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What Should He Wear? THE TOP STORIES ▲ YES, HE DID: Barack Obama’s YEAR ▲ THE historical election. MELTDOWN: IN The ▲ economy AU REVOIR, YVES: FASHION in turmoil. The death of Yves Saint Laurent. ’08SECTION II WWDWomen’sWomen’s WeWear Daily • The Retailers’MONDAY Daily Newspaper • December 15, 2008 • $3.00 Accessories/Innerwear/Legwear Barack Obama What Should He Wear? Although the world now knows that President-elect Barack Obama will wear a Hart Schaffner Marx single- button, notch-lapel tuxedo for the evening festivities on Inauguration Day, Jan. 20, that isn’t stopping others from lining up for the role of the administration’s First Tailor. So WWD asked men’s designers what they thought the new president should wear on his historic day. Here, Brooks Brothers — which has dressed 10 U.S. presidents, including Abraham Lincoln and Bill Clinton — imagines a classically clad Obama in a morning coat with tails, a double-breasted INAUGURATION vest and a formal cravat. For more looks for evening and day — and ’09 even ties — see pages 6 to 11. 4 WWD, MONDAY, DECEMBER 15, 2008 WWD.COM General Growth Refi nances Partial Debt By Evan Clark fi rm might also have trouble keeping its prop- erty managers on board. WWDMONDAY THE CLOCK TICKED THROUGHOUT THE A Chapter 11 fi ling, however, would not have Accessories/Innerwear/Legwear weekend for General Growth Properties Inc., an immediate impact on the debt ratings of which managed to refinance or pay down $872 companies tied to General Growth through com- million in debt on Friday, but not another $900 mercial mortgage-backed securities, a type of FASHION million in loans maturing at the same time. fi nancial instrument that is backed by a loan on 6 With his lanky, basketball-toned physique and The Chicago-based real estate investment a commercial property, Fitch said. sophisticated élan, Barack Obama has all the trust, which oversees a portfolio of more than “The likelihood for signifi cant rating actions makings of a presidential style icon. 200 malls in 44 states, said Friday it secured across transactions with GGP property exposure about $896 million in mortgage loans, which it is slim given their strong performance, moder- GENERAL will use to retire a $58 million bond that came ate leverage and the bankruptcy remote nature 4 General Growth Properties managed to refi nance due Thursday and about $814 million in mort- of CMBS borrowers,” Merrick said. or pay down $872 million in debt, but not another gage indebtedness maturing next year. The ma- The company has more than $3 billion in debt $900 million in maturing loans. turities on the new fi nancing range from fi ve to maturing next year. Revenues in its last four seven years. quarters totaled $3.39 billion. 4 Kohl’s and Forever 21, among the few retailers However, those loans are separate from the General Growth put three of its Las Vegas still expansion-minded in the down economy, $900 million in loans for the Fashion Show and properties up for sale in October and said it acquired 46 Mervyns’ leases for approximately Palazzo properties in Las Vegas, which matured would put construction projects that are not $6.25 million in a court auction held last week. on Friday. The fi rm said Friday it is continuing nearing completion on hold. 16 ACCESSORIES: Despite a tough time fi nancially, to negotiate with its lenders for a further exten- “We realize we need to generate billions to Damiani executives feel the diversity of its brands sion but could offer no assurance that it would deleverage the company,” Adam Metz, interim portend a brighter future. receive one. chief executive offi cer, said on a conference call Reacting more to the new fi nancing than to the with analysts last month. “Sales transactions are 19Black Friday promotions helped eke out small loans coming due, investors sent General Growth an important part of our plan. Unfortunately, increases for retailers last month, but sales shares skyrocketing on Friday, closing at $1.80, these transactions take time and, until the deals weren’t strong enough to boost year-ago results. up 36 cents, or 25 percent. Since hitting their are completed, there is really nothing to an- Renewed efforts to broker a breakthrough deal in 52-week high of $46.59 on Dec. 14, 2007, shares nounce. We hope to be able to report some trans- 21 have traded as low as 24 cents, on Nov. 12. actions prior to yearend.” the troubled Doha global trade talks by yearend General Growth borrowed heavily to build its Metz was named interim ceo and Thomas were derailed Friday. retail empire and, as a consequence, most of its as- Nolan Jr. interim president last month after EYE sets have been put up to secure borrowed money. the company learned former president Robert “GGP malls are generally dominant malls in Michaels and former chief financial officer 12 Young girls in cocktail frocks braved Thursday their region,” said Susan Merrick, managing di- Bernard Freibaum received unsecured loans night’s torrential downpour for a Teen Vogue rector at Fitch Ratings, on Friday. “If a bankrupt- from a Bucksbaum family trust in order to cover shopping event at the Louis Vuitton store. cy were to occur, funds necessary for the ongo- margin calls on the purchase of company stock. Taraji P. Henson in The Year in Fashion is included as a ing capital expenditures utilized for renovation The Bucksbaum brothers, Martin and Matthew, Pamella Roland. Section II in this issue. and leasing costs may be limited to excess cash began expanding on a family grocery business fl ow from the property or [debtor-in-possession] in 1954, building one of the Midwest’s fi rst shop- fi nancing in a Chapter 11 reorganization.” ping centers in Cedar Rapids, Iowa. In 1970, the Classifi ed Advertisements...........................................................................................22-23 Merrick said a bankruptcy could make for brothers exchanged stock for shares in General more vacancies in malls as the company’s leas- Growth, which was listed on the New York Stock TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS ing arrangements become less productive. The Exchange two years later. [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 196, NO. 125. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, October and December, two additional issues in March, April, May, June, August and November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division Kohl’s, Forever 21 Take Mervyns Units 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. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage By David Moin in the auction are owned by Macerich, the Santa paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Monica, Calif.-based mall owner and operator. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian KOHL’S AND FOREVER 21, AMONG THE FEW Of the 22, Forever 21 will occupy 12 and Kohl’s addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS retailers still expansion-minded in the down econ- will occupy 10. Construction to convert those CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA omy, acquired 46 Mervyns leases for approximate- locations is expected to begin next month, and 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed ly $6.25 million in a court auction held last week. the units will open at various times next year, on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. Kohl’s will move into 31 locations, while Macerich said. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online Forever 21 will get 15, pending bankruptcy court Macerich bought 41 Mervyns sites in late 2007 at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. approval. Mervyns decided to liquidate its 149 and early 2008. “We look forward to gaining con- 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 locations in October. trol of our remaining 19 Mervyns locations by advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT “With over 1,000 stores from coast to coast, second-quarter 2009, when we will reach out to RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, these locations provide increased presence in the retailers that have expressed strong interest UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS.
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