BRADLEY BAYOU OUT AT HALSTON/2 A&F EYEING EUROPE/8 WWDWomen’s Wear Daily •WEDNESDAY The Retailers’ Daily Newspaper • February 16, 2005 • $2.00 Sportswear A Good Russe NEW YORK — Oscar de la Renta is nothing if not cosmopolitan, and, for fall, he took a stylish trip to a favorite destination, Russia. On this particular trek, he picked up on some current trends: fur galore, shapes with volume and flat shoes. Here, his richly detailed velvet skirt and ruffled silk blouse. For more on the season’s Russian influences, see pages 6 and 7. Reading the Currents: Federated-May Merger Still Seen as Possible By Vicki M. Young NEW YORK — Think stalled, not broken down. The merger dance between Federated Department Stores and rival May Department Stores still has legs, according to sources. At least two leading retail analysts have pegged May with an acquisition value of $36 to $40 a share. Despite published reports, the analysts and sources said there has been only a pause in the talks between Federated and May, not an irrevocable breakdown. The analysts believe the likelihood of a Federated takeover of May remains high in the end given the rush to acquire that See Federated, Page8 PHOTO BY THOMAS IANNACCONE PHOTO BY 2 WWD, WEDNESDAY, FEBRUARY 16, 2005 WWD.COM Halston, Bayou Part Ways WWDWEDNESDAY Sportswear By Marc Karimzadeh label is planning to take, but said, and his dresses adorned the likes “There will be a successor. We of Oprah Winfrey, Queen Latifah, FASHION NEW YORK — Halston is on the have identified several candi- Debra Messing, Janet Jackson Designers are simply crazy about Russia for fall, as evidenced by Michael lookout for a new designer. dates and will go through a and Eve. Just recently, an episode 6 Kors’ cadet-style coat to Cynthia Steffe’s velvet top and patterned skirt. Creative director Bradley process of making that decision.” of “Desperate Housewives” Bayou is leaving the iconic Ameri- Bayou became Halston’s cre- played out in a charity fashion can label to pursue several op- ative director in December 2002 show of Halston dresses. GENERAL portunities, including building after the company went through Bayou, a Texan, broke into Although merger talks between Federated Department Stores and May his own collection and more tele- several designers in five years to the fashion business in 1989 1 Department Stores have stalled, Wall Street remains bullish on the deal. vision work. The fall collection, revive the iconic brand, which with his own hand-painted vests Creative director Bradley Bayou is leaving Halston to pursue several which is to be presented by ap- was relaunched in 1997. Ran- that were sold at Neiman Mar- 2 opportunities such as building his own collection and more TV work. pointment at Halston’s atelier in dolph Duke, Kevan Hall, Craig cus, Fred Segal and Barneys Island Capital Group plans to make marinas into one-stop docking for Los Angeles next month, will be Natiello and Piyawat Pattana- New York. He established signa- luxury ships, as well as retail, dining, hotel and recreational facilities. Bayou’s last for the house. puckdee each passed through ture custom and ready-to-wear 5 “Bradley has done five collec- Halston’s threshold, but made collections, and often appeared Better-than-expected sales and lower costs spurred Nordstrom Inc. to tions for Halston, and it’s been a news with dramatic departures. on TV shows such as “Live with 9 double-digit earnings gains for the fourth quarter and year-end periods. good relationship,” James J. Am- There were reports of staff Regis & Kelly” and “The View.” Sales rose at apparel, general merchandise and department stores in meen, chief executive officer of abuse, alcohol problems and “I have just decided it was 9 January, as stores cleared merchandise and shoppers cashed in gift cards. Halston LLC, said. “We can’t even a rumored penile enhance- time to pursue my own label,” speak for him, but it became obvi- ment gone wrong during the vari- Bayou said. “I love the associa- The Justice Department filed an appeal seeking to overturn an injunction ous to us in our recent experience ous tenures. tion with Hollywood, and my 13 that has halted the government’s review of China safeguard petitions. that we are moving the brand in a This threatened to discredit strength is turning celebrities direction that may be a little dif- the house’s respectability, but who are considered to be the ferent from where it would be if Bayou managed to deflect any worst dressed into the best MAINSTREAM Gloria Vanderbilt’s fall ad campaign features three supermodels and is we were to do it with Bradley.” image problems. His tenure was dressed. I am about to do it meant to raise the profile of the moderate brand. Ammeen added that it was too scandal-free, and the label was again for the Academy Awards 10 early to disclose the direction the picked up by Bergdorf Goodman, and it will be a big one.” WEST A revised schedule involving fashion week and the contemporary and 18 general markets in Los Angeles is causing confusion and concern. Pinault Not Part of Exec Life Settlement SUZY Cornelia Guest will slip into a Badgley Mischka dress for Elton John’s Oscar PARIS — François Pinault, the bank Credit Lyonnais’ acquisi- merly state-owned Lyonnais. 4 party…Kate Winslet says it’s all in the bra…Diamond in the rough. French tycoon whose PPR owns tion of the troubled California in- Sources said the deal did not Gucci Group and the retailer surer at a time when it was ille- include all parties involved, ex- WWDCoterie, a Section II preview of the Fashion Coterie show, appears in this issue. Printemps, was not included in a gal for banks to own insurance cluding not only Pinault but also Obituaries................................................................................................17 $525 million out-of-court settle- companies. the MAAF insurance entity. Classified Advertisements ..................................................................19-23 ment reached hours before a Pinault is alleged to have bro- The implications for Pinault To e-mail reporters and editors at WWD, the address is fraud trail that opened in Los ken the law by covering up for remain unclear, and he could [email protected], using the individual’s name. Angeles on Tuesday. Lyonnais after his family holding still face litigation in the civil WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 A spokeswoman for Pinault company, Artemis, bought Execu- suit, which claimed some $3.7 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. declined comment, but the en- tive Life’s junk bond portfolio billion in damages. VOLUME 189, NO. 35. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one trepreneur is believed to be and made handsome profits. Pinault has denied any guilt, additional issue in June; two additional issues in April, May, August, October, November and December, and three additional pursuing his own negotiated Tuesday’s agreement was but he last year paid $185 mil- issues in February, March and September, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL deal in the ongoing Executive with a French government lion to settle a federal case, also OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Life affair. agency called CDR, which is linked to Executive Life. Chairman; Steven T. Florio, Vice Chairman; Charles H. 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