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Runway and Roadway New Fiber Technology NEWSPAPER 2ND CLASS $2.99 VOLUME 74, NUMBER 33 AUGUST 10–16, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS Fashion Week Organizers Keep Los Angeles on the Fashion Map By Deborah Belgum and Dorothy Crouch Fashion Week is always a hectic time in Los Angeles, es- pecially with all of the different forces around town organiz- ing runway shows in disparate locations. The fashion week scene has evolved over the years. Four- teen years ago, IMG and Smashbox Studios joined forces to organize a tight and cohesive formula for shows that ran day and night in a commercial photography studio in Culver City, Calif. After five years, that joint venture dissolved in 2008, but several new organizations stepped in to fill the void. Twice a year, LA Fashion Week, Style Fashion Week and Art Hearts Fashion enlist scores of designers from Los Angeles and around the world for informative runway shows that migrate to venues around the city. For an inside look into the organizers behind the shows, turn to pages 24–26 for profiles of the shows’ founders. Ron Herman’s ARLEN KASHISHIAN MANNY LLANURA JOE GARCIA Next Step Is More Japan By Andrew Asch Retail Editor Ron Herman has spent his career introducing some of the world’s most famous denim brands from his self-named Ron Herman store, which for decades has been a pioneer in the Los Angeles boutique business. For his next step, he wants to introduce to Los Angeles a slate of house brands selling at his Ron Herman chain of stores in Japan. He is shooting for 2019 to bring those lines stateside while at the same time adding new collaboration lines with various designers and brands. He forecast that the upcom- ing slate of Ron Herman products will be sold at only a few select doors outside of Japan. Not only will he bring the Japanese-only brands, includ- ing RH Vintage and Ron Herman California, to Los Ange- ➥ Ron Herman page 14 88 INSIDE: Where fashion gets down to business SM JOE GARCIA ARLEN KASHISHIAN MANNY LLANURA 6 8 National Stores files bankruptcy ... p. 2 Runway and Roadway New fiber technology ... p. 12 LA Fashion Week and the Petersen Automotive Museum joined forces Swim and Active Collective shows ... p. 20 to organize a fashion show of Escada gowns along with Porsche Design Fall 2019 active trends ... p. 22 menswear to coordinate with a Porsche exhibit at the Los Angeles museum. Resource Directory ... p. 28 For more looks from the fashion show, see page 16. www.apparelnews.net 01.14.cover.indd 1 8/9/18 4:38 PM NEWS Parent Company of Fallas Paredes and Factory 2-U Files for Bankruptcy Protection Bargain-basement prices have been the nameplate of Fallas, Fallas Paredes, Fallas by Ilanit Fallas. ished. driving force behind the decades-old Fal- Discount Stores, Factory 2-U, Anna’s Lin- The company said its bottom line has suf- “National Stores has been a fixture of las Paredes stores, which mostly cater to a ens by Fallas and Falas in Puerto Rico. fered setbacks from some underperforming the retail community for over 56 years, and Latino market, and its younger Factory 2-U Store-closing sales will begin Aug. 9. stores, which were exacerbated by severe through this process we intend to secure our stores. In a press release, the company said it had weather in various regions, including in future for our valued employees, customers But bargain-basement prices couldn’t ample liquidity to fund operations and has Puerto Rico, which was badly hit by and is and suppliers,” the chief executive said in a help National Stores Inc., owned primarily received a commitment for up to approxi- still recuperating from last year’s Hurricane statement. Maria. In court documents, the company said it The company also suffered financial loss- has between 200 and 999 creditors. Some es from its acquisition of 44 Conway Stores of its major creditors, all located in New in 2014 for an undisclosed price. York, include Armouth International, Last year, the computers at the various owed $15.6 million; One Step Up, owed stores in the National Stores chain were sub- $10.3 million; Louise Paris, owed nearly jected to a malware attack that lasted from $4 million; and Seven Apparel, owed $3.9 July 10 to Dec. 11, 2017. million. The affected payment-card information National Stores was started in 1962 by may have included names, payment-card Michael Fallas’s father, Joseph, with a single numbers, expiration dates and security downtown Los Angeles store. It is known for codes. Because of the attack, the company its value-priced clothing, which often sells said its access to its operating funds dimin- below $10 to $20.—Deborah Belgum Macerich Partnering With Co-Work Offices for Its Malls Co-working office spaces are familiar when it comes to adding exciting, traffic-driv- ANDREW ASCH sights in the downtown areas of almost any ing new uses to our market-dominant retail A Fallas Paredes store in downtown Los Angeles big city. Soon these shared office spaces will properties across the country,” he said. “With be at Macerich-owned malls. time-limited marquee attractions like Candy- by Michael Fallas, from filing for Chapter mately $108 million in debtor-in-possession The Southern California shopping-mall topia, luxury fitness/wellness concepts, desti- 11 bankruptcy protection on Aug. 6 in U.S. financing from its existing lenders. company announced it will be working with nation restaurants and appealing first-to-mar- Bankruptcy Court in Delaware. “National Stores, historically a profitable New York–based Industrious to roll out ket digitally native brands, our well-situated The bankruptcy filing will help the com- company, is committed to improving its fi- co-working office spaces at select Macerich centers are high-street, town-square locations pany, based in Gardena, Calif., reorganize nancial health and returning to profitability,” properties. The first Industrious location where shoppers, retailers and brands abso- by closing 74 of its 344 stores in its diversi- said Michael Fallas, who owns 98 percent of will open at Scottsdale Fashion Square in lutely want to be. Our settings deliver top-tier, fied outposts, which include stores under the the company. The other 2 percent is owned Scottsdale, Ariz., in January 2019. built-in amenities for today’s professionals, At this time, it was not announced what which is why a partnership with experience- other Macerich properties will be getting In- focused Industrious makes so much sense.” dustrious co-working spaces. Macerich owns California retail centers Macerich Chief Executive Officer Art including Santa Monica Place, Los Cerri- Coppola said that the deal would drive traf- tos Center and the Westside Pavilion. JERIAN the hangers you were looking for... fic to malls. “Macerich is on the cutting edge —Andrew Asch RETAIL SALES July Retail Sales Up Significantly The back-to-school season started on a L Brands Inc., the parent company of robust note in July and beat analysts’ fore- Victoria’s Secret, reported net sales of casts, according to market research company $849.7 million in July; however, its same- Retail Metrics. store sales were flat compared to the same Ken Perkins, president of Retail Metrics, period the previous year. had predicted that same-store sales for U.S. Boot Barn Inc., an Irvine, Calif.–head- retailers would increase 6.8 percent. Instead, quartered retailer of Westernwear, also report- July comps rose 7.5 percent. Perkins gave ed brisk business for its first quarter of fiscal credit to a good economy for thriving busi- 2019. For the quarter ending June 30, same- ness in July. store sales jumped 11.6 percent. The retailer’s “Macro conditions remain very favorable net sales increased 16.2 percent to $162 mil- for consumers,” he wrote in an Aug. 9 note. More people were working in July. An already low May U.S. unem- July Retail Sales ployment rate of 4.0 percent dipped to $Sales % Change Same-store 3.9 percent in July, according to the (in millions) from yr. ago sales % change U.S. Bureau of Labor Statistics. Action-sports mall retailer Zumiez The Buckle $68.0 +12.3% +2.3% L Brands Inc. $849.7 +10.0% 0.0% more than 500+ different in-stock hanger styles Inc. reported one of its month’s best performances. The Seattle-area com- Zumiez Inc. $83.0 +23.0% +9.1% Cato Corp. $56.7 +1.0% +2.0% complete collection of wood, plastic, metal and satin hangers pany came in with net sales of $83 low minimums on personalized hangers million and a 9.1 increase in same- Information from company reports specialized in full custom design solutions store sales in July. The retailer raised hangers for swimwear, lingerie, menswear, sportswear, ladies wear and kids wear its forecast for its 2018 second quar- ter to be $0.13 or $0.14 per share compared lion. Jim Conroy, Boot Barn’s chief executive servicing designers, fashion brands and retailers across North-America with a previous guidance of between $0.04 officer, said the retailer beat its forecasts. and $0.09. “We are encouraged by our very strong Denim-focused mall retailer The Buckle start to fiscal 2019 as sales, merchandise Inc. rallied from a 1.2 percent decline in margin and earnings per share were up sig- same-store sales in June to report a 2.3 per- nificantly year-over-year,” Conroy said in jerianhangers.com cent increase in comps for July. Value retail- a statement. Boot Barn runs a fleet of 232 er The Cato Corp.
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