby, Frette’s creative director, said the com- smile, make them happy.” pany plans to aggressively expand Frette to Wear for men Gindi said, “Day-in and day- and women in the fall. out, the physicians at The Rusk “The next fall collection will be complete,” he said. Institute make a difference, giving “You’re already seeing it in cashmere sleepwear, sleep hope and second chances to at-risk

masks and silk slippers. It currently accounts for less MITRA children. You and I may not be than 5 percent, but we see it growing to 15 to 20 percent doctors; we’re just ordinary people.

over the next two to three years.” ROBERT But together, ordinary people can

Frette was acquired in 2006 for an undisclosed price BY do extraordinary things.” by San Francisco-based JH Partners, a private equity firm The IASC has raised more than

specializing in brand development and marketing. PHOTOS $6 million in the past decade. Betsey Johnson hugs Isaac S. Gindi. WWD, MONDAY, DECEMBER 29, 2008 11 WWD.COM Accessories Report Jewelers Look to Cultivate Indian Market By Katya Foreman The show will feature the Patiala necklace commis- Jewels, everyone was very disappointed as it had no sioned by the Maharaja Bhupinder Singh of Patiala from sparkle,” she said. DESIGNER BAGS, BELTS AND SHOES HAVE ALREADY Cartier in 1928, which originally carried a 234.69-carat Munnu Kasliwai, co-director of the Gem Palace, said, caught on in India, but European jewelry is another story. cushion-cut pale yellow De Beers diamond. “Today [with Indians traveling] there is a lot of brand There were many hurdles even before last month’s While Chaumet, Van Cleef & Arpels, Boucheron and consciousness, but still, when it comes to buying really terrorists attacks in Mumbai that killed more than 160 Harry Winston, among other houses, have shared fruit- important [jewelry] pieces, they like to go traditional. people. Challenged by the country’s steep custom duty, ful relationships with the country’s royalty, the presence They prefer to go to their personal jeweler for one-of- hefty sales tax and a limited retail infrastructure cen- of such brands in India today, more than half a century a-kind pieces.” tered on malls and fancy hotels, Western fi ne jewelry since demise of the British Raj, is relatively insignifi - French jewelry designer Marie-Hélène de Taillac, brands are only just beginning to make inroads into the cant, with many brands convinced that it is premature who spends six months of the year living in India, said world’s second most populous nation. to establish a retail network in the country. Western jewelry just isn’t impressive enough. Despite a sharp rise in the number of high-net-worth Boucheron, which owns three stores each in Russia, “You wouldn’t believe the size of stones I see worn to individuals in India — a 22.7 percent increase in 2007, China and the Middle East, is not yet distributed in India, functions here,” she said. “[Many] think India is the new El according to the latest annual wealth report issued by for example, while Chanel, which since 2005 has opened Dorado but they’re not ready for [branded jewelry]. First Merrill Lynch and Capgemini — the country’s own Place jewelry stores in Dubai, Moscow and Shanghai, with open- of all, they know it is overpriced for what it is and it just Vendôme is potentially decades away, experts said. ings planned for Dubai, Bahrain and Ekaterinburg over the doesn’t work with the clothing they wear. Indians are also “India could become what China is for us today — next year, has not started to distribute jewelry in India. very sharp with money. There’s old money but even those we’re number one there, with 29 stores by the end of the year — but otherwise locally there’s not much to do until they change the tax situation,” said Bernard Fornas, chief executive offi cer of Cartier International. Cartier opened its fi rst store in India last month, in Delhi’s new luxury Emporio mall, feted by the release of a limited edition Santos 100 timepiece that features a glittering Taj Mahal motif on its dial. But for the time being, Cartier’s retail development for jewelry in India stops there. “There’s a lot of money there and they know more about jewelry than any other emerging country,” Fornas said. “They love it and produce it, but we’ll have to wait until all the ingredients that are holding us back change.” In the meantime, the brand has been mounting mar- keting events in India. These have included The Cartier Alternative Elephant Polo Cup, held in Jaipur two years ago and attended by the likes of Jacquetta Wheeler, Olivier Martinez, Her Highness Maharani of Jaipur COQUELLE

Padmini Devi and Bollywood star Preity Zinta. Last ALINE month, in tandem with its opening at Emporio, Cartier BY organized the “Travel with Style Concours” at the Royal Western India Turf Club in Mumbai, featuring rare heri- PHOTO tage automobiles that belonged to Indian royalty. Pink Clockwise from above: Maharajah of Udaipur, Shriji Arvind Singh Floyd’s Nick Mason and cricket legend Imran Khan Mewar, in front of his 1924 Rolls Royce 20hp, Tourer, taken were among those judging the cars. during Cartier’s “Travel with Style Competition” in November; When entering emerging markets “the way I see Cartier’s limited edition Santos 100 Cartier Taj Mahal it, and the same was true for Russia and China, is timepiece; Louis Vuitton’s store in Delhi’s Emporio mall. that there is a kind of learning process where locals start with ready-to-wear then bags and shoes, fol- By year’s end, Tiffany & Co. will open its fi rst store lowed by watches and eventually jewelry,” said Albert in the country, also in Delhi’s Emporio mall. It will be Bensoussan, director of watches and jewelry for Louis operated by the brand’s Indian distributor, Tarz LifeStyle Vuitton, which sells jewelry in two of its four stores in India Ltd. By comparison, the brand operates 17 Tiffany India, based in New Delhi and Mumbai. & Co. stores in Mainland China, Hong Kong and Macau, Vuitton’s location in the Taj Mahal Palace was closed as well as a growing retail network in Russia that in- after the terrorist siege and a temporary location is slat- cludes 10 outlets in department stores and four free- with new money spend wisely and [Indians] know the price ed to open in its place. standing Tiffany & Co. boutiques, operated by Russian of gold and of stones, and their number of carats.” Eager to cultivate relationships with Indian clients on luxury retail distributor Mercury. There are also 22 loca- The sentiment was echoed by Vuitton’s Bensoussan. their home ground — the majority of luxury purchases by tions, including fi ve in-store shops in the Middle East. “Whereas the Chinese and Russians are more status- Indians are made