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1 TALES OF A LEGEND AMANDA MACKENZIE STUART HAS WRITTEN THE FIRST FULL-LENGTH BIOGRAPHY OF DIANA VREELAND. PAGE 9 WWD MONDAY, DECEMBER 17, 2012 WOMEN S WEAR DAILY $3.00 Earth Bound Monique Lhuillier may have looked to the cosmos for the shiny stuff in her pre-fall collection, but she quickly brought things down to earth with some stripped-down, chiced-up day looks, like this terrific jacquard sweatshirt knitted to crocodile effect, paired with a crinkled jacquard skirt. For more on Lhuillier s lineup, see wwd.com/ runway. For more pre-fall, see page 6. PHOTO BY KYLE ERICKSEN COLLECTIONS PRE-FALL 2013 HEADING WEST JOSEPH OPENS ITS SECOND U.S. STORE, IN L.A. PAGE 8 DOWN TO THE WIRE Authentic, Carlyle Said In HMX Running By VICKI M. YOUNG and JEAN E. PALMIERI HMX GROUP S bankruptcy-court auction today is expected to be primarily between two bidders, with stalking horse Authentic Brands Group facing off against Bluestar Alliance and its backer, The Carlyle Group. While the team of Bluestar and Carlyle was initially believed to be interested in putting in a bid that includes a liquidation of the HMX factories, industry sources said the team now believes it needs to keep manufacturing in the U.S. One financial source said Carlyle has operators it could pull in to run the business, and therefore doesn t need to keep the current management team headed by chief executive officer Doug Williams or the proposed financing partner in Authentic Brands stalking-horse bid, Salus Capital Partners. Keeping HMX s factories has been a hotly contested issue in both its bankruptcy and that of its predecessor firm, Hartmarx Corp. Between both bankruptcies, the jockeying for position has run the gamut from lawmakers to union leaders. Even pre-petition and post-petition lenders pushed for a say to ensure payment of claims. In trying to save jobs, the legal maneuvering around the bankruptcy took a nasty turn last week. Lawyers for the unsecured creditors committee filed an objection last week that alleged the actions of ceo Williams, Salus and Authentic were engineered from the beginning to ensure a favorable result for the three. The objections and allegations did not include any professionals who are providing services to the debtors. Other allegations include not providing information on a timely basis when requested, as well as supposedly creating a scenario where potential bidders couldn t determine whether alternative financing was allowed or whether bids could include other operators. The bankruptcy-court document did note SEE PAGE 8 Handbags Regain Mojo By RACHEL STRUGATZ NEW YORK Handbags are catching up with shoes. Footwear might still drive the accessories category with respect to innovation but, in terms of retail, handbags are regaining momentum. Retailers and brands are reporting healthy handbag sales, noting a renewed interest in the category. Shoes have monopolized the accessories spotlight the past few years with the growth of brands like Christian Louboutin and Jimmy Choo and an influx of new designers, from Brian Atwood to Charlotte Olympia and Nicholas Kirkwood. Now, bags are back for a host of reasons from a more confident consumer, a necessity for techcessories to tote around multiple devices and an emergence of contemporary designers delivering luxury handbags at a new price point. There s going to be a return to the handbag business and this is the start of it, said Saks Fifth Avenue s fashion and co-branding director of accessories Elizabeth Kanfer. With the focus on footwear the past five years, and a slow decline of the It bag, we are excited for the focus on handbags. But this time, she believes, it might not be about the It bag a phenomenon that took shape in the late Nineties driven by a fascination with monogrammed Louis Vuitton Speedy, Dior Saddle, Marc Jacobs quilted Stam, Balenciaga motorcycle and Yves Saint Laurent Muse bags. Where is the breakout handbag designer that is like Sophia Webster or Tabitha Simmons? Kanfer asked. She added that her team at Saks is on a perennial SEE PAGE 7

2 2 WWD MONDAY, DECEMBER 17, 2012 Dolce, Gabbana Trial to Proceed By LUISA ZARGANI MILAN The Dolce and Gabbana trial will go on. On Friday, judge Antonella Brambilla rejected the objections presented by the lawyer acting for Domenico Dolce and Stefano Gabbana, seeking to dismiss tax-evasion charges against the designers and several of their business associates. Brambilla scheduled the first three dates of the hearings in the new year, on Jan. 30, Feb. 6 and Feb. 20. Witnesses from the Guardia di Finanza, an Italian police force under the authority of the national minister of economy and finance, and the Agenzia Delle Entrate, the country s revenue service, will be asked to testify during those first three hearings. The request to overrule all the judicial documents and procedures against the designers, who are charged with omitted and unfaithful earnings declarations, was made during the first hearing of the trial, in a Milan courthouse on Dec. 3. Sonia Rykiel Sets Strategy for Growth By JOELLE DIDERICH After the hearing Friday, the designers lawyer Massimo Dinoia was unfazed by the judge s decision to overrule the objections he had laid out, and said he was calm about the final outcome of the trial. He once again said the tax authorities made an abstract and hypothetical calculation of the sum related to the 2004 sale of the Dolce & Gabbana and D&G brands to the designers Luxembourgbased holding company Gado Srl. There is no foundation to the case, said Dinoia. Prosecutor Gaetano Ruta has lined up 15 witnesses to testify in the trial. The designers and the other defendants could also be questioned during the trial, but they are not obliged to and can delegate their lawyers. None of the defendants attended either hearing. Three high-profile fiscal consultants have been tapped to provide evidence in the defendants case, according to sources. The designers were originally absolved of the claims by a lower court in April 2011, but the Italian Supreme Court in November overturned that decision, saying that tax avoidance, or tax mitigation, Looks from Sonia Rykiel. on an earnings declaration is a criminal offense under the law. Following investigations that began in 2008, initiated by the Guardia di Finanza, both designers were charged with alleged tax evasion totaling 416 million euros, or $540 million at current exchange, related to the sale of the Dolce & Gabbana and D&G brands to Gado Srl. The Italian tax police reportedly consider Gado essentially a legal entity used to avoid higher corporate taxes in Italy. A separate criminal probe into supposed tax irregularities at the Dolce & Gabbana Group was part of the case dismissed in April. Those accusations address unpaid taxes of 200 million euros, or $258.7 million. In April 2011, deeming there was no foundation for a trial, judge Simone Luerti dismissed the charges against Dolce and Gabbana and five other defendants, including Dolce s brother and board member, Alfonso Dolce, and managing director and board member Cristiana Ruella. That ruling was overturned by the Italian Supreme Court in November. PARIS As it prepares for the arrival of new artistic director Geraldo da Conceicao, French fashion house Sonia Rykiel has set in motion a threepronged strategy for development under new majority owner Fung Brands Ltd. Chief executive officer Eric Langon, who joined the company in April, said his priorities were to modernize the main Sonia Rykiel collection, reposition the Sonia by Sonia Rykiel contemporary line and grow the share of accessories. The Rykiel woman is desirable, intense, playful and intelligent, he told WWD at the company s headquarters on Boulevard Saint-Germain, where construction workers could be heard putting the finishing touches on da Conceicao s studio on the floor above. The designer, who has worked at Louis Vuitton, Miu Miu and Yves Saint Laurent, will show his first collection during Paris Fashion Week in March. We want to emphasize the modernity of the Rykiel woman, not only in terms of this typically Parisian chic, but also in terms of values, which are now very modern and international, Langon said. He noted that da Conceicao, a Canadian national born in Macau, would bring a distinctly cosmopolitan outlook to the main Sonia Rykiel line. Langon has split the creative team, setting up a separate office for the Sonia by Sonia Rykiel line to better keep their identities distinct. Sonia by Sonia Rykiel was somewhat cannibalizing the main Sonia Rykiel line, he noted. Customers were turning away from the main collection in favor of Sonia by Sonia Rykiel, because Sonia by Sonia Rykiel was seen perhaps as a younger, more accessible and very qualitative expression of the values of Sonia Rykiel. Langon said distribution and merchandising of the two collections would be revised to make sure they don t sit side by side within the same point of sale, though he was reluctant to define separate target groups for the lines, saying a woman could wear both at different times. Sonia Rykiel s new product and merchandising director Sophie Templier, formerly at Chloé, is also overseeing efforts to grow the leather goods business, which has lost steam since the success of the rhinestone-studded Domino bag a decade ago. Langon said it was unlikely the category would ever account for the lion s share of revenues at Rykiel, as is the case at many luxury brands. That is not our objective. But since leather goods is a legitimate product category in the Rykiel universe, there is definitely enough room to double or even triple its share of the house s total revenues, he said. Last year, Sonia Rykiel posted sales of about 90 million euros, or $125.5 million at average exchange rates. In February, Fung Brands Ltd. acquired 80 percent of the business, leaving the founding family with a 20 percent stake. The executive said plans for expansion in the U.S., where the brand is carried in about 20 points of sale, were on hold until it has restructured its offer. Likewise, its e-commerce site has been shut down, pending a relaunch scheduled for November Langon has appointed a digital director, noting that Sonia Rykiel is so far absent from social-media sites. I want to implement a content-oriented digital strategy, because this house is very rich in content. It has a lot of depth, and it s important we share this history on the Web in a way that gives it a modern spin, he said. THE BRIEFING BOX IN TODAY S WWD Kirsten Dunst in Dior, Kristen Stewart in Erdem, Garrett Hedlund in Gucci and Sam Riley in John Varvatos at the On the Road screening. HMX Group s bankruptcy-court auction today is expected to be primarily between Authentic Brands Group and Bluestar Alliance and its backer, The Carlyle Group. PAGE 1 Footwear might still drive the accessories category with respect to innovation but, in terms of retail, handbags are regaining momentum. PAGE 1 ON WWD.COM WWD.COM Objections presented by the lawyer acting for Domenico Dolce and Stefano Gabbana on Friday, seeking to dismiss taxevasion charges against the designers, were rejected. PAGE 2 As it prepares for the arrival of new artistic director Geraldo da Conceicao, French fashion house Sonia Rykiel has set in motion a three-pronged strategy for development. PAGE 2 A quarter century after opening its first U.S. store, in New York, Joseph has added a second American unit, on Robertson Boulevard in Los Angeles. PAGE 8 Diesel s Renzo Rosso has earmarked 5.5 million euros, or $7.2 million at current exchange, to sponsor the restoration of Venice s most famous bridge, the Ponte di Rialto. PAGE 8 The first full-length biography of Diana Vreeland, Empress of Fashion: A Life of Diana Vreeland by Amanda Mackenzie Stuart, is just out from HarperCollins. PAGE 9 Vogue Germany tapped Bruce Weber as creative director for its January Sex & Sensibility issue, turning over the entire 84- page editorial well to the American photographer. PAGE 9 A cluster of designer names touched down in Japan last week, including Acne creative director Jonny Johansson and Rag & Bone designers David Neville and Marcus Wainwright. PAGE 11 Jimmy Choo celebrated its second collaboration with nonprofit DKMS, which works to raise awareness for blood cancer, at the New Museum in New York City Wednesday evening. PAGE 11 EYE: Kristen Stewart, Sam Riley and Garrett Hedlund feted their film, On the Road, with a Grey Goose-sponsored screening at the SVA Theatre and an after party at the Top of the Standard. For more photos, see WWD.com/eye. TO REPORTERS AND EDITORS AT WWD, THE ADDRESS IS USING THE INDIVIDUAL S NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT 2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 204, NO MONDAY, DECEMBER 17, WWD (ISSN ) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, October and December, and two additional issues in February, March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. 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If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA or call 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, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. PHOTO BY STEVE EICHNER


4 4 WWD MONDAY, DECEMBER 17, 2012 Dean Quinn s wool and silk vest and Just Cavalli s rayon and elastane skirt. Araks silk georgette vest and pants. Vest in Show Rebecca Taylor s silk vest and beaded silk dress. Rebecca Minkoff s cotton stretch denim vest and Vena Cava s cotton and Lycra twill pants. PHOTOS BY JOHN AQUINO; STYLED BY ANTONIA SARDONE


6 6 WWD MONDAY, DECEMBER 17, 2012 Naeem Khan Pre-Fall 2013 Alice + Olivia Temperley London PHOTOS BY JOHN AQUINO AND KYLE ERICKSEN FOR MORE PRE-FALL COVERAGE, SEE WWD.com/ runway. Temperley London: There s a smoky Parisian feel to it, a bit like Loulou de la Falaise but more rough and ready, like us, said Alice Temperley of her Temperley London collection. With references to Fifties couture, the South of France and Hitchcock heroines, there were fluffy mohair knits, full skirts in pleated organza and rich broderie anglais. Feathers were the leitmotif, appearing printed on dresses and blouses and etched into an oxblood red leather jacket. Naeem Khan: Naeem Khan focused on shorter dresses because he was thinking as much about dressy day looks as his more expected, dramatic evening gowns. He also sees this season as a continuation of spring rather than a leadin to fall, so he worked fabrics and beading to a lighter effect, and focused on simple shapes. One charming example: a black-and-white capsleeved sheath delicately embroidered with leather and pearls. Alice + Olivia: London called and Stacey Bendet answered. Her Alice + Olivia lineup was all nods to Sixties British suiting and rebellious youth with a dash of her trademark sparkly and playful fare. Stripes and plaids came oversize in bright hues and black-and-white on day dresses and slim suits, the latter with cropped pants to show off Bendet s burgeoning shoe collection. Leather bags from the new Dressage collection. Riding on the Coattails of Dressage PHOTO BY KYLE ERICKSEN DRESSAGE, THE equestrian sport