NEWSPAPER 2ND CLASS $2.99 VOLUME 70, NUMBER 27 JUne 27–jULY 3, 2014 THE VOICE OF THE INDUSTRY FOR 69 YEARS Dov Charney Wages War to Stay on at American Apparel By Deborah Belgum Senior Editor GES A In a filing on June 23 with the Securities & Exchange M BI Commission, Dov Charney, the ousted American Apparel founder, president and chief executive, said he met with a group of shareholders recently who want him to continue run- ERLINER/A ning the company, and he will fight to stay on. B The documents, filed on behalf of Charney, stated he was approached on June 19 by supporters, including stockhold- ers, who want him to continue to lead the company. American Apparel’s board of directors voted unanimously on June 18 to terminate Charney’s employment for cause. PHOTO BY ALEX J. Meanwhile, American Apparel announced that it had hired Matthew Shay, president and chief executive officer of the National Retail Federation, delivered the commencement speech at the Fashion Institute of Design & Merchandising 2014 graduation ceremony on June 21 at the Staples Center in Los Angeles. the investment-banking advisory firm Peter J. Solomon Co. to ensure that it has “adequate access to capital in the future at a reasonable cost.” John Luttrell, American Apparel’s executive vice president Bonobos’ Hybrid E-commerce Opens in Los Angeles ➥ American Apparel page 2 By Andrew Asch Retail Editor the hassles of a traditional retail store,” Ersenkal said in an email. “Our Guideshop model gives customers the chance TRADE SHOW REPORT Bonobos, a New York–headquartered men’s clothing to touch and feel Bonobos clothing before they buy, which brand, helped introduce a new retail model when its Guide- helps to take the guesswork out of shopping online. Addition- Immediates, Fall and New shops opened in 2011. Bonobos would deliver one-on-one ally, this model allows us to showcase our entire fit and style service to those who wanted a bricks-and-mortar store expe- offering in 1,500 square feet, something that is impossible rience, then ship the clothes to the consumer just like other for traditional retailers to do because they’re constrained by Resources Key at Fashion e-commerce stores do. showing the same shirt or pant in multiple sizes, which takes The company opened its first Los Angeles Bonobos Guide- up more room.” Market Northern California shop at 101 S. La Brea Ave. on June 27 at the District La Ersenkal said that Bonobos shoppers don’t mind waiting Brea retail compound. The company believes that the unique two to four days before the clothes they ordered at the Guide- By Christina Aanestad Contributing Editor hybrid model has already been proven to be a success, since shop are delivered from Bonobos’ Boston-area warehouse. nine other Guideshops have opened across the United States Delivery times are shorter on the East Coast. SAN MATEO, CALIF.—The San Mateo Event Cen- in the past three years. A San Francisco Bonobos Guideshop “As for not walking out with your purchases, we’ve ter was bustling with activity during the June 22–24 run of opened in 2013. learned that most men don’t care about carrying their bags of Fashion Market Northern California, where exhibitors At the Guideshops, Bonobos hopes to provide the best goods around and actually prefer having it delivered right to were showing fashion and accessories lines and buyers were of e-commerce and bricks-and-mortar shopping, said Erin their door,” Ersenkal said. “More importantly, our customer placing last-minute Summer through late-Fall orders. Ersenkal, Bonobos’ vice president of Guideshops and plan- feedback shows that the service experience one receives in “We have 36 new exhibitors—that’s a 20 percent increase ning. Shoppers drop by the Guideshop to view Bonobos the Guideshop greatly outweighs the instant-gratification ele- from last year,” said Suzanne DeGroot, FMNC executive di- chinos, jeans, shirts, suits, swimwear and Maide, Bonobos’ ment. We’ve seen that transactions in our stores are double rector. “I am hearing that people have found out about our performance golf line. Bonobos jeans are manufactured in what they are online, and customers who have come to the show from their customers and vendors they meet at other Los Angeles. The shop’s staff, called “guides,” work with the Guideshop visit more frequently, which we attribute to the shows.” shopper to confirm his measurements and what fits look good high-touch, highly personalized service customers receive in First-time exhibitor Elizabeth Roney displayed her Indi- on the shopper. the store.” ana-based line, Liz Alig, which includes recycled, organic “We are able to offer an experience that is customized to While consumers are welcome to drop by Guideshops