when they are traveling — Vuitton has According to a spokeswoman, Dior’s fi ne jewelry arm minded, with [consumers] choosing brands with strong chosen to absorb sales taxes on high value product. also has “exciting projects” for India, though no further international recognition, Indians are more demanding “One of the ways for us to go beyond tax is to have details were disclosed. in terms of the quality and identity of a product [that’s the same worldwide price on a piece no matter where Aside from taxes, Western brands entering the mar- been instilled] in them for centuries,” he said. you buy it,” said Bensoussan. He added that purchases by ket have to contend with the country’s formidable jew- However, Paris-based luxury consultant Concetta Indians now represent about 5 percent of Louis Vuitton’s elry tradition, nourished principally by the wedding in- Lanciaux said new horizons in India for luxury Western global sales, but the next 10 years should see the country dustry, with local competition forking into major mass jewelry brands may not be so far off. Ironically, one of vault to the fourth or fi fth biggest market for the brand. market jewelry giants and traditional craftsmen, many India’s mass-market jewelry giants, Gitanjali, which has As one of the world’s biggest jewelry markets, the of whom are based at Jaipur’s prestigious Gem Palace. been successfully distributing a line by the Italian jew- sparse representation of Western players in India is The Indian public’s knowledge of jewelry and keen elry brand Morellato in India, could serve as a catalyst, something of a paradox, especially considering the vo- sense of the intrinsic value of gold and gems, still con- she said. racious appetite displayed by the maharajas for Place sidered as a security, further contributes to a wariness Last month, the fi rm visited Paris’ Comité Colbert, a Vendôme’s artisans in the early 20th century. of branded creations. cooperative of 69 luxury French houses, to discuss pos- “Jewelry was central to the status and identity of “Precious stones are integral to India’s wealth. sible collaborations with European jewelry brands. India’s rulers,” said Anna Jackson, curator of the Before mining began in South Africa, all of the world’s “This joint venture [with Morellato] has changed the Victoria & Albert Museum’s upcoming exhibition diamonds came from India,” said the V&A’s Jackson, way that Indians [perceive] Western brands…and as “Maharaja: The Splendour of India’s Royal Courts” that adding that, as opposed to Western cuts that focus on soon as [such brands] have more visibility the govern- will open next October. “The king’s power was articulat- sparkle, India’s traditional fl at-cut gems accentuate the ment will lower taxes. It’s [an issue] that’s being dis- ed through the way he presented himself, and because fl awless quality of a stone. cussed right now,” said Lanciaux, adding that Gitanjali jewelry was such an important part of their lives, they “When the Kohinoor diamond was brought to Britain is also planning to introduce an accessible luxury line. were fascinated with Western jewelry.” [in the 19th century] to be made part of the Crown “That shows that the market is going to be ready.”

A bag from the Eco Ferragamo Ferragamo Finds It’s Easy Being Green collection.

MILAN — Ferragamo has a green heart. process certifi ed by the German Institute SG includes tobacco brown, lemon yellow and The Florentine luxury goods house has cre- — Mark guaranteeing that no environmentally grapefruit pink. ated a line of environmentally friendly bags harmful substances have been used based on Further bolstering the eco theme, the bags for spring called Eco Ferragamo to under- 10 strict parameters. are lined in handwoven hemp, a highly resis- score the company’s core values and its focus In addition to being biodegradable and tant plant that doesn’t require the use of pesti- on global conservation. water resistant, the soft bags have a natural cides and returns nitrogen and other nutrients The bags are crafted with an innovative texture and sheen. to the soil. They will be available in Ferragamo tanning technique that results in metal-free The line includes fi ve day bags, from small stores worldwide starting in February. The colored leathers without pollutants. They are totes to a maxi hobo, which feature Ferragamo’s prices range from $1,190 to $1,890. dyed using tannins derived from tree barks, a signature “Gancino” metal logo. The color wheel — Alessandra Ilari 12 WWD, MONDAY, DECEMBER 29, 2008 WWD.COM BEAUTY BEAT Chicago Looks to Strengthen Fashion Week By Beth Wilson shows at night and industry seminars and shop- By Kilian to Launch 8th Scent, ping events interspersed between them. Chicago’s fledgling fashion week may He believes that setup may improve Chicago’s be poised for a makeover. chances of drawing regional or national buyers Expand Stateside Distribution Looking to strengthen its fall fashion produc- and intensify the entire experience. tion, called Fashion Focus, city organizers are “What hasn’t been working is the momentum,” By Kilian, the niche perfume line launched last awaiting results of a pro bono study conducted Cave said. “It needs to be more dynamic.” year at Bergdorf Goodman in the U.S. and Printemps in Paris, is to show how Chicago’s retail and fashion rank in Gamble said the city is open to new ideas and revving up plans to expand its business in the U.S. the international fashion area. The format changes. “There’s not a lot that The first step: to launch in results should help determine future A look doesn’t go onto the table for next year,” September an eighth scent, details of plans for Fashion Focus, said Jason from she said. which are being kept under wraps for Felger, co-chairman of Mayor Richard Maria Gamble said she would like to see now by the brand’s founder, 36-year- Daley’s Fashion Advisory Council. Pinto’s more designers take ownership of old Kilian Hennessy, heir to the Although the crowds and buzz sur- collection the event by conducting and funding Hennessy cognac business. rounding Fashion Focus have grown, that she their own runway shows, with some There are also plans to expand local and regional buyers have yet to showed city assistance. By Kilian’s existing distribution at seriously invest in the eight-day event, during Fashion Focus raised its profile Saks Fifth Avenue. with little more than a handful of local Fashion this year by including more promi- While Hennessy would not dis- retailers attending the runway shows Focus. nent local designers such as Maria Kilian Hennessy cuss revenue projections, industry at Millennium Park in October. A key Pinto, Michelle Obama’s designer sources estimate that with the new question is whether fashion week, of choice, and inviting Fall Out Boy strategic initiatives, retail sales of the brand could expand from which Daley helped subsidize as part bassist and designer Pete Wentz (who 3 million euros, or $4.2 million at current exchange, in 2008, to 8 of a 2006 city fashion initiative, will re- watched the show alongside then- million euros, or $11.2 million, in 2009. main consumer driven or try to build pregnant wife Ashlee Simpson Wentz) “I had a desire to do a true creation,” said Hennessy, discuss- a stronger industry element. And then to kick off the festivities. ing his choice not to embark on a fragrance effort that involved there’s the matter of whether Chicago Select designers were invited to mass-production of scents. “It should be a creation and not com- has the pull to draw regional or na- show their work for free at the night- mercial for the market. tional buyers and press. ly events, which ranged from Gen “We’re doing perfume the way it was done 100 years ago,” Melissa Gamble, the city’s director Art’s Fresh Faces and an all-student added Hennessy, a Paris native who began in the fragrance busi- of fashion arts and events, who was show called Dress Code to Macy’s ness in 1995 and has worked for Dior, Puig, Gucci and L’Oréal. appointed to the new position as part Designers of Chicago, which featured Outside of Bergdorf ’s, distribution of the Paris-based By of the 2006 initiative, said: “Our goal local designers whose clothing or ac- Kilian brand was expanded in the U.S. during the summer to is to give the designers here a venue cessories are sold at Macy’s on State four Saks Fifth Avenue locations: San Francisco, Beverly Hills, to showcase their work. We know Street or are part of the Chicago Las Vegas and South Coast Plaza in Costa Mesa, Calif., noted there is a huge consumer interest and Fashion Incubator housed at Macy’s. Elisabeth Noel Jones, who was named the firm’s chief executive demand and we have to try to grow The week’s long-term future officer for North America around the time of the Saks expansion. the buyers aspect.” also may be influenced by whether “With Saks, we plan to open three or four doors per season,” Funding issues have prevented a Chicago succeeds in its bid to host Jones said. As yet, additional Saks doors slated to carry the major outreach to buyers, Gamble the 2016 Summer Olympics. Daley brand for spring have not been confirmed. By Kilian is also car- said. This year, the city budgeted $225,000 for has said that the city’s fashion community was a ried at Aedes de Venustas, Lucky Scents and Apothia Fred Segal, Fashion Focus, with the rest of the production key aspect to Chicago’s Olympic initiative. as well as at Holt Renfrew in Canada. costs covered by sponsorship from Lancôme, Felger said the results of the study may also “We plan to launch one scent per year,” Toyota and Midwest spa chain Mario Tricoci. help the city glean more sponsors or attract a pro- said Hennessy, “[and] the brand has been Nick Cave, a member of the Mayor’s Fashion duction company like IMG, which produces New taking off since Elisabeth joined.” Council and instructor at the School of the Art York’s fashion week. He hinted that for By Kilian’s eighth scent, Institute, who produced one of the week’s most Fashion Focus has “evolved so much in five tobacco and wood olfactive accords could play compelling shows, Allure of Couture, said he will years,” Felger said. “The city has done its part. It a part. Givaudan perfumer Calice Becker, who propose that the city concentrate its efforts into has helped build this and it put in resources. At has done five of the seven existing By Kilian one weekend with designers hosting runway shows some point the private sector needs to look and fragrances, will compose number eight, as- throughout the day, the larger city-sponsored say ‘we want to participate.’” sured Hennessy. Existing scents in the line, like Prelude to Love (a September entry), are priced at $115 and $225 for refillable bottles, each 1.7 oz. The more expensive By Kilian’s Takashimaya Trims Outlook After Profits Dip version can be refilled at home. The brand latest scent, also markets six candles and in March will TOKYO — Takashimaya Co. Ltd. saw declining prof- dropping 6.2 percent to 977.8 billion yen, or $10.8 bil- Prelude to Love. introduce travel spray. its and sales in the first nine months of the fiscal lion. The net profit forecast is 43.2 percent lower than There are also 1-liter flacons for $2,500. year and slashed its full-year guidance on ex- the original estimate, while the sales forecast is down While distribution of the brand is world- wide, it is kept tremely weak consumer demand in Japan. 4.7 percent from the original estimate. to an airtight network of a handful of doors in major cities, such Net profit for the nine months ended Nov. 30 Takashimaya, which plans to merge with as 10 Corso Como in Milan and in stores in France, London, dropped 12.8 percent to 10.97 billion yen, or $108.8 Hankyu and Hanshin parent company H2O Belgium and Germany, where the brand was just introduced. million at average exchange rates. Sales fell 4.7 Retailing Corp. sometime over the next three — Matthew W. Evans percent to 722.69 billion yen, or $7.14 billion. years, is one of many struggling retailers in Japan. Takashimaya, which had already issued a profit As reported, department stores here are on track Allergan Wins Approval for Latisse warning in September, said it was forced to cut its to post their 12th consecutive year of declining Allergan Inc. said Friday that it has won approval from the U.S. full-year guidance once more despite focusing on sales, and luxury brands are cutting prices and of- Food and Drug Administration of it Latisse treatment designed “reasonable prices” and holding special events to fering early discounts to lure back shoppers. Last to grow eyelashes “longer, thicker and darker.” The Irvine, Calif.- attract shoppers. month, Japan’s largest department store, Isetan based firm said it will market the treatment in the U.S. by pre- The Japanese retailer said it now expects its net Mitsukoshi Holdings Co. Ltd., issued a profit warn- scription only, beginning in the first quarter, and estimates that profit for the fiscal year ended Feb. 28 to fall 39.6 per- ing for its fiscal year ended March 31. the global business could exceed $500 million annually. cent to 11.3 billion yen, or $125 million. Sales are seen — Koji Hirano FASHION SCOOPS MARQUEE PLAYERS TO RODEO: Recession? What recession? More Access International reportedly oversaw a total fund of $3 with the public prosecutor’s office of Nanterre, a Paris suburb, famous names are set to move into Beverly Hills next year. Tom billion, with $1.4 billion in assets as of Nov. 17. Bettencourt following Bettencourt reportedly giving photographer François- Ford, Judith Leiber and Italian yachting-themed label Paul has a fortune estimated at 17 billion euros, or $23.74 billion Marie Banier gifts of approximately 1 billion euros, or $1.4 & Shark are said to have signed deals to occupy retail space at current exchange. billion, in the form of financial investments and artwork over on the city’s famed Rodeo Drive shopping corridor. A new The affects of the Madoff affair have rippled across Europe, the years (with the rate of gift-giving ramping up recently). Domenico Vacca store is also nearing completion at the north with designer Daniel Hechter, the Recamier family of Louis “What I gave to François-Marie Banier, while significant, is end of the street, which has been dominated by Italian arrivals Vuitton fame and the Principality of Monaco being among the not very high in proportion [to what I have],” Bettencourt of late, such as a soon-to-open Missoni and a relocated Max myriad of entities reportedly impacted. was quoted as saying. Referring to her 30 percent holding Mara store. The three parties either couldn’t be reached or had in the French beauty giant, she explained, “I gave my entire no comment Friday. Meanwhile, no one at the Fondation participation in L’Oréal in bare ownership to my daughter, who BETTENCOURT’S NEW PROFILE: For someone who’s stayed out of Bettencourt Schueller, which Bettencourt founded, could be will have everything after my death. I find this matter quite the limelight for most of her 86 years, Liliane Bettencourt has reached for comment about the news reports, and L’Oréal idiotic, it’s a waste of energy.” Bettencourt added, “I don’t see been something of a media fixture over the past couple of weeks. continued to maintain a low profile Wednesday with the my daughter anymore and don’t desire to.” Most recently, an investment apparently made by the L’Oréal following statement: “This is strictly a private affair for the The family feud and alleged loss through Madoff raises the heiress (who is routinely described as France’s wealthiest Bettencourt family and in no way concerns L’Oréal. We have no question of whether Bettencourt will sell her stake in L’Oréal woman) has taken center stage. further comment on the subject.” once its shareholder agreement expires on April 29. Some Bettencourt reportedly entrusted part of her fortune Bettencourt’s relationship with her daughter has also industry observers believe Nestlé, which has a 28.9 percent to Bernard Madoff through Access International Advisors, recently entered the public domain. As reported in the French share in the beauty firm, would like to take L’Oréal over. according to Bloomberg News. Access International’s co- press over a week ago, Bettencourt said she no longer desires to Meanwhile, L’Oréal stock remained unaffected by a possible founder, Thierry Magnon de la Villehuchet, was found dead see her daughter, Françoise Bettencourt Meyers. That’s because Bettencourt-Madoff link Wednesday, when it closed up 1.21 in an apparent suicide on Tuesday in his Manhattan office. her daughter lodged a complaint for “exploitation of weakness” percent to 62.11 euros, or $86.73. WWD, monday, decembEr 29, 2008 13 WWD.COM Financial For full daily stock changes, see WWD.com. Baird Weighs In on M&A’s Weekly Stocks 52-Week Volume Amt 52-Week Volume Amt By Arnold J. Karr High Low Companies p/E Last Change High Low Companies p/E Last Change Merger and acquisition activity remained 82.38 13.66 Abercrombie & Fitch (ANF) 4.7 1506518 22.26 0.30 51.24 8.02 J. Crew (JCG) 7.9 370971 11.64 0.14 muted in November, leaving the value of deals execut- 27.44 9.04 Acadia (AKR) 11.4 147648 14.07 0.01 51.42 13.95 J.C. Penney (JCP) 5.2 1905666 18.66 0.24 ed so far this year in the consumer products sector 3.78 0.47 Aeffe * (AEF:MI) - 226441 0.67 0.00 7.70 2.50 Jaclyn (JCLY) - 600 4.94 -0.03 down almost two-thirds, a new report said. 37.40 12.52 Aeropostale (ARO) 7.7 721927 16.52 0.49 1.67 0.24 Joe’s Jeans (JOEZ) 3.6 22136 0.36 0.00 In its monthly analysis of middle-market M&A trans- 29.40 19.32 Alberto Culver (ACV) 10.2 224103 23.56 0.31 22.12 2.34 Jones Apparel (JNY) - 5534390 5.62 1.73 actions, the investment banking department of Robert W. Baird & Co. Inc. said there were 10 deals executed in 15.28 1.82 American Apparel (APP) 5.3 177598 1.82 -0.04 50.58 15.38 Jos. A. Bank (JOSB) 8.9 206769 26.38 0.10 November, although eight of them were for undisclosed 23.84 6.98 American Eagle Outfitters (AEO) 6.8 3099556 9.12 -0.08 19.74 5.61 Kenneth Cole (KCP) - 99035 5.79 0.10 prices. The two reported acquisitions totaled $57 million 29.23 3.74 Ann Taylor (ANN) 8.7 551866 5.69 0.27 47.80 9.56 Kimco Realty (KIM) 14.8 2610295 18.50 -0.50 in value, 88.1 percent below the $482 million changing 420.00 112.50 Asos * (ASC:L) 29.1 154039 249.75 0.00 56.00 24.28 Kohl’s (KSS) 10.9 1697380 33.36 -0.18 hands for the six disclosed in November 2007. Including 45.34 17.45 Avon (AVP) 17.7 1120488 22.68 0.05 20.76 9.93 K-Swiss (KSWS) 11.9 66204 11.72 0.14 sales for which the amounts weren’t disclosed, there 13.83 4.57 Bebe (BEBE) 11.6 204915 7.55 0.00 18.98 9.47 LaCrosse Footwear (BOOT) 9.6 900 11.20 0.17 were 13 transactions in the year-ago month. 56.72 32.32 Beiersdorf * (BEI:HM) 18.4 0 40.48 -0.93 22.16 6.90 Limited Brands (LTD) 5.7 1326013 9.50 0.24 During the first 11 months of 2008, there were 162 13.30 4.80 Benetton Group * (BEN:MI) 7.3 201630 6.10 0.00 22.78 1.46 Liz Claiborne (LIZ) - 1462958 2.52 0.52 acquisitions, 53 of them with disclosed values, down 6.15 0.30 Birks & Mayors (BMJ) 0.5 4463 0.36 -0.14 7.05 0.35 LJ Intl (JADE) 10.1 64104 0.82 0.01 from 183 and 63 with disclosed values in the compa- 44.29 26.36 BJs (BJ) 15.2 554975 32.58 -0.38 99.97 53.32 L’Oreal * (OR:PA) 13.5 191571 62.11 0.00 rable period during 2007. The value of the disclosed 0.29 0.07 Blue (BLHI) - 9830 0.08 0.00 50.00 6.82 Lululemon (LULU) 12.2 360585 7.40 -0.28 deals dropped 65.6 percent to $11.94 billion from $34.68 billion, and the average price declined 59.1 per- 8.10 0.55 Bluefly (BFLY) - 2750 0.81 -0.04 26.66 12.51 Luxottica * (LUX:MI) 13.0 510769 12.67 0.00 cent to $225.2 million from $550.5 million a year ago. 10.90 0.76 Bon-Ton (BONT) - 52693 1.02 -0.04 89.36 38.10 LVMH * (MC:PA) 10.5 366580 46.00 0.00 Baird characterized November’s levels as an in- 18.44 4.34 Brown Shoe (BWS) 9.6 207224 7.89 0.20 76.50 8.31 Macerich (MAC) 9.2 1519690 20.27 0.39 crease over the “very slow months of September and 44.57 13.57 Buckle (BKE) 9.8 568274 21.62 0.75 28.47 5.07 Macy’s Inc. (M) 5.5 2729208 8.60 -0.22 October,” based principally on a lower level of decrease 11.48 4.25 Bulgari * (BUL:MI) 10.1 408958 4.35 0.00 17.59 6.25 Maidenform (MFB) 7.0 21172 9.22 0.61 last month. The value of reported deals in September 686.50 154.75 Burberry * (BRBY:L) 7.0 565356 232.75 0.00 669.00 191.90 Marks & Spencer * (MKS:L) 5.3 1227374 213.25 0.00 was $16 million, dropping 96.1 percent from the year- 16.29 4.18 Cabela’s (CAB) 5.2 262387 6.50 0.02 28.50 8.33 Men’s Wearhouse (MW) 9.5 392326 13.61 0.39 ago month, and those closing in October totaled $17 mil- 14.86 1.41 Cache (CACH) 10.3 85025 1.89 -0.07 27.88 5.94 Movado (MOV) 4.7 308081 8.70 0.71 lion, falling 99.5 percent from October 2007. 54.20 24.16 Carrefour * (CA:PA) 10.0 1290651 26.70 0.00 25.00 10.03 National Retail Prop. (NNN) 10.0 371943 16.62 -0.02 “From Baird’s discussions with consumer products 22.39 11.94 Carter (CRI) 13.7 354039 18.20 0.24 12.12 0.82 New York & Co. (NWY) 8.8 210449 2.15 0.03 suppliers across all categories, the major theme over 5.38 0.35 Casual Male (CMRG) - 525554 0.48 0.04 5.38 0.07 NexCen (NEXC) - 1635025 0.07 0.00 the past three months is cash conservation and, very often, the inability to make acquisitions due to the 19.38 11.30 Cato (CTR) 14.0 61236 14.09 0.33 70.60 42.68 Nike (NKE) 13.2 1229824 49.76 0.63 lack of debt availability in the market,” the report said. 27.55 2.53 CBL (CBL) 16.2 2636728 7.51 -0.61 2.33 0.03 Nitches (NICH) - 16000 0.28 0.00 “Numerous strategic consolidators note that acquisi- 9.92 3.01 CCA (CAW) 6.4 7662 3.62 0.02 40.59 6.61 Nordstrom (JWN) 5.0 1340210 11.91 -0.15 tion targets are plentiful [particularly small, struggling 2.35 0.18 Charles & Colvard (CTHR) - 31247 0.22 0.01 9.10 5.95 Orchids Paper (TIS) 13.0 11900 7.70 0.15 suppliers] but buyer balance sheets preclude taking 20.61 3.98 Charlotte Russe (CHIC) 7.8 99506 6.29 0.11 29.88 4.48 Oxford (OXM) 7.8 93760 8.16 0.39 advantage of the available M&A opportunities. 7.00 0.57 Charming Shoppes (CHRS) - 472752 2.41 0.17 14.89 1.01 Pacific Sunwear (PSUN) - 188850 1.67 -0.04 “That being said, smaller [sub-$100 million] acquisitions 82.17 57.10 Chattem (CHTT) 21.0 77204 68.24 -0.83 7.15 2.42 Parlux Fragrances (PARL) 35.5 45810 2.71 -0.13 that require less cash and involve much less risk than larg- 36.97 11.55 Cherokee (CHKE) 9.8 18180 16.52 0.18 30.64 2.21 Penn Real Estate (PEI) - 428949 7.92 0.07 er, transformational transactions are still occurring.” 10.92 1.72 Chico’s (CHS) - 1092232 4.10 0.15 29.27 3.40 Perry Ellis (PERY) 4.4 63902 5.84 0.45 Among the November deals cited was Quiksilver 43.40 14.92 Children’s Place (PLCE) - 131946 20.63 -0.05 47.94 13.04 Phillips-Van Heusen (PVH) 6.1 235223 19.48 0.75 Inc.’s sale of its Rossignol ski business to Chartreuse & Montblanc for 40 million euros, or $50.9 million. 13.58 2.46 Christopher & Banks (CBK) 12.3 143780 4.88 -0.04 2.37 0.23 Phoenix Footwear (PXG) - 21190 0.24 -0.01 The original purchase agreement, reached in August, 34.47 19.51 Cintas (CTAS) 10.4 565897 21.82 0.04 82.02 31.22 Polo Ralph Lauren (RL) 9.3 419939 43.55 0.78 called for a 100 million euro selling price but was dis- 28.12 7.01 Citi Trends (CTRN) 11.8 63707 13.67 0.70 141.50 31.06 PPR * (PP:PA) 5.1 149171 44.92 0.00 counted because of the worldwide credit crunch. Upon 37.64 13.19 Coach (COH) 9.2 1389729 20.36 0.00 33.59 10.35 PriceSmart (PSMT) 14.8 34011 19.47 0.18 closing the transaction, Quiksilver retained Morgan 8.31 0.91 Coldwater Creek (CWTR) - 153420 2.79 0.01 10.67 0.80 Quiksilver (ZQK) - 747252 1.67 0.09 Stanley to aid it in the search for additional financing. 81.98 54.36 Colgate Palmolive (CL) 19.4 2751925 68.10 0.48 8.84 4.85 R.G. Barry (DFZ) 7.4 17750 4.99 0.12 21.00 3.85 Collective Brands (PSS) 21.0 471221 10.52 0.46 24.28 3.45 Ramco-Gershenson (RPT) 3.8 81012 5.79 0.64 49.49 26.07 Columbia Sportswear (COLM) 9.7 45127 34.46 1.03 73.55 23.36 Regency Centers (REG) 19.0 808522 44.18 -0.22 IN BRIEF 75.23 43.88 Costco (COST) 17.8 1218121 51.47 -0.22 7.46 0.90 Retail Ventures (RVI) 2.2 224198 3.20 0.20 • JONES CUTS CREDIT FACILITY: Shares of Jones Apparel 40.35 0.79 Crocs (CROX) - 558328 1.21 -0.01 14.85 0.67 Revlon (REV) 3.1 51569 6.66 0.43 Group Inc. skyrocketed $1.73, or 44.5 percent, to close 0.18 0.02 Cygne Designs (CYDS) - 2000 0.03 0.00 83.00 16.88 Richemont * (CFR:VX) 4.6 1107171 19.89 0.00 at $5.62 Friday after the firm reported that it had cut its revolving credit line by more than half in a move to pro- 166.50 46.27 Deckers Outdoor (DECK) 14.5 162273 77.28 1.65 41.56 21.23 Ross Stores (ROST) 12.8 568549 29.21 0.25 vide greater flexibility in its business. Jones eliminated a 3.50 1.50 Delia’s (DLIA) 178.0 66532 1.79 0.01 3.72 0.44 Safilo * (SFL:MI) 6.3 104732 0.57 0.00 $500 million facility set to mature next June and reduced 9.34 2.09 Delta Apparel (DLA) 17.5 800 3.45 -0.05 21.31 2.67 Saks (SKS) - 752084 3.82 -0.07 to $600 million a $750 million credit line scheduled to 20.21 5.85 Destination Maternity (DEST) - 8300 5.85 -0.81 114.00 26.80 Sears (SHLD) 18.8 422108 37.04 0.32 mature in May 2010. The firm said that unspecified fees 45.66 1.73 Developers Diversified (DDR) 4.3 1350774 4.38 -0.03 106.43 33.78 Simon Properties (SPG) 29.7 1996700 51.96 0.65 and interest rates under the surviving facility increased 23.11 2.50 Dillard’s (DDS) - 1003148 3.44 -0.18 25.20 9.25 Skechers (SKX) 6.0 333748 11.83 0.58 to current market rates and that Jones will grant “cer- 17.93 6.16 Dress Barn (DBRN) 8.6 230036 10.20 0.08 3.37 0.15 Sport-Haley (SPOR) - 9950 0.21 -0.01 tain security for borrowings” under the revolver and 20.69 7.30 DSW (DSW) 14.6 123856 11.75 0.05 6.71 0.99 Stein Mart (SMRT) - 139683 1.04 -0.03 pay “customary” fees for the modifications. J.P. Morgan 33.00 8.50 Duckwall-Alco (DUCK) - 3905 10.81 0.41 29.00 13.37 Steve Madden (SHOO) 13.9 93175 19.14 -0.30 Securities and Citigroup Global Markets Inc. were joint 8.72 0.30 Eddie Bauer (EBHI) - 265559 0.49 0.01 76.50 23.20 Swatch Group * (UHRN:SW) - 0 27.80 0.00 lead arrangers in the revision. Jones owns Jones New York, Nine West, Anne Klein and Gloria Vanderbilt. 21.79 10.55 Elizabeth Arden (RDEN) 55.1 63898 10.99 -0.03 17.86 7.30 Syms (SYMS) 180.0 1847 8.38 -0.62 54.75 24.24 Estee Lauder (EL) 12.0 680354 29.52 0.01 17.97 1.19 Talbots (TLB) - 115132 2.34 -0.15 32.50 14.62 Family Dollar (FDO) 14.4 1177599 24.75 0.84 10.62 1.50 Tandy Brands (TBAC) - 10500 1.50 0.00 WEEKLY 12.43 1.48 Finish Line (FINL) - 187342 5.69 0.11 3.67 1.70 Tandy Leather Factory (TLF) 7.3 6135 1.80 -0.09 CHANGE 43.80 11.51 Fossil (FOSL) 7.4 232413 16.09 0.68 46.30 24.62 Tanger Factory Outlet (SKT) 50.5 525702 37.29 -0.08 WWD 4.25 0.16 Fredericks of Hollywood (FOH) - 67901 0.25 0.01 59.55 25.60 Target (TGT) 9.9 3192569 32.24 -0.11 ENDING ( DECEMber 26 ) 15.91 7.71 Freds (FRED) 39.8 136216 9.83 -0.12 1.23 0.21 Tarrant Apparel (TAGS) - 1455 0.54 0.15 % INDEX 196.75 30.00 French Connection * (FCCN:L) 155.0 1650 48.50 0.00 92.35 17.47 Taubman (TCO) 39.6 417845 26.58 0.06 21.89 9.41 Gap (GPS) 9.5 2357742 12.97 0.00 5.76 0.30 Tefron (TFR) - 0 0.40 0.00 Gainers Change Composite 44.23 0.24 General Growth (GGP) 5.0 6276931 1.29 0.19 49.98 16.75 Tiffany & Co. (TIF) 9.5 826535 22.42 0.08 Jones Apparel 44.47 39.38 10.37 Genesco (GCO) 3.5 202823 17.10 -1.11 19.41 7.19 Timberland (TBL) 12.2 97650 11.00 0.18 Tarrant Apparel 36.71 722.58 23.00 4.77 G-III Apparel (GIII) 5.8 160706 6.37 0.07 37.52 17.80 TJX Cos. (TJX) 9.5 1405894 20.04 0.24 Liz Claiborne 26.00 42.74 7.76 Gildan Activewear (GIL) 9.1 279712 10.23 0.03 64.48 29.12 Tod’s * (TOD:MI) 11.2 7344 30.70 0.00 General Growth 17.27 15.00 0.75 Glimcher (GRT) - 344506 3.40 0.13 31.82 9.83 True Religion (TRLG) 6.8 268469 12.58 1.15 40.90 18.73 G&K (GKSR) 11.2 78970 19.54 -0.37 33.73 2.07 Tween Brands (TWB) 6.6 125595 5.16 0.09 Ramco-Gershenson 12:43 0.96 0.14 Gottschalks (GOTT) - 50789 0.20 -0.05 47.16 16.05 Under Armour (UA) 24.5 419111 22.72 -0.30 45.21 10.26 Guess (GES) 6.0 996386 14.92 0.60 5.43 1.80 Unifi (UFI) - 209315 2.57 -0.02 Decliners Change 47.69 16.48 Gymboree (GYMB) 7.8 444858 25.02 0.71 38.25 20.22 Unilever (UL) - 545416 22.83 0.11 Birks & Mayors -28.00 14.75 2.05 Hampshire (HAMP) - 0 3.00 0.00 38.40 12.33 Urban Outfitters (URBN) 11.8 1290834 14.65 0.05 Gottschalks -20.00 37.73 8.54 Hanesbrands (HBI) 7.5 381683 12.62 0.23 84.60 38.22 VF Corp. (VFC) 9.1 484400 54.45 1.38 Destination Maternity -12.16 0.30 0.08 Hartmarx (HTMX) - 72291 0.12 0.01 28.88 6.39 Volcom (VLCM) 6.8 75326 10.83 0.23 433.50 239.50 Hennes & Mauritz * (HMB:ST) 17.3 1771062 311.50 0.00 63.85 43.11 Wal-Mart (WMT) 16.1 6373445 55.35 -0.09 CBL -7.51 131.89 59.42 Hermes * (RMS:PA) 36.9 14213 100.02 0.00 53.89 12.22 Warnaco (WRC) 10.0 243071 18.86 0.49 Syms -6.89 +2.16 8.98 3.90 Hot Topic (HOTT) 21.3 416729 8.38 -0.14 40.00 8.27 Weingarten (WRI) 9.6 708995 20.57 -0.04 * Editor’s note: European stocks are quoted in the currency of 24.00 13.27 IAC Interactive (IACI) - 1035864 15.45 -0.33 5.54 1.81 Wet Seal (WTSLA) 6.8 291831 2.58 0.00 their principal exchanges. Shares on the London Stock Exchange 22.80 5.11 Iconix (ICON) 7.4 127411 8.90 0.21 41.99 23.82 Weyco (WEYS) 18.4 8502 32.45 -0.73 are quoted in pence, Richemont and The Swatch Group are quot- 53.90 23.29 Inditex * (ITX:MC) 15.5 1041755 31.43 0.00 31.21 16.24 Wolverine (WWW) 10.2 244811 20.73 0.59 ed in Swiss francs and Hennes & Mauritz is quoted in Swedish 19.96 5.04 Inter Parfums (IPAR) 7.6 36260 6.97 0.39 30.89 2.93 Zale (ZLC) - 442098 3.33 0.26 kronor. All other European stocks are in euros. 1.96 0.17 IT Holding * (ITH:MI) - 1804988 0.18 0.00 28.84 4.50 Zumiez (ZUMZ) 9.8 113482 7.72 -0.01 14 WWD, MONDAY, DECEMBER 29, 2008 WWD.COM MEMO PAD THE LADIES WHO SEARCH: Though most of the media is retrenching under economic pressures, the Internet still remains a potential growth area, thanks to its relatively low start-up costs and immediate delivery to consumers. Among the new offerings, Web sites targeted to women are growing in numbers, serving up content across a wide swath of subjects and age groups. Slate.com will expand its popular blog, The XX Factor, into its own site in the spring. Elizabeth Spiers, founder of Dead Horse Media and a contributor to Fortune magazine, is developing an online women’s magazine she pegged as “Maxim for women.” The sites will join TheFrisky.com, a Web site for 18- to 34-year-olds covering love and relationships; Yahoo’s women’s lifestyle portal Shine.com, and Wowowow.com, a site targeting women over 40. That growth comes as more women than men are online these days: According to eMarketer, there are a projected 100 million female Internet users in the U.S., or 52 percent of the general population, compared with 94 million males online (48 percent of Americans). But, unlike women’s sites of yore that functioned more as broad information portals, newer sites are more content specific, with unique voices and personalities to draw Brandon s Some of the founders of Wowowow: Mary Wells, readers by their passion points. Fragmentation, albeit Holley, Peggy Noonan, Lesley Stahl, Liz Smith and Joni Evans. while maintaining a large enough audience to drive editor women today don’t talk about love and relationships scale, helps advertisers focus on their core consumer. in chief just through their own experiences. It comes through “The thing that makes the Internet so attractive to of Yahoo watching movies, reading about celebrities, dealing advertisers is you can slice the target segmentations Shine. with our female health issues, politics or government a lot of different ways and do it in a precise manner,” issues. I wanted to find a way to combine that into said Christopher Actis, who, as digital director for media an all new space.” agency Mediavest, manages media strategy for Wal- The site is on track to gather about 700,000 visitors Mart. While some have attracted a substantial ad base, in December, according to internal estimates, though given that a banner ad is cheaper point of entry than Turner has not sold any advertising on the site, opting to an ad page in a magazine, few Web sites are operating let the site grow in scale before packaging it to clients. with substantial profits. Turner will sell advertising in 2009 and is looking for For the 25- to 50-year-old political junkie, there’s more opportunities to launch other Web sites covering The XX Factor, a broadening of the popular politics personal style, pop culture and fitness for women. and culture Slate.com blog edited by Hanna Rosin, Wowowow.com, the site launched by a band of “old Meghan O’Rourke and Emily Bazelon this year. “It’s media” female journalists and writers including Joni been this whip smart, fun conversation that everyone’s Evans, Liz Smith, Lesley Stahl, Joan Juliet Buck and Whoopi dying to participate in,” said Jacob Weisberg, editor in Goldberg, has gathered a strong following among women chief of The Slate Group. As a blog, The XX Factor has over 40 — nearly 600,000 unique visitors in November accumulated 1 million page views a month, he said. and 4.5 million page views, according to their estimates. The new site will include fresh daily content and more s The homepage of TheFrisky.com. Tiffany, Sony, Citi, Ralph Lauren and Jones New York all contributors, including more user-generated content. have advertised on the site this year. “Because we are a The XX Factor recently hired Jessica Gross, a former well-educated and wealthier group, this is a targeted area editor of Jezebel.com, as its managing editor. where women come to….It’s a demographic that serves “In my mind, there’s always been this idea out advertisers well,” explained Evans. Next