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Patch Works NEW YORK — Rustic and Refined — a Combination That Goes to the Heart of Ralph Lauren’S Work

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Patch Works NEW YORK — Rustic and Refined — a Combination That Goes to the Heart of Ralph Lauren’S Work SAKS NIXES BON-TON BID/2 ICONIX SAID BUYING RAMPAGE/4 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • September 19, 2005 • $2.00 Accessories/Innerwear/Legwear Patch Works NEW YORK — Rustic and refined — a combination that goes to the heart of Ralph Lauren’s work. For spring, he mixed the elements in beautifully tailored jackets cut from patchwork denim. Here, a shapely blazer over a frilled shirt and printed jeans. For more on the shows, see pages 6 to 15. The Long, Hot Season: Buyers Applaud Spring But Gripe About Shows By Sharon Edelson and David Moin NEW YORK — A brutal show schedule with many off-site venues; hot, humid weather, and snarled traffic as a result of the United Nations summit left retailers feeling cranky last week, but nonetheless bullish about spring. Given the continuing strength of the luxury market, retailers said they expect their open-to-buys to be at least a few points ahead of last year and perhaps more if their companies are opening new stores. After all, the euro is dropping against the dollar, meaning designer goods might be less expensive come See Buyers, Page12 PHOTO BY JOHN AQUINO PHOTO BY 2 WWD, MONDAY, SEPTEMBER 19, 2005 WWD.COM Saks Turns Down Bon-Ton By Vicki M. Young WWDMONDAY Accessories/Innerwear/Legwear NEW YORK — Saks Inc. has re- jected a bid by The Bon-Ton Stores for its northern depart- FASHION Ralph Lauren presented an array of stunning items, Donna Karan offered ment store group, and will now elegant sensuality and Gwen Stefani made her runway debut to close the week. try to sell the nameplates indi- 6 vidually, financial and retail sources familiar with the negoti- GENERAL ations said. Despite the brutal schedule, sticky weather and snarled traffic, retailers According to those sources, 1 found many salable collections filled with trends in New York. Bon-Ton was the only bidder for the northern department store Saks Inc. rejected a bid by Bon-Ton Stores for its northern department store group, which includes the 2 group and will now try to sell the nameplates individually, sources said. nameplates Carson Pirie Scott, Kate Spade LLC said The Neiman Marcus Group, which owns 56 percent Younkers, Herbergers, Bergners 4 of the firm, is exploring “strategic alternatives,” including a possible sale. and Boston Stores. Retail The Iconix Brand Fashion Group is acquiring contemporary firm Rampage sources said Bon-Ton’s bid was for $45.9 million — $25.8 million in cash and $20.1 million in stock. rejected because of price. Saks 4 sought $1.5 billion for the group, Former Sean John executive Jeffrey Tweedy has become ceo and president but the Bon-Ton bid, said to be 4 of the House of Deréon sportswear collection, licensed to Tarrant Apparel. in the $1 billion range, was far The M&A market is brimming with $100 billion in private equity funds and lower than the asking price. 23 investors are looking to spend it in the retail sector. Meanwhile, shares of Saks on Friday tumbled 9.84 percent in With the Giorgio Armani label firmly planted in the mind of the shopping trading following the sale of a 26 elite, the firm wants to grow with new stores, accessories and furniture. block of nearly 2 million shares by Morgan Stanley, according to several traders. The stock closed EYE Withstanding the heat at the Calvin Klein after party and other fashion week at $18.60, down $2.03, in Big blasts; Reese Witherspoon on being a dork, plus a Chic of the Show. Board trading, with 10.3 million 16 shares trading hands compared Obituary ..................................................................................................29 with an average volume of just 1.9 million. Analysts and portfo- Classified Advertisements ..................................................................29-31 lio managers at several invest- To e-mail reporters and editors at WWD, the address is ment firms said there was specu- [email protected], using the individual’s name. lation midday regarding the failed Saks/Bon-Ton negotiation. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. A spokeswoman for Saks could VOLUME 190, NO. 61. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional not be reached for comment. issue in June, July and November, two additional issues in April, May, August and December, and three additional issues in Sources said Saks and Bon- group, from an awareness posi- some point, could be more attrac- February, March, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Ton were haggling over the price tioning, are below the others, and tive than SFA,” the analyst said. Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill for the last few weeks, but that at should have less appeal.” While the mergers and acqui- Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice-President_General the end of the day the “differ- The northern department sitions activity suggests a sell- Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. ence” between the ask/bid range store group potentially could be er’s market in general, the in- Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. couldn’t be overcome. rudderless in the next few ability of Saks to get several Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS A real estate contact specializ- weeks, since George Jones will deals to happen suggests that it CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North ing in the department store sec- be stepping down as president is a buyer’s market when ques- Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four tor, who requested anonymity be- and chief executive officer of the tionable assets are involved. weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West cause he’s worked with both firms division on Sept. 30. It was his A buy-side analyst for an insti- 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221- before, observed, “Saks made the resignation, in part, announced tutional investor said, “Buyout 9195. Visit us online: 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 right decision in rejecting the bid. last month, that spurred expecta- firms don’t have to buy SFA, or and services that we believe would interest our readers. If you do not want to receive these offers and/or information by mail Bon-Ton [without an equity part- tions that Saks was close to ink- even the department store and/or e-mail, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED ner] really didn’t have the money ing a deal for the department group. They have options, such MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND for it. Now it is a question of who store group. as Linens n’ Things Inc.” This TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART is going to buy the pieces of the Bon-Ton is believed to have big-box specialty retailer has WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE northern department store group, made the bid on its own, since been working with Credit Suisse ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. and who would be interested in talks with other buyout firms to First Boston as its advisor to the different locations.” partner in the deal for the de- identify options, including the William Susman, president partment store group supposed- sale of the company. MONDAY: London Fashion Week (through Thursday). and chief operating officer at in- ly fell through. As reported, Regarding bids for Club Libby Texworld, Paris (through Thursday). vestment banking firm Financo Cerberus last month decided to Lu, a chain of 51 units catering to Nike Inc. reports first-quarter sales and earnings. Inc., said, “In today’s department drop out of the bidding process, preteen girls, Forever 21 had the store industry, as Federated one that would have teamed it so-called inside track, and was TUESDAY: Fashion Coterie, New York (through Department Stores and May with Bon-Ton for all of Saks Inc. expected to buy the chain among Thursday).
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