sometimes referred to as horse ballet, is often associated with the upper echelons of society. It s a pastime of the rich that drew national attention last summer when Mitt Romney s horse Rafalca competed in the Olympics. The elite nature of it all is exactly why Charles Chehebar bought the rights to the name Dressage for his new luxury handbag collection, which is launching for spring. Dressage is arguably the most elegant sport in the world today, said Chehebar, the label s founder and creative director. Our luxury brand really embodies that sport with its character and details. There s so much true heritage and authenticity that we clearly translate into our product. Indeed, the equestrian look has long been prime for reinterpretation at the high fashion level. Hermès and Gucci have a steeped history of horsey references. Chehebar s bags are classic in their design with understated shapes totes and small, refined cross-body bags in polished napa, calf and saddle leather with gold hardware and braided trims. The line retails from $800 to $2,000 and is produced in Florence. Chehebar has considerable experience in the accessories market. His father, Abe Chehebar, is president of AHQ-Accessory Headquarters LLC, formerly Accessories Network, where Charles worked for 10 years. Accessories Network managed the licenses for brands such as CK Calvin Klein and Karl Lagerfeld, and worked closely with Ghurka. Chehebar decided to launch his own collection a year ago, when he felt the market lacked an authentic American luxury brand. We did some digging and found out the name Dressage was available, said Chehebar. We felt it s a perfect segue for luxury leather goods, as well as a lifestyle brand in the future. It has all the seeds. JESSICA IREDALE

7 accessories Handbags Back in Spotlight A 10 Crosby Derek Lam handbag for pre-fall. {Continued from page one} lookout for emerging handbag brands that mirror the fashion and innovation seen in footwear. The handbag market is gaining some of its traction back from footwear in part because retailers such as Barneys New York and Macy s have invested in revamped accessories floors where handbags are displayed, and both designer and contemporary offerings are resonating with consumers. For Kurt Salmon retail analyst Nancy Liu, it isn t so much that the handbag business was lagging as it was the emphasis and press surrounding footwear over the past few years. Many retailers Saks, Barneys, Macy s and Bloomingdale s among them have made significant investments on entire floors dedicated to shoes, as well as the advertising and promotion surrounding such investments. Liu would be worried if these retailers didn t see a corresponding lift in footwear sales. Retail is a cyclical industry though, and Liu believes it s time for interest in another category. She cited the recent activity of contemporary designers accessories businesses such as Phillip Lim and Alexander Wang as having filled a need for a much needed handbag price point from $800 to $1,000. She predicted those designers also could propel a spike in handbag sales in If you looked at luxury price points prerecession, this is where entry designer handbags were. Now, entry designer bags are about $1,500, Liu said. Macy s Herald Square location here introduced a reformatted women s accessories floor in November, part of a $400 million renovation, that includes shops-in-shop for Louis Vuitton, Coach, Dooney & Bourke and Michael Kors, with Gucci, Burberry and Longchamp opening through early January. Michael Kors officially opened its shop-in-shop in Macy s earlier this month, carrying both collection and Michael Michael Kors. The 1,897-square-foot space will also house the brand s new digital experience, Kors Concierge, which contains a floor to ceiling LED display (playing video of ad campaigns) and two 32-inch touchscreens for customer use. Shoppers can use these to devise shopping lists, which they can either print out in-store, have sent to their phone with a code they retrieve at checkout or share via social media. Handbags are on fire; [we ve had an] amazing year in handbags, said Patti Ongman, Macy s executive vice president and general merchandising manager, center core. She said the uptick began about 20 months ago, with a good balance between moderate and higher end handbags selling well at the retailer. She credited the addition of color, as well as the customer being driven by technological needs, as driving sales in the sector. We re seeing a lot of totes, mini bags, wristlets and phone holders really anything that is giving the millennial customer the ability to carry all of her technology with her. Even if she s using it socially, she still wants her tech pieces with her. She also wants to be polished for work, so any bag with a lot of functions or storage for an ipad or a computer are really popular at every price point. It s not just designer, it s not just moderate, it s across the board, Ongman said. Coach opened a 2,000-square-foot area on Macy s Herald Square s new accessories floor at the end