Section II JAIL FOR KING OF BLING/2 SALZER TO ESCADA/2 TradeDomestic Shows WWDWomen’s Wear DailyWEDNESDAY • The Retailers’ Daily Newspaper • June 25, 2008 • $2.00 Sportswear Cool and Collected As the end of the resort season comes into view, Ralph Lauren is in pure vacation mode. He’s doing paisley prints and bright colors — perfect for tropical getaways. To offset them, Lauren also shows plenty of calm, crisp whites, like this shrunken blazer and shorts paired with a crocheted bikini, worn with vivid accessories. For more, see pages 6 and 7. Hollywood Labor Strife: Retailers Dread Impact Of Walkout by Actors By Anne Riley-Katz attered fashion retailers and Bdesigners in Southern California are bracing for another hit — a possible strike by the Screen Actors Guild that could cripple movie and television production. SAG’s contract expires June 30 and a walkout by the union’s 120,000 members would be particularly damaging in a state where the unemployment rate is at its highest level in about five years, gas and food prices are rising, home values have imploded and the state budget deficit is estimated at $15 billion. And it would come as retailers See Retailers, Page20 PHOTO BY JOHN AQUINO PHOTO BY 2 WWD, WEDNESDAY, JUNE 25, 2008 WWD.COM Jacob the Jeweler Headed to Jail WWDWEDNESDAY Sportswear By Sophia Chabbott he “King of Bling’’ has dented his crown. FASHION T Jacob Arabov, also known as “Jacob the Turn the spotlight on a new lineup of designers who work myriad moods, Jeweler,” was sentenced to 30 months in prison. from minimal to boho to gently romantic. The purveyor of over-the-top diamond jewelry 4 to clients ranging from the worlds of sports and hip-hop to the Upper East Side and Hollywood GENERAL through his namesake fi rm Jacob & Co. will also Battered fashion retailers and designers in Southern California are brac- pay a fi ne of $2 million in a sentence handed down 1 ing for another hit — a possible strike by the Screen Actors Guild. Tuesday by U.S. District Court Judge Avern Cohn PHOTO BY MICHAEL LOCCISANO/FILMMAGIC PHOTO BY in Detroit. After shutting down in 2003 amid heavy losses and dwindling consumer Arabov, 42, was arrested on June 15, 2006, at 3 interest, Thierry Mugler is reviving its women’s wear line for spring. his fl agship on East 57th Street in Manhattan on MAC Cosmetics has collaborated with Esteban Cortazar of Emanuel charges of laundering more than $270 million in 3 Ungaro on a limited edition makeup line called MAC Emanuel Ungaro. narcotics proceeds for a Detroit-based drug ring called the Black Mafi a Family. Consumer confi dence fell to its lowest level in 16 years amid growing In October 2007, Arabov pleaded guilty to fal- 10 concerns about high prices, low home values and a tight job market. sifying records and lying to a federal agent in a MAINSTREAM: It’s a buyers’ market, as evidenced by Ellen Tracy’s new drug investigation. Arabov could have been sen- 11 owners, who said they are approached constantly by fi rms looking to invest. tenced to as much as 20 years in prison if he was convicted at trial. Domestic Trade Shows is included as a Section II in this issue. Arabov started his career in New York’s Classifi ed Advertisements.............................................................21-23 Diamond District and got his big break when Faith Evans, wife of the late rapper Notorious To e-mail reporters and editors at WWD, the address is fi rstname. B.I.G., told her husband about Arabov. The hip- [email protected], using the individual’s name. hop community became infatuated with Arabov, Jacob Arabov with Victoria Beckham in 2006. referencing the jeweler in songs and even giving WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT him cameo appearances in their music videos. and successful jewelers in the world,” said Benjamin ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. In 2004, he acquired a building at 48 East 57th Brafman, Arabov’s criminal defense lawyer. VOLUME 195, NO. 134. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, October and December, two additional issues in March, April, May, June, August and Street, which is the home to his lone store, Jacob Arabov is known for having a presence in his November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of & Co. Fans of the 22-year-old brand include Jay-Z, stores, building relationships with clients both Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided Beyoncé Knowles, Denise Rich, Madonna and famous and not. He has created custom pieces, by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/ Victoria Beckham, all of whom were taken with such as a chess set of pavé gemstones and sold an Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications the company’s selection of high-carat diamonds engagement ring to a man who had yet to fi nd a Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: and oversize watches with fi ve time zones. bride. In 2005, Arabov told WWD that 30 percent return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: “Jacob Arabov and his counsel are pleased that of his sales came from personal orders. SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE Judge Cohn recognized the amazing story of Jacob, According to Brafman, Cohn allowed Arabov INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit who at age 14 emigrated from the former Soviet until Jan. 15 to begin serving his sentence, so he www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new Union, came to the U.S. with nothing, and yet man- can develop a strategy that allows his fi rm to con- 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 and reprint requests, aged to become one of the most respected, beloved tinue operating while he is in prison. please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at 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 and services that we believe would interest our readers. If you do not want to receive these offers and/or information, 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 THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, Sälzer Named CEO at Escada BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR By Melissa Drier ship have acquired a 12 percent CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR interest in the German fashion DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY BERLIN — Escada has a new company as reported in the A SELF-ADDRESSED STAMPED ENVELOPE. chief executive, Bruno Sälzer, German fi nancial press. At pres- and an infl uential new minor- ent, Rustam Aksenenko remains ity shareholder, the Herz busi- Escada’s largest shareholder, ness family. with an approximately 27 per- In Brief After weeks of speculation cent stake. accompanied by a tumultu- Escada also said Tuesday that ous stock performance and the one of the fi rm’s banks will re- ● ROBERT TALBOTT EXPANDS WOMEN’S: Carmel, Calif.-based company’s second profi t warn- place an existing 90 million euro, men’s wear label Robert Talbott is taking steps to reinvent its ing this year, Escada said late or $139.5 million, credit facility Audrey Talbott women’s wear division with the hiring of Kim Tuesday that ex-Hugo Boss ceo set to lapse at the end of 2008 Joffrion as creative director. “What I am trying to do is build the Sälzer will replace Jean-Marc with a new 90 million euro credit next American luxury brand at a good value price point, slowly Loubier, effective July 1. Sälzer with a term until Dec. 31, 2009. and quietly,” said president and chief executive officer Richard has also been named a member Due to the planned chang- Cohen. Cohen and Joffrion both started consulting for Talbott of the board of management. Bruno es in ownership, Escada said after stints at St. John, where Cohen was ceo and Joffrion was Sälzer said, “Managing Sälzer Wolfgang Herz and the Munich brand manager. Cohen came on board permanently six months Escada is an exciting challenge, attorney Reinhard Pöllath will ago. Joffrion has been working to expand the Audrey Talbott and I am very much looking for- Tchibo and about 50.5 percent join the supervisory board.