year, the site will there of, ‘Why hasn’t there been a women’s magazine introduce more offline events with the founding editors, equivalent of Esquire of the Sixties and Seventies?’” and more social networking functions to bring in voices said The XX Factor’s Rosin. “We’re never going to from its commenters. be a long form narrative magazine. But it can take Ironically, Yahoo Shine is the mother of the newer the subjects that women’s magazines cover” — female sites. The site draws from Yahoo’s network of friendships, fashion, consumerism, work issues, 40 million female users and brings in readers from health — “and apply the same rigor and intellect that a network of partner sites, including magazine dot- you might apply to a books piece.” Slate has not sold coms of Rodale, Hearst Magazines and Condé Nast advertising on the blog previously, but will sell ads Publications, and other independent bloggers that through its Slate Group next year. provide content to Shine. While editor Brandon Holley For younger readers into lighter fare, TheFrisky. and her team create daily original content along with com is a punchy, irreverent site covering relationships, information from its partner sites, Shine’s network of sex and health that launched in March out of Turner’s users now makes up 80 percent of the new content new products division. The network, which also owns on the site. That’s 400 blogs created a day and 2,000 popular Web sites including Thesmokinggun.com, comments posted by Shine’s 12 million unique nascar.com and cnnmoney.com, is looking to build visitors as of November, according to Comscore/Media out sites that can serve certain large demographics it Metrix. Such an engaged audience helps Shine evolve already draws through their television programming. its content in real time to the changing interests of its “The 18-to-34 demo is a key demo for Turner,” said readers. Holley, former editor in chief of Jane, pointed Guhan Selvaretnam, Turner’s new products group lead, s The Yahoo Shine homepage. to several examples of Shine.com creating stories after who also noted that the network attracts the largest 18-to-34 female audience during prime reading commenters’ concerns about relationships, depression or money issues. “As an time of all the cable networks. “Think about ‘Sex and the City’ 12 years ago, and its brand editor, it’s a great next step for me because it’s such a deeper engagement with the reader,” promise of authenticity. The sense was that there was this opening in the market to deliver Holley said. “What we can do at Yahoo that I could never do at a magazine is create this that same authenticity to females 18 to 34 in a different voice.” community aspect. We found that sometimes our readers want to hear what an editor at The Frisky includes contributions from a team of about a dozen contributors (some Harper’s Bazaar is saying and sometimes they want to hear from their peers.” are former Jane magazine editors), plus reader essays and blog posts. “My concept Next year, the site will add more video content and integrate Yahoo’s food content, which will was thinking about the way women talk about relationships,” said Frisky editor Amelia help draw in more consumer packaged goods producers and large retailers, such as Wal-Mart. McDonell-Parry. “We have a sit down at brunch about the date the night before. But — Stephanie D. Smith American Apparel in Legal Skirmish With Former European Head By David Lipke “We are not sitting back any more; we are taking a Apparel nepotism rules, and paid her unwarranted bo- proactive stance,” said Joyce Crucillo, general counsel nuses, in an effort to enrich himself. American Apparel is in a legal battle with at American Apparel. Brake’s lawyer is Keith Fink, who also is repre- its former head of European operations. Brake joined American Apparel in 2002 when it senting three other plaintiffs in Los Angeles County The Los Angeles-based company has been hit by an- was still a fairly small, privately held company, and Superior Court against American Apparel and Charney: other lawsuit, filed by Bernhard-Axel Ingo Brake, who he moved to Germany in 2003 to start up a new divi- Mary Nelson, a former sales representative who filed alleges he was fired after complaining about the com- sion there, American Apparel Deutschland GmbH. He a wrongful termination and sexual harassment suit in pany’s employment practices in Europe. used a headquarters in Düsseldorf to build American 2005; Robert Hernandez, a former IT employee who In the complaint filed Tuesday in Los Angeles County Apparel’s operations throughout Europe. However, he filed suit on Nov. 7, alleging he was fired after refusing Superior Court, Brake also contends he is owed more than said he became concerned about alleged employment to pad inventory figures, and Nikki Yang, a former cus- $1 million in bonuses and commissions that were verbally practices encouraged by Charney, such as paying em- tom order manager who filed suit on Dec. 1, charging promised to him by Dov Charney, founder and chief execu- ployees under the table to avoid taxes. He also alleges she was subjected to a hostile work environment, in ad- tive officer of Los Angeles-based American Apparel Inc. female employees favored by Charney misappropriated dition to being owed company stock. Brake is suing for wrongful termination, breach of company funds and wasted company resources, to the American Apparel has filed suit, also on Dec. 1, oral contract and infliction of emotional distress, among detriment of American Apparel’s shareholders. against Yang for unjust enrichment and fraud. other charges. In its own suit, American Apparel charges that Brake Other cases pending against American Apparel and This is the latest in a string of high-profile lawsuits hired his mistress, Irene Cuppone, for a high-level job Charney include an employment discrimination case against American Apparel and Charney. The company managing the company’s Switzerland business, although filed in Los Angeles this past summer by a former public has countered, with a suit of its own against Brake in a she did not fulfill the duties of that position. In addition, relations employee, Jeneleen Floyd, and a case now in German court, charging that the former executive was the company alleges Brake hired his daughter, Annina arbitration filed by former employee Chris Renfro, who fired because he embezzled funds from the company. Brake, to work in a company store, violating American claims he was subjected to a racist work environment. WWD, MONDAY, DECEMBER 29, 2008 15 WWD.COM/CLASSIFIEDS Professional Services For more career opportunities log on to fashioncareers.com. Call 212.630.3963 or e-mail [email protected] to advertise.

DOMESTIC PRODUCTION AVAILABLE SHIRTS - TROUSERS - JEANS POLKTON MANUFACTURING CO., INC. MARSHVILLE, NORTH CAROLINA [email protected] 1-800-445-0044 Monday-Friday 8:00 am - 4:30 pm

WWD.COM/CLASSIFIEDS

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

Production Manager 80-90K. Current Premier Wholesales Company seeks A/R exp in Junior sportswear in developing Showrooms & Lofts Charge back Specialist SPEC TECH - KIDS $50K BWAY 7TH AVE SIDE STREETS production in Mexico 807 reqd. Mdtn co. [email protected] 973-564-9236 Growing co seeks exp’d spec tech for Great ’New’ Office Space Avail •Work w/ factor girls/boys spts - Inf - tods ADAMS & CO. 212-679-5500 EXCESS INVENTORY BUYER •Research of charge backs A.D. FORMAN ASSOC. Immediate Cash/No Inventory Too Large A/P Manager •Monthly A/R reports RETAIL ANALYST 450 7th AVE (AGCY) 212-268-6123 No Hassle/Integrity Driven/Closeouts Needed •Issuing of credits offsetting credits & Fashion Apparel Company in Culver 901-338-6364 www.fusioninternational.net unapplied monies to accounts City is looking for an experienced •Daily processing of A/P transactions Retail Analyst with at least five years [email protected] to ensure that municipal finances are •Working w/ the sales team to resolve chargeback issues. of analytical, statistical, and business maintained in an accurate manner. experience with major department 33rd-57th St West-All Sizes •Receive and verify invoices and Bachelor degree in related field stores. Bachelors Degree in Market- TECHNICAL DESIGNER requisitions for goods, services, royal- ing, Accounting or Finance preferred. Intimate apparel company seeks a Tech Menswear Showrooms ties , expense reports 2-5 years experience D. Levy Adams & Co. #212-679-5500 Must have retail experience Interested applicants who meet all of Designer. Min 2yrs exp reqd. Intimates •Verify that transactions comply with the above requirements should for- exp a plus. [email protected] financial policies and procedures ward a resume and cover letter to: Spaces •Enter invoices for payment Written & communication skills, strong [email protected] Showroom /Office for Rent •Maintain listing of accounts payable Excel exp., Knowledge of Quick Books. 389 Fifth Ave – 500 sf. / $1500 mon •Prepare the company’s 1099 and 1096 COMMERCIAL Slat walled w/shelves & desks for IRS Candidate must have aptitude to be SEQUOIA PARIS Call Peter: 212-683-1900 part of a team, org skills, & ability to Global leader in Contemp handbags & REAL ESTATE REQUIREMENTS handle multiple demands, time mgmt small leather seeks independent road skills & communication skills. oriented reps. Several territories avail- "WISHING YOU A STYLISH NEW YEAR!!” •Knowledge of QuickBooks is a must able. Must have contemporary account •Retail Exp Send resume to [email protected] following. Commission based. Must have [email protected] •Degree in Accounting, or related strong references. Showroom a plus. work exp Contact John Voisinet [email protected] www.fourthfloorfashion.com •Excellent Computer Skills Stop by Javits Ctr. Jan 5-7, Booth #7752 send resumes to [email protected] ATTENTION CLASSIFIED ADVERTISERS PATTERNS, SAMPLES, PRODUCTION ASSISTANT PRODUCTIONS Junior Product Manager/Merchandiser Womens Sportswear Co. specializing Due to production considerations during the holiday season, All lines, Any styles. Fine Fast Service. Kids accessory company seeking can- in Jr, Missy and Plus tops seeking or- Call Sherry 212-719-0622. didate with at least 2-3 years experi- ganized, detail oriented individual Wed, 12/31 at 11am will be the deadline for the ence in merchandise development. Po- with excellent communication skills. sition will be located outside of Den- Must have technical knowledge in gar- Monday, WWD 1/05 issue PATTERNS, SAMPLES, ver. Fax resume to 303-576-5457 or ment measuring, a good color sense Email in Word format to: and knowledge of basic production PRODUCTIONS [email protected] procedures. Entry Level. Please send WWD will not publish 1/01 and 1/02 Full service shop to the trade. resume to: [email protected] Fine fast work. 212-869-2699. Thank you for your cooperation. GIANNONI GIOVANNI BY PHOTO TAKE CENTER STAGE IN PRINT & ONLINE FEBRUARY 13-MARCH 31 FALL ’09 COLLECTION SEASON FOR MORE INFORMATION ON ADVERTISING, CONTACT CHRISTINE GUILFOYLE, PUBLISHER, AT 212-630-4737, NEW YORK | LONDON | MILAN | PARIS OR YOUR WWD SALES REPRESENTATIVE.