of October. Nearly double the size of the previous installation, this marked the first time the brand premiered its free-floating space retail concept at the department store level. We re sitting on a handbag floor and we have a story anchor in bags, but we re surrounded by strong presentation, small leather goods and outerwear, for a higher level of merchandising, Michael Tucci, Coach president, North American Group, told WWD in October, adding that traffic and sales for its opening weekend surpassed projections. For the holiday season so far, women s bestsellers include the Legacy Duffle, the Legacy Candace Carryall and the Madison Leather Isabelle. Men s include the Bleecker Legacy Leather Weekend Tote, the Bleecker Leather Commuter and the Bleecker Legacy Leather Courier Bag. At Barneys New York, Sarah Blair, vice president and divisional merchandising manager, women s accessories, said the store has experienced a strong leather goods business for the past year. The holiday season has pushed sales even higher so far, in addition to an expanded leather goods floor at the Madison Avenue flagship here. According to Blair, the business is driven by heritage collections such as Goyard, Valextra and Delvaux and fashion houses like Celine, Givenchy and Chloé. Many brands across all realms are achieving positive growth, Blair said. Recent launches of Zagliani, Mark Cross and Rag & Bone are exciting highlights within our portfolio. This fall, Harrods doubled its accessories space from 20,000 to 40,000 square feet, now occupying eight rooms, compared with four previously. Among the recently added shop-inshops is 3.1 Phillip Lim, Stella McCartney, Pierre Hardy, Rochas and Coach. Although Simon Longland, general merchandise manager for accessories at Harrods, notes that all accessories categories have substantially increased during the past five years, it s the handbag category that was the biggest driver in retailer s recent expansion. Luxury accessory products are a key driver for our business at Harrods, which resonate particularly well with our clients in regards to exotics and seasonal colors. Runway looks are extremely popular; however, bestsellers are the iconic styles from each house. Exclusive, limited-edition and unique pieces prove extremely popular as we strive to offer the Harrods client a point of difference, Longland said. He added that technology accessories have witnessed extreme growth as well. He s also witnessed demand for contemporary luxury bags that retail at about $1,200 right in the middle of average luxury and diffusion collections. Derek Lam s diffusion line 10 Crosby Derek Lam unveiled handbags in September for the spring season, which will hit retailers such as Bergdorf Goodman, Neiman Marcus, Shopbop and Intermix early next year. Derek Lam chief executive officer Jan-Hendrik Schlottmann estimated that accessories eventually could become 50 percent of the Handbags are on fire. PATTI ONGMAN, MACY S INC. business for 10 Crosby in the near term. This is similar to 3.1 Phillip Lim and Alexander Wang, which have both seen a large percentage of sales come from their accessories businesses. Wen Zhou, ceo of 3.1 Phillip Lim, projected that accessories will comprise 35 percent of overall business for 2012, with this going up to 40 percent in 2013, and Wang said in October that a third of his business comes from just handbags and thinks this will jump to 50 percent in the next few years. Prices for 10 Crosby are strictly in the contemporary range retailing from $325 to $595, with canvas bags starting at $145 significantly less than Lim and Wang s handbags. Lim and Wang each have styles that surpass the $1,000 mark, falling into a high contemporary or entry designer group that is fast emerging as the sector s new modern luxury category and replacing what was formerly the entry price point for designer handbags. Lam s diffusion line will be housed on Bergdorf s 5F floor alongside bags from Lim, Acne, Theyskens Theory, Michael Kors shop-in-shop at Macy s Herald Square. Jérôme Dreyfuss and Khirma Eliazov and on the main floor at six Neiman Marcus doors. Saks unveiled an exclusive, elevated Furla collection in October in-store and on saks.com, as well as a capsule collection of the PVC Candy Bags, currently the biggest push for the brand as it looks to bolster its U.S. presence. Tommaso Bruso, Furla USA, Inc. president and ceo, said the company has seen 15 percent growth for 2012, noting that business in the States has doubled from 2009 to Domestic and European e-commerce sales on furla. WWD MONDAY, DECEMBER 17, WWD.COM com have increased by 400 and 100 percent, respectively, in the past year. Furla s U.S. retail business has seen a 30 percent increase in growth year over year. According to Bruso, Miami s business alone ballooned 200 percent from 2010, and in the same time, the collection went from being carried in 10 Nordstrom doors to all 117 of the retailer s full-priced units (as well as 27 Saks Fifth Avenue and more than 30 Bloomingdale s locations). Since the Italian company