FEDS ARREST JACOB THE JEWELER/2 Women’s Wear Daily • The Retailers’ Daily Newspaper • June 16, 2006 • $2.00 WWDFRIDAY ▲ Sisley’s new Soir de Lune, page 7. Beauty Seeking A Cure NEW YORK — After the success of their women’s scent, Flowerbomb, designers Viktor Horsting and Rolf Snoeren are hoping to shake up the fragrance category a bit more this fall. Their fi rst men’s fragrance, Antidote, is due on counter in September in about 150 upscale specialty stores in the U.S. Industry sources estimate it will do at least $2 million at retail its fi rst year. For more, see page 6. NO; STYLED BY MEGAN MCINTYRE NO; STYLED BY Pumping Up Penney’s: Store Said Mulling Exclusive Line With Polo By Vicki M. Young high-flying Polo for the moderate been broached by the two sides NEW YORK — Does Penney’s chief department store giant could and could involve a wide range SOIR DE LUNE BY JOHN AQUI BY SOIR DE LUNE executive officer, Myron E. be a boon to the bottom lines of of products in men’s, women’s, “Mike” Ullman 3rd, have Ralph both public companies and could children’s and home. A deal might Lauren’s ear? happen sometime next year. be structured that’s similar to Sources indicate that a “dream” While any prospective deal is Lauren’s exclusive agreement with prospect of an exclusive line by far from fruition, the subject has See Penney’s, Page 14 ANTIDOTE PHOTO BY THOMAS IANNACCONE; ANTIDOTE PHOTO BY 2 WWD, FRIDAY, JUNE 16, 2006 WWD.COM Feds Bust Jacob the Jeweler By Sophia Chabbott Jacob Arabov in his 57th Street store. Inset: NEW YORK — The king of bling, Jacob Arabov, WWDFRIDAY Jewelry from Jacob & Co. Beauty founder of Jacob & Co., was arrested Thursday on federal money laundering charges at his 57th Street fl agship here. FASHION Federal prosecutors charged that Arabov, 41, Sonia Rykiel took a page out of Jeanne Moreau’s getup in “Jules et Jim” participated in a scheme to launder more than 4 for cruise, and photo inspiration played a part in Tory Burch’s resort looks. $270 million in illegal narcotics proceeds involv- ing a Detroit-based drug organization called the Black Mafi a Family. He was named in a supersed- GENERAL Is an exclusive line by Polo Ralph Lauren for J.C. Penney in the offi ng? ing indictment of 16 people that was returned May 10 and unsealed on Thursday. 1 The subject has been broached, but any deal is far from fruition. The original indictment last year alleged that Jacob Arabov, founder of bling jeweler Jacob & Co., was arrested on 25 people operated the cocaine ring, starting in 2 federal money laundering charges Thursday at his New York fl agship. the Nineties, in the Detroit metropolitan area, and that the operation eventually spread to California, BEAUTY: Viktor Horsting and Rolf Snoeren claim to have come up with an Texas, Kentucky, Georgia and Missouri. 6 Antidote for boredom in the men’s fragrance world with their new scent. Arabov, who uses the surname Arabo profes- Jean Paul Gaultier and Beauté Prestige International are punching up his sionally, was charged on one count of money 7 U.S. fragrance business with the launch of Gaultier to the Power of Two. laundering. He was accused of selling jewelry that was purchased by alleged ringleaders Terry Avon had a tough start to 2006, but it’s fi ring back with a strong second- Lee Flenory, Demetrius Flenory and others. 8 half lineup backed by a major ad campaign and sampling program. Members of the drug organization would deposit “large amounts of cash derived from the sale of Classifi ed Advertisements.............................................................15 cocaine into various bank accounts; purchase ca- shier’s checks and money orders and wire trans- To e-mail reporters and editors at WWD, the address is fi rstname. fer these funds,” the U.S. Attorney’s offi ce for the [email protected], using the individual’s name. Eastern District of Michigan said in a statement. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- “These funds would then be used to purchase RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 191, NO. 127. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one ad- assets and pay personal expenses with the goal ditional issue in January and November, two additional issues in March, May, June, August and December, and three ad- of concealing the true source, nature and owner- ditional issues in February, April, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, ship of the funds.” Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and Prosecutors alleged that Arabov, C.O.O.; Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; whose over-the-top diamond David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice President_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance jewelry and watches are Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. status symbols in the Lil’ Kim, Jay-Z, Pharrell Williams, Diddy Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. hip-hop world, failed and Jessica Alba. Jacob & Co.’s target de- 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS to notify the Internal mographic now extends from corporate CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, Revenue Service types to Hollywood heavyweights. ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR after receiving large In 2004, Arabov purchased a DAILY, P.O. Box 15008, North 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. sums of currency, Manhattan town house at 48 East 57th Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other money orders and Street to house his boutique, which is U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. cashier’s checks. designed to look like a diamond mine 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. For permissions Authorities have with its striated white Corian walls. The and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To seized a number of building also houses the fi rm’s sales of- subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make Jacob & Co. products, fi ce, watchmaker shop and jewelry re- 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 by mail and/or e-mail, please advise including a platinum pair facility. us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. watch with diamonds, Last year, Arabov launched his fi rst for- WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- a rose gold watch and mal women’s jewelry line, available ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, a custom-made platinum exclusively at the fi rm’s sole store, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED necklace with 107.2 carats of with prices starting at $3,000. Asscher-cut diamonds. Jacob & Co. watches are sold at If convicted, Arabov faces as many as the store, as well as through a 20 years in prison. He pleaded not guilty few independent fi ne jewelry and has been released on bail. and watch stores. Attorney Benjamin Brafman, who This spring, the com- Quote of the Week is representing Arabov, said in a state- pany rolled out an adver- ment that the arrest “is the result of an tising campaign, shot by “Acquisitions…are critical and unfortunate misunderstanding that we Rocco Laspata and Charles believe will be straightened out in the Decaro, touting women’s something we are very focused on.’’ next several weeks. We are confi dent jewelry and watches and that once the government is advised of starring model Helena — Emanuel Chirico, chief executive offi cer, all the facts surrounding these issues, Christensen. Phillips-Van Heusen that all of the charges against Mr. Arabov Arabov is also on the tech will be completely dismissed.” forefront. In March, the fi rm Arabov, a native of Tashkent, launched the Quentin, the Uzbekistan, started his fi ne jewelry busi- world’s fi rst watch with a 32-day ness on West 47th Street 20 years ago.