NEWSPAPER 2ND CLASS $2.99 VOLUME 71, NUMBER 10 FEBRUARY 27–MARCH 5, 2015 THE VOICE OF THE INDUSTRY FOR 70 YEARS Ports Still Clogged With Waiting Ships By Deborah Belgum Senior Editor Hammering out a tentative contract with longshore work- ers took nine months of negotiations. Now importers are hop- ing it doesn’t take as long to clear the backlog of merchandise floating on the water outside the country’s largest ports, in Los Angeles and Long Beach. The number of cargo-container ships parked beyond the breakwater off the Port of Los Angeles and the Port of Long Beach reached a recent all-time high of 27 vessels on Feb. 23. That was three days after a tentative contract agreement was announced between the International Longshore and Ware- house Union and the Pacific Maritime Association—rep- resenting the shipping lines and port terminal operators who employ them. By Feb. 26 the number of waiting cargo container ships was still at 27. ➥ Port page 2 FORD IN LA: Designer Tom Ford drew a high-profile crowd to his Autumn/Winter 2015 Womenswear runway show, held Feb. 20 at Milk Studios in Los Angeles. Many attendees, such as Jennifer Lopez, American Apparel Fires pictured above, wore pieces from the designer’s recent collections. Creative Director and Adds CHARLEY GALLAY/GETTY Two New Executives By Deborah Belgum Senior Editor A Solar-Powered Factory Helps Bella+Canvas Nearly two months after Paula Schneider took over as the new head of American Apparel, she has fired the com- pany’s longtime creative director, Iris Alonzo. Maintain Domestic Production This is the second firing for Alonzo, who was dismissed By Julie Gallego Contributing Writer that time there were really no greater companies than Gap, last June allegedly for being affiliated with ousted Ameri- Levi’s or Esprit. They were all in San Francisco. There was can Apparel founder and former CEO Dov Charney. Bella+Canvas started out as a company dedicated to mak- no greater inspiration for us,” Harris said. But Alonzo was rehired in October to retake a job she ing T-shirts in the United States—a business model that hasn’t Today, Bella+Canvas has more than 400,000 square feet had held for more than a decade. changed much even as other manufacturers have headed over- of manufacturing space and 800 employees in Commerce, According to Alonzo’s attorney, Keith Fink, the creative seas. Calif., an industrial area southeast of downtown Los Angeles. director was fired after she retained him as her lawyer to The knitwear maker was founded in 1992 by high school In 2008, Bella+Canvas—using state subsidies—got rid of recuperate benefits and money she believes American Ap- (and still) best friends Danny Harris and Marco DeGeorge. its lightbulbs and converted to a solar-powered manufactur- parel owed her. The pair, who grew up in Los Gatos, a suburb of San Fran- ing facility that includes bi-weekly yoga classes and workout cisco, launched the company as a private label. ➥ American Apparel page 2 “We were very interested in fashion and design, and at ➥ Bella+Canvas page 5 INSIDE: OBITUARY Henry T. Segerstrom, Founder of South Coast Plaza, 91 By Andrew Asch Retail Editor as well. Henry T. Segerstrom, developer of South Coast Plaza, the Currently, South Coast Plaza is the address of retailers rang- retail center that brought Rodeo Drive luxury to Orange Coun- ing from heritage brands Louis Vuitton, Prada and Chanel to ty, Calif., died Feb. 20 at his home in Newport Beach, Calif., department stores Nordstrom and Saks Fifth Avenue and fast- 4 5 after a brief illness. The death was announced by C.J. Seger- fashion emporiums Uniqlo, H&M and Forever 21/XXI For- strom & Sons, the owner and manager of South Coast Plaza. ever. It regularly receives international shopping tourists from Segerstrom built South Coast Plaza during a time of transi- China, Saudi Arabia, Mexico and Europe. It claims to be the Las Vegas trade show coverage tion for Orange County, when it was changing from an agricul- highest-grossing retail center in the U.S., with annual sales in ... pp. 3, 6, 7, 8, 9 tural area to a region of tract homes and office towers. It was excess of $1.7 billion, according to a South Coast Plaza state- increasing in sophistication in business, the fine arts and retail ➥ Segerstrom page 2 CIT’s Steinberg on her next moves ... p. 4 www.apparelnews.net Textile Preview with Tech Focus and LA Resource Guide A CALIFORNIA APPAREL NEWS SPECIAL SECTION 01,2,5.cover.indd 1 2/26/15 7:36 PM NEWS Segerstrom Continued from page 1 Saban Launching Arts Center on part of that land. In 2006, ment. It also is one of the only family- the Renée and Henry Segerstrom Con- held retail centers in the United States. cert Hall opened. (The concert hall was mm named after Segerstrom and his second Macbeth Apparel Segerstrom was working as a real wife, Renée, who passed away in 2000.) It estate developer in the 1960s when he is currently home to the Pacific Sympho- Saban Brands announced this month started considering building a mall on a ny. In 2011, the arts campus was renamed that its Macbeth property, which is head- lima-bean field in Costa Mesa, Calif. the Segerstrom Center for the Arts. quartered in Carlsbad, Calif., has struck two South Coast Plaza opened in 1967. It “Segerstrom changed people’s lives new licensing deals. was anchored by a May Co. store and a in Orange County,” said Shaheen Sade- Mercer House Inc., headquartered in Sears. The Sears is still doing business at ghi, the chief executive officer of Lab Montreal, has the global rights for Mac- the retail center. Holding LLC, which developed, owns beth’s footwear and North American rights He later recruited retailers such and manages The Lab and The Camp to its apparel. North Hill, an Australian as Bullocks, I. Magnin and Nordstrom to specialty shopping centers, which are less company, was awarded rights to make and the center and European fashion houses than a five-minute drive from South Coast sell Macbeth clothes in Australia and New and designer boutiques. Plaza. Zealand. The line has already been picked Segerstrom was a World War II vet- “What he did, he did first class,” Sade- up by upscale Australian department store eran who was wounded in the Battle of ghi said. “He raised the bar for all of us. David Jones. the Bulge. He was a graduate of Stan- He had one mall, and it happened to be Macbeth footwear and apparel were dis- ford University and a patron of the arts. the best, as opposed to a large portfolio played at the Agenda trade show in Las In 1976, he donated to the South Coast of mediocre malls like his competitors.” Vegas, which ran Feb. 16–18. Mercer is Repertory Theater land that his family His survivors include his wife Eliza- producing Macbeth printed T-shirts and had farmed in Costa Mesa. In 1980, he beth; his children, Andrea, Toren and An- footwear. North Hill will produce Macbeth led a $74 million fundraising campaign YOUSEF KARSH ton; six grandchildren; and seven great- apparel that the company hopes to place at to build the Orange County Performing Henry Segerstrom grandchildren. ● better department stores. Macbeth’s music- and streetwear-in- spired apparel line includes fleece, leather Continued from page 1 our economy moves,” he said. “We are going jackets and caps and T-shirts for men, Port to work seven days a week around the clock.” Krauss said. Women’s footwear and apparel In a press conference convened Feb. 23 at In previous months, the longshore workers will be launched in Spring ’16. the decommissioned battleship USS Iowa near had been accused of staging a work slowdown Macbeth was started by Thomas De- the Port of Los Angeles, both sides vowed to by not sending in enough qualified crane op- Longe, a guitarist and singer for Blink 182, clear the mound of merchandise sitting for erators to expedite clearing the docks. That set a band whose songs ranked on Billboard weeks and months on ships or docks. Port offi- the stage for tense labor negotiations in San charts. The inspiration for Macbeth’s cials noted it could take as long as three months Francisco. Toward the end, a federal mediator clothes were DeLonge’s indie and punk to clear the backlog. and U.S. Labor Secretary Tom Perez were dis- SIZING DOWN: A sign recently posted in a friends. Bobby Olvera Jr., president of ILWU Local patched to hammer out a deal. Payless shoe store in Whittier, Calif. Many of the shoes are “vegan” and do 13, with 7,000 members working at the Los A tentative labor agreement was announced not use leather for most of its models. In its Angeles/Long Beach port complex, assured ev- on Feb. 20. Both sides vowed to get back to place canvas, nylons and synthetic leather eryone that the longshore workers were ready work while ILWU and PMA members analyze Then there are local membership meetings are used. to rev up again. “We are committed now and the contract and vote on it. and a secret ballot to ratify the agreement. Mer- —Andrew Asch long-term to making sure these cans move and ILWU spokesman Craig Merrilees said the rilees said the process can take several months, union first must have a caucus meeting of the 90 but work will continue as if there were a con- elected delegates from the 29 West Coast ports tract in place.