brought on creative director Fabio Fusi in 2009, the look and feel of the brand has changed. Now offerings are more trend driven and sophisticated, yet still falling within a contemporary retail price point that averages around $500. Certain satchels go up to $750 and the bestselling Olympia top handle bag is $398. Bruso said the brand is especially keen on using the two-year old Candy bag as the vehicle to make Furla as well known in the U.S. as it is worldwide. Each of the translucent bags is made from a mold and start at $198 for the smallest Cookie size. Larger versions can range from $228 to $248 and more elaborate styles such as the limited edition ones sold at Saks New York flagship with exotic skins, feathers or oversized studs and gems can range up to $798. At Holt Renfrew, senior vice president and general merchandising manager Pat di Bratto maintained that the store has had good traction in handbags, with low double-digit growth (and much higher for some designer handbag brands), but footwear has seen a stronger increase of 21 percent year to date, which is on top of 20 percent growth for In addition to the It bag craze softening, di Bratto believes that consumers seeking investment pieces is the primary reason the category is experiencing growth at the luxury end. She described sales of Fendi s Du Jour tote and Celine s Luggage and Trapeze bags as off the charts. The launch of Rag & Bone s Pilot bag has also performed well, she added, noting that a group of affordable luxury brands like Michael Michael Kors and Kate Spade continues to become increasingly popular with shoppers. It s investment purchasing LAM AND KORS PHOTOS BY THOMAS IANNACCONE Furla s Candy bag for pre-fall. for a customer that isn t based on fad. It creates a healthy handbag business when they re buying throughout the collection, versus a brand being driven by one item only, di Bratto explained. The design houses have restrategized their offerings to include price architecture and lifestyle within their collection. We always love It bags, but what s emerged is a healthier leather goods business. The retailer will roll out the first of a new store prototype in September 2013 with a footwear and leather goods department that will be four and two-anda-half-times the size of the current departments, respectively. A big strategy within is the emphasis on footwear and handbags, di Bratto said.

8 8 WwD monday, december 17, 2012 Authentic, Carlyle Seen Vying for HMX {Continued from page one} that one alternative financing provider option is CIT. One objection also said the debtors and management refused to allow an extension of the deadline to submit bids, even though there in fact was a one-day extension to Friday at 5:15 p.m. EST from Thursday at 5:15 p.m. EST. The stalking-horse bid is structured so that Authentic owns the intellectual property of HMX s brands, and separates out the operating arm to a company managed by Williams. Salus provides the financing for the operating division. To be sure, the allegations are just that there s no lawsuit, and neither Williams, Salus nor Authentic are defendants in any case. Williams said, Management and the debtors professionals have provided all the information that has been provided. Fundamentally, we believe we have provided a fair process for everyone. The creditors committee is exercising its prerogative and the [bankruptcy court] judge will have to make his decision. Executives at Salus could not be reached for comment. Contacted at home over the weekend, James Jamie Salter, ceo of Authentic Brands Group, said the objection filed on behalf of the unsecured creditors was an attempt to slow the auction process down and force Authentic Brands to raise its bid in order to obtain control of the company. However, Salter said it s unlikely he will increase his offer. He added: Made in America is really important and anybody who buys it better make sure those factories continue to operate. He said HMX needs help on the restructuring side, which is something we re really good at. It s not just about buying the IP [intellectual property] By Rachel Brown LOS ANGELES A quarter century after opening its first U.S. store, in New York, Joseph has added a second American unit, on Robertson Boulevard in Los Angeles. We felt the time was right to open a store in L.A., because we wanted to increase our exposure on the West Coast and have the opportunity to offer the full Joseph collection, said Louise Trotter, creative director of Joseph. The high visibility on a block that has shops from the likes of Paul & Joe, Tory Burch and Alice + Olivia made Robertson ideal for Joseph, and the brand also gravitated to the street s mix of local and international visitors. During a trip to the store, the salespeople noted that most customers at the store are already familiar with Joseph. I think Joseph is recognized internationally and our understated style has an appeal to women everywhere, said Trotter. We believe the customer exists in L.A. as much as New York, London and Paris. For the past four years, Joseph has been redoing its stores in a minimalistic and organic manner, and the Los Angeles store follows that direction. Aside from gray concrete floors and displays, the 2,500-square-foot space, designed by Raëd Abillama, is awash in white on its walls, ceiling and asymmetric metal shelving, as well as its exterior, which is punctuated by black signage. We wanted to create a clean atmosphere that showcased the clothes and didn t take over the merchandise, explained Trotter. The merchandising in the Los Angeles store reflects Joseph s strategy to grow sales outside of key items. Although its known for pants, knitwear and shearling, Joseph has put full collections on racks front and center at the store to raise their awareness with customers. Key items, most notably pants, maintain a large presence in the store, on shelves along its walls. The old model was much more about key items. You would have key-item displays, said Trotter. We still do that, but it was an intentional thing that we wanted to be more of a collection business and less of a key-item business, but financing the company on day two. Are they [Bluestar] willing to do that? You can put a lot more money out up front if you don t have to finance the company going forward. We re hoping that our bid will prevail, but we won t bid against a liquidator. Bankruptcy professionals said the objection wouldn t delay the auction that s scheduled for today. The expectation is that the judge in the case will issue some clarity on procedures in the morning, before the auction, such as guidance or rules to ensure greater transparency in the process. The objection also noted that it was hard to determine the value of the assets, and that they may have been undervalued in the stalking-horse bid. Currently, the Authentic bid is for $72.3 million. Should Authentic lose to another bidder, it gets a $2.2 million break-up fee. In the bankruptcy auction process, the winning bidder isn t necessarily the one with the highest dollar offer. The criteria is for the best offer, after evaluating all the variables in the bid. In the HMX case, the best offer possibly a sale of the company that also preserves jobs could very well be one that entails the highest dollar amount, provided there is a much-hoped-for spirited auction between Authentic and the Bluestar-Carlyle team. Such a scenario would drive the price up, ensuring a greater return to unsecured creditors and the HMX estate. It was unclear who else might be bidding. While some expect Iconix Brand Group might step up, it couldn t be determined whether it had submitted qualifying paperwork to HMX s financial advisers. Yucaipa Cos., as well as W.L. Ross & Co., are not expected to be involved in the bidding, although the two had early on accessed the data room as they contemplated whether to further pursue a bid. Inside the new Joseph unit on Robertson Boulevard. Joseph s Second U.S. Store Opens in L.A. and the store was created to showcase the items in that way. In addition to building its collection business, Joseph is forging ahead with accessories. The brand has dabbled in handbags but is launching a complete bag line next spring. So far, we have been doing a small amount of accessories to complement the look from a styling point of view, and we see there is really an opportunity to grow it, said Trotter. Joseph opened a total of three stores this year, according to Trotter, who said the brand is looking to open another store in the U.S., in SoHo, the New York neighborhood where Joseph previously had one. We are steadily growing each year, and we plan to keep developing in key markets, she said. Joseph has 100 stores worldwide. Trotter declined to forecast sales for the Los Angeles store or discuss Joseph s overall revenues. Onward Holdings the Tokyo-based fashion conglomerate that owns or licenses such international brands as Jil Sander, Sonia Rykiel, DKNY, Tocca, Missoni and Paul Smith bought Joseph in Photo by STEFANIE KEENAN By LUISA ZARGANI MILAN Diesel chief Renzo Rosso has earmarked 5.5 million euros, or $7.2 million at current exchange, to sponsor the restoration of the most famous bridge in Venice, the Ponte di Rialto, through his holding Only the Brave Srl. Work on the 16th-century bridge is expected to last 18 months and be completed by the end of February The city of Venice will be in charge of the project and coordination of the work. There is no city in the world that is more beautiful in terms of architecture, and it s the city of love, Rosso said of Venice. It s close to my heart, where I went to university and a point of reference for me. He defined the Ponte di Rialto as the most important bridge historically, one of the world s wonders, and an international symbol which can be associated with an international brand such as ours. Rosso, whose lucky number is five, said he wanted the sponsorship to be creative, not invasive and in line with WWD.COM Rosso Sets Aside Funds To Restore Venice Bridge Renzo Rosso and Venice s Deputy Mayor for Public Works, Alessandro Maggioni, in front of the Ponte di Rialto. PARIS PPR has garnered the opinions of a group of independent experts in a bid to improve its environmental profit and loss accounting, which it introduced at sportswear firm Puma in November 2011 and plans to extend to the rest of its brands by The accounting measures translate the environmental impact of the French group s products into a figure in euros and cents. In addition to making recommendations of a technical nature, the experts found that the methodology was complex, meaning that it was unlikely to be picked up by other companies unless a more accessible model is developed, PPR said in a summary of the consultation. The E P&L was seen to have great potential as a decision-making tool, but it was noted that no one had yet seen his artistic and innovative views. Asked how he would respond to those who might see the project as merely part of a business strategy, Rosso said he was proud that his company could contribute to the preservation of beauty. Let s give back to the territory. A modern entrepreneur should help, not replace, the public administration that is often overburdened with costs, he said. The vice Mayor of Venice, Sandro Simionato, rebutted naysayers, saying that the city of Venice is ours, but also of the world. Therefore, it is a duty for us, as temporary administrators, to do everything possible to maintain it and improve it. Only the Brave controls Diesel, Maison Martin Margiela, Viktor & Rolf and Staff International. Rosso is the second leading Italian entrepreneur to help fund the restoration of a major Italian landmark. Diego Della Valle of Tod s earlier this year donated 25 million euros, or $32.9 million at current exchange, to help pay for the restoration of the Colosseum in Rome. PPR Seeks to Improve Eco-Cost Calculation the forward game plan for how this will be harnessed. The reasons behind this are the need for standardization of the principles of the approach and, in particular, how uncertainty is dealt with, it said. The report called for a manual or cookbook to guide businesses through the process and help standardize data from different companies. The information could be used as an indicator of risk, and influence investment and project appraisal decisions, it noted. Marie-Claire Daveu, chief sustainability officer and head of international institutional affairs at PPR, and Jochen Zeitz, director and chairman of the board s sustainable development committee, said they were looking at ways of incorporating these views and recommendations into their methodology. Joelle Diderich

9 WwDSTYLE Road Work: Kristen Stewart brings out her inner bookworm. Page 11 View of Vreeland The first full-length biography of fashion legend Diana Vreeland, Empress of Fashion: A Life of Diana Vreeland by Amanda Mackenzie Stuart, is just out from HarperCollins. Here, Vreeland in her scarlet office in In a magazine or a museum show, she once said, I m looking for a suggestion of something I ve never seen. In her decades at Harper s Bazaar, Vogue and the Costume Institute of the Metropolitan Museum, she always seemed to provide just that. For more, see page 10. PHOTO BY PETER SIMINS Memo pad BRUCE ALMIGHTY: Vogue Germany tapped Bruce Weber as creative director for its January Sex & Sensibility issue, turning over the entire 84-page editorial well to the American photographer. Weber, in turn, called in Downton Abbey stars Michelle Dockery, Rob-James Collier, Lesley Nicol and Elizabeth McGovern to embody the theme in opening then and now fashion spreads. Among the others who appear in the issue are an evocatively yet (for the most part) fully dressed Kate Upton, New York sculptor Rachel Feinstein, and screen stars Jessica Chastain and Omar Sy for a moody touch of jazz. Not to mention Weber himself, photographed by Ralph Mecke along with documentary film maker Albert Maysles for the magazine s monthly Vogue-Gespräch or Vogue Talk. Weber and his art director Bruce Weber was creative director of Vogue Germany s January issue. Sam Shahid were also given the run of the rest of the magazine, which took on a cleaner and more graphic look throughout the January issue s 220 pages. MELISSA DRIER FIGHTING BACK: Los Angelesbased American Apparel has responded to a ruling from the Advertising Standards Authority in Britain that banned one of its ads because of public complaints that it appeared to sexualize a child. It s unfortunate that the ASA has made this ruling as our models are of age and were featured in Vice magazine, a publication clearly intended for mature, fashion-forward audiences. We ll abide by this ruling as we have in the past with similar ASA decisions, but American Apparel will not be altering our classic advertising aesthetic which is internationally recognized for its artistic and social values, said the brand. In a further comment, American Apparel director of marketing Ryan Holiday said, The model [Becca] was 23 when the photo was taken in winter of 2011, and she was-continues to be the longtime girlfriend of the photographer [Henrