Well Red “We Worked Very Hard to Get This Accomplished

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Well Red “We Worked Very Hard to Get This Accomplished ADAM’S CONSTANT THREE’S COMPANY CHANGE PUIG IS AIMING TO WORLD THE SHIFTING SOURCING LANDSCAPE, BECOME THE THIRD- ADAM LEVINE OF MAROON 5 INCLUDING WHICH COUNTRIES TO USE LARGEST PRESTIGE IS ADDING WOMEN’S WEAR FOR PRODUCTION, WAS A KEY TOPIC BEAUTY FIRM IN THE TO HIS COLLECTION FOR KMART. AT PRIME SOURCE. PAGE 9 WORLD. PAGE 6 PAGE 3 SPINNING OFF FROM SEARS Lands’ End Shares Fall 6.7% on Debut By DAVID MOIN and VICKI M. YOUNG INVESTORS WEREN’T too thrilled on Monday with the shares of either Lands’ End or its former parent, Sears Holdings Corp. Shares of each company saw their prices decline after Lands’ End offi cially became a public company TUESDAY, APRIL 8, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY again. The spin-off from Sears was completed on WWD Friday and Lands’ End now trades on the Nasdaq under the symbol “LE.” Prior to the spin-off, Sears received a dividend of $500 million from the cata- logue fi rm. Lands’ End will continue to pay Sears rent for the shops-in-shop space it occupies in 250 Sears’ stores. Lands’ End saw its stock price fall 6.7 percent to close at $29.55, from Friday’s close of $31.67. Shares of the company began preliminary trading on the Nasdaq on March 20 under the symbol “LEDMV” on a “when-issued” basis. That allows underwriters to book orders for purchases of a portion of any securities that are authorized but not yet issued. The shares had been down as much as 10 percent in intraday trading during a day when the overall market was down. Edgar Huber, president and chief executive offi cer of the 50-year-old brand, rang the closing bell at the end of Monday’s trading session and said, “This is a very historic moment for Lands’ End. Well Red “We worked very hard to get this accomplished. You have to assure that once becoming vertically sep- Dramatic while still approachable, red is having a major arated and independent, that the operations continue evening moment. Taking their cue from the red carpet to operate effi ciently, from a systems, logistics and — celebs love red — designers are working the color sourcing point of view and from a fi nancial decision- making point of view,” he said. in numerous sensual shapes. Here, Prabal Gurung’s Huber, who joined Lands’ End in August 2011 after silk chiffon gown. For more, see pages 4 and 5. serving as executive vice president of global business development for Liz Claiborne Inc., president and ceo of Juicy Couture, and earlier holding senior posts at L’Oréal, elaborated on how Lands’ End potentially benefi ts by becoming independent from Sears. SEE PAGE 3 Sandro and Maje Parent Names Lalonde as CEO By MILES SOCHA PARIS — Strengthening management ranks for its glob- al expansion drive, the holding company for the Sandro, Maje and Claudie Pierlot chains has tapped Daniel Lalonde as chief executive officer, WWD has learned. An offi cial announcement is expected today. Most recently president of Ralph Lauren International and a longtime executive at LVMH Moët Hennessy Louis Vuitton, Lalonde joins Paris-based SMCP Group as its new owner seeks to maximize growth in the hot contemporary apparel zone. Kohlberg Kravis Roberts & Co. bought a 65 percent stake in SMCP last June, signaling heightened inves- tor interest in the accessible luxury segment. Previously, L Capital, the private equity arm of LVMH, and Florac, an investment fund owned by the Louis-Dreyfus family, controlled SMCP as its retail banners made their fi rst steps into America and Asia. Lalonde is expected to start in May and work alongside the four original principals: Evelyne Chétrite and Judith Milgrom, founders and artistic directors of Sandro and Maje, respectively, as well as Frédéric Biousse and Elie Kouby, managers who joined the company in 2007 and who are to remain members of the executive team and become advisers to Lalonde. He arrives at a company that multiplied in size sevenfold over the past six years, and continues to post strong gains in a buoyant market for accessible fashions. SMCP reported a 20.6 percent rise in 2013 revenues to 422.1 million euros, or $578.4 million PHOTO BY KYLE ERICKSEN; STYLED BY BOBBI QUEEN MODEL: HANNAH/ELITE; HAIR AND MAKEUP BY CHEYENNE TIMPERIO FOR ARTMIX BEAUTY USING OBSESSIVE COMPULSIVE COSMETICS; FASHION ASSISTANT: MILTON DIXON MILTON USING OBSESSIVE ASSISTANT: BEAUTY COMPULSIVE COSMETICS; CHEYENNEFASHION TIMPERIO FOR ARTMIX MODEL: HANNAH/ELITE; HAIR AND MAKEUP BY SEE PAGE 6 2 WWD TUESDAY, APRIL 8, 2014 WWD.COM Loehmann’s Comes Back Online THE BRIEFING BOX Esopus fund, said, “This is a longer-term investment IN TODAY’S WWD By VICKI M. YOUNG for us. We’re looking to build the Loehmann’s brand over time. Esopus has a history of being a long-term LOEHMANN’S HAS BEEN resurrected from the investor in many of the purchases that we have made.” retail graveyard. Koppelman was hired by Esopus to work on The Loehmann’s nameplate will go live again the branding and revitalization of the Loehmann’s Sophie Touchet online, with a new Web site slated to be up and run- nameplate. is the subject of ning in early May, according to Charles Koppelman, While many of the details of the new site are still “Model Call” on founder of brand development and advisory firm under wraps, Koppelman, a marketing and brand- WWD.com. CAK Entertainment Inc. ing expert, plans to take advantage of both social The online store will operate under a new Web ad- and digital media. He also has experience in the IP dress that will be unveiled next month, but will remain realm, having formed CAK Universal Credit Corp. focused on “highly discounted brands,” Koppelman said. in 1998 using IP assets as a form of financing known After 93 years as a fashion presence in the off- as asset-backed securitizations. CAK’s work on the MANAGEMENT price channel focused on designer apparel and ac- securitization of the Bill Blass trademarks was cessories, the retail chain filed a voluntary Chapter considered the fashion industry’s first investment- SOCIETY 11 petition for bankruptcy court protection in grade asset-backed issue. THE December. After a fast-tracked bankruptcy tour — According to Koppelman, the site will feature OF its third time in bankruptcy proceedings, with the the same brands as before, but will also have a com- first in 1999 and the second in 2010 — the retailer ponent that skews towards the Millennial consum- liquidated in February. er, taking advantage of the emerging forms of media COURTESY The Loehmann’s nameplate and related intellectual as the primary outreach for that market. PHOTO property assets, including customer lists, were acquired “Research tells us the younger customer shops at a bankruptcy court auction by Esopus Creek Value online. They want to have a dialogue with brands Series Fund L P, a hedge fund. According to Manhattan about what they want to see and what brands they SMCP Group, the holding company for the Sandro, Maje and bankruptcy court records, the IP assets were acquired want.…We are going to talk to them, helping with Claudie Pierlot chains, has tapped Daniel Lalonde as chief for $750,000 and the customer lists for $100,000. the product and brand selection. They will tell PAGE 1 Andrew L. Sole, managing member of Esopus us what they want and help us with our buying,” executive officer. Creek Advisors LLC, the investment adviser to the Koppelman said. Lands’ End and Sears Holdings Corp. saw their stock price decline Monday after the former officially became a public company again. PAGE 1 Jones Shareholders OK Sycamore Merger Adam Levine is launching a women’s collection in time for at Jones, would remain at Jones. The golden para- summer to add to his namesake men’s wear at Kmart. PAGE 3 By LISA LOCKWOOD chute would cover Card; Dickson; John McClain, chief financial officer; Ira M. Dansky, executive vice A preview of this week’s bridal market in New York, where Vera NEW YORK — At a special meeting Monday, share- president, and general counsel and secretary, and Wang will present a short film instead of a fashion show and holders of The Jones Group Inc. overwhelmingly Christopher Cade, executive vice president and other designers have created a more efficient schedule. PAGE 7 approved the merger agreement with Sycamore chief accounting officer and controller. Partners and golden parachute compensation pay- As of March 5, Card and Dickson beneficially Labor activists say Bangladesh is still not adequately able to several executive officers. owned 1,859,724 shares collectively, representing addressing the needs of the 4.2 million workers who help fuel Sycamore offered to acquire Jones for $15 a share in 2.4 percent of the company’s outstanding shares the $23.5 billion apparel industry. PAGE 8 cash, or about $2.2 billion, on Dec. 19. The equity por- and agreed to vote their shares in favor of the deal. tion of the transaction is about $1.2 billion, with the re- Sources indicate that once the transaction closes, Sourcing executives at the Prime Source Forum said traditional maining $1 billion coming from the assumption of debt. Jones’ business will be carved into four independent business models, manufacturing bases and markets are evolving, Sources indicated that the deal could close as entities: Stuart Weitzman, Kurt Geiger, Jones Apparel PAGE 9 soon as today. and the rest of the company — the legacy footwear and retailers and suppliers need to keep up.
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