as and fair-trade clothing and accessories. those who want to shop in person but don’t want to deal with frequently as they wish, the Bonobos model calls for them to “[FMNC] is a good market for fair trade and eco fash- ➥ Bonobos page 8 ➥ FMNC page 8 MADE IN CALIFORNIA INSIDE: Melody Ehsani: Expanding From Accessories to Apparel Where fashion gets down to business SM By Sarah Wolfson Contributing Editor ‘job’ was an internship at Creative Recreation at a time When Melody Ehsani turned from law to fashion, she when they had no employees—the company was a month wanted to capture a niche within the market for hip hop– old.” inspired jewelry, which soon caught the eyes of musicians Ehsani credits company co-founder and designer Rich such as Rihanna, Erykah Badu and Alicia Keys, who were Nand with showing her some of the technical aspects of de- spotted wearing Ehsani’s pieces, such as her “Love” rings sign, including how to use Illustrator. 6 8 and her barbed-wire choker necklaces. For her own collection, Ehsani started with a 12-piece Next came footwear, accessories, bags and a three-style collection of cut-and-sew tees that complement her jewelry, Sequential Brands buys Galaxy Brand ... p. 3 sneaker capsule collection with Reebok; a collection of nail which is inspired by Cleopatra and Nubian motifs, as well as Crooks & Castles adds new collection ... p. 6 wraps with beauty company NCLA; a pocket knife for girls astrological signs and other ethnic influences. with Victorinox Swiss Army; and, in 2013, a Melody Eh- “The impetus behind making the clothing was not because Made in California Resources ... p. 9 sani retail store on Fairfax Avenue in Los Angeles. I wanted to create something that didn’t exist before—which Her latest brand extension is an apparel collection, which is what my intention was with the jewelry and footwear,” debuted in the store and online about a month ago. Ehsani said. “It was, rather, that I wanted to bring a new “I’ve never had a fashion background, but I had a knack voice into fashion. I personally want to wear clothing that for products with form and function,” Ehsani said. “My first ➥ Melody Ehsani page 6 www.apparelnews.net 01.2.3.6.8.indd 1 6/26/14 6:35:52 PM NEWS Juicy Couture Revamping Stores Under New Ownership By Deborah Belgum Senior Editor pand Juicy Couture across our international Brands quickly inked a deal with discount Levy and Gela Nash-Taylor, fashioned a ve- markets and to re-energize the brand in the department store Kohl’s to sell Juicy Cou- lour track suit for Madonna, who launched a By next year, Juicy Couture will have a U.S. and Canada,” said Jamie Salter, chair- ture–branded products beginning this fall. new trend—sexy sweats with lots of bling. series of new concept stores open to reflect man and chief executive of Authentic Brands Juicy Couture became a hot item in 2001 Juicy Couture was sold to Liz Claiborne Inc. the label’s changing directions under new Group. when the brand’s founders, Pamela Skaist- in 2003 for around $100 million. ● ownership by Authentic Brands Group. On the product side of the business, Juicy The new concept stores for the luxury Couture is pumping up its Juicy Couture casual line born in Los Angeles will be in Black Label collection, the brand’s casual major urban areas such as New York City, luxury lifestyle section. New products will Vince Announces 2nd Public Offering Los Angeles and Vancouver, Canada. The be offered in intimates, kidswear and foot- new locations will replace existing Juicy wear. There will also be a focus on open- Vince Holding Corp. received $177 mil- representatives of the underwriters. In ad- Couture stores in the United States that were ing girls’ and intimates freestanding shops lion in an initial public offering in November dition, Goldman, Sachs & Co., Barclays being phased out because they opened under worldwide. 2013, and, on June 24, it announced a sec- Capital Inc., J.P. Morgan Securities LLC Liz Claiborne Inc., the previous owner. Liz Meanwhile, Authentic Brands Group is ond public offering. and Wells Fargo Securities LLC are joint Claiborne, which changed its name to Fifth partnering with other companies to expand Vince, which started business in Los An- book-running managers in the offering. & Pacific Cos. and then to Kate Spade & the label’s various categories. Juicy Couture geles in 2002, announced a second public Also in June, Vince Holding announced Co., sold Juicy Couture to Authentic Brands will work with Elizabeth Arden to develop offering of 3,550,373 shares of common results for the first quarter of its fiscal 2014 Group last year for $195 million. fragrances, Steve Madden for shoes, Mova- stock. The sellers include the company’s year.