s s Italian EYE: RETAIL: s fashion brands Couldn’t FASHION: go big in Brazil, they stay British page 3. home? designer s The year’s FINANCIAL: David Ubiquitors, Christmas Sassoon page 4. blahs hit retail looks back, shares, page 2. page 11. Women’s Wear Daily • The Retailers’ Daily Newspaper • December 30, 2008 • $3.00 WReady-to-Wear/TextileswDTUESDAY Foxy Lady Capelets, boleros and cropped jackets all play major parts in the season’s short fur story. And, for New Year’s Eve, they work with everything from pants and sleek skirts to gowns. Here, Dennis Basso’s tricolored fox jacket and silk satin shirt with Magaschoni’s silk skirt. Badgley Mischka necklace. For more, see pages 6 and 7. QUEEN BOBBI NexCen’s Bird in Hand: BY STYLED Bill Blass Brand Sold EVER; FOR UP MAKE To Men’s Firm Peacock USING By Vicki M. Young MIYAKE Ten million dollars, cash. That was the relatively small sum paid to MISUZU NexCen Brands Inc. for Bill Blass, one of BY American fashion’s most venerable names, MAKEUP signaling how far the brand has fallen since its heyday under its legendary founder. The buyer, Peacock International Holdings LLC, beat out a number of other bidders and plans initially to push the brand even further into the mainstream. ARTISTSBYTIMOTHYPRIANO.COM; The new owner hinted, however, that it FOR could one day fund a return to the runway for IRENE Blass — if, that is, it can find a designer who can adequately interpret the brand, which DANIELLE none of its previous owners have been able to BY do over the last decade. HAIR Peacock’s owners, brothers Peter and Cin See NexCen, Page10 FOYGEL/RED; AGNESA MODEL: IANNACCONE; THOMAS BY PHOTO 2 WWD, TUESDAY, DECEMBER 30, 2008 WWD.COM Weak Holiday Hits Retail Stocks By Evan Clark An estimated 20 to 30 percent drop in traffic in November and December likely led retailers Retail shares slouched toWard 2009 to pull the trigger on clearance on Christmas WwDTUESReady-to-Wear/TextilesdAY Monday after stores and analysts espied week- Eve or earlier, said Roxanne Meyer, equity ana- end sales signs that screamed 50 to 70 percent lyst at UBS Securities. FASHION off and found many chains still struggling to “We’re likely to see [buy-one, get-one] promos 6 Some of the best choices for New Year’s Eve are clear inventory. like never before, especially given that we be- short dresses or slinky separates worn with fur The Standard & Poor’s Retail Index slid 1 lieve demand for new product is only going to capelets or jackets in contrasting shades. percent, or 2.60 points, to 268.76. The Dow Jones worsen,” Meyer said in a research note. “Our Industrial Average dipped a milder 0.4 percent, biggest concern is: What happens post-holiday, or 31.62 points, to close at 8,483.93 after The when we return to a purely self-purchasing GENERAL Dow Chemical Co. said a planned $17.4 billion environment?” 1 In buying the Bill Blass brand, Peacock International petrochemical and plastics venture with Kuwait AnnTaylor Stores Corp.’s Ann Taylor business gets a well-known name with no fashion unit and a fell through. began cutting prices up to 60 percent on Dec. 17 future focused on the mainstream. In order to turn in a flat performance for and was featuring buy-one, get-one-half-off deals IT Holding SpA said it has not extended its sale 2008, retail shares would have to stage a he- on denim after Christmas, said Meyer. Such promo- 2 negotiating period with Mensun Ltd. beyond the roic 52.5 percent rally over the last two trad- tions and their impact on future profits translated end of the year, despite noises to the contrary. ing sessions of the year — something even the to a 12.1 percent drop in the firm’s shares to $9.11. most optimistic Wall Street watcher is not Other specialty chains experiencing declin- 3 After years of political, social and economic predicting. ing market capitalization included The Talbots instability, Brazil is emerging as one of the most “With gift cards down, Christmas cash down Inc., down 10.3 percent to $2.10; New York & Co. promising markets for Italian luxury firms. and consumers tapped out on their credit cards, Inc., 9.3 percent to $1.95; Aéropostale Inc., 5.5 8 RTW: Given the apprehension of American retailers didn’t get that big rush they were hop- percent to $15.61, and Chico’s FAS Inc., 5.1 per- consumers, ready-to-wear designers are clearly ing for,” said Marshal Cohen, chief industry ana- cent to $3.89. proceeding with caution into the new year. lyst at The NPD Group Inc. “It has become even more imperative in the Shoppers simply didn’t have the appetite to current economic uncertainty for retailers to 9 TEXTILES: The outlook for cotton and wool spend very much as the recession and financial be clean for the relatively weak January and producers has worsened as customers slash orders crisis clamped down on consumer confidence February selling periods,” said Eric Beder, ana- amid a massive pullback in consumer spending. and job prospects. lyst at Brean Murray, Carret & Co. The results of the annual Top 40 Online Retail Rihanna 12 Satisfaction Index shows top volume sites generally failing to meet consumer expectations. IT Holding: No Decision on Mensun Terms Classified Advertisements.................................................................................................15 By Andrew Roberts concerned the possible sale of a minority stake TO E-MAIL REPORtERS AND EDItORS At WWD, tHE ADDRESS IS in PA Investments SA, its parent company, and [email protected], USING tHE INDIVIDUAL’s NAME. MILAN — IT Holding SpA said Monday it has possible commercial and production agreements WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 not extended its sale negotiating period with in the Asian market. FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 196, NO. 134. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with Mensun Ltd. beyond the end of the year, despite Last week, credit ratings agencies Moody’s one additional issue in January, October and December, two additional issues in March, April, May, June, August and noises to the contrary. Investors Service and Standard & Poor’s down- November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division “At the moment, no decision has been taken graded IT Holding for the second time in as many of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. regarding the possibility of extending the ex- months after the fashion company asked lender Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage clusive terms beyond the Dec. 31 deadline,” IT Intesa Sanpaolo SpA to postpone for a second paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Holding said, responding to market speculation time, to April 18 from Dec. 22, a 9.4 million euro, Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES that discussions could continue into next year. or $13.2 million at current exchange, payment on TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS Earlier this month, IT Holding, which owns a loan. The original due date was Oct. 20. CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA the Gianfranco Ferré, Malo and Extè brands S&P said IT Holding’s “uncertainty over the 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all and operates under license the Just Cavalli, timing and structure of the transaction” with editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. Costume National C’N’C and Galliano labels, Mensun “makes it difficult to quantify the ben- For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online said it had reached a nonbinding agreement efits to ITH’s business and financial profiles.” at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. with Mensun regarding “a possible disposal of Also Monday, IT Holding said company direc- 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 assets,” and reportedly both parties since have tor Umberto Paolucci had resigned due to a con- advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT signed a letter of intent. flict of interest. RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, At the time, IT Holding did not disclose what The group’s share price gained 40 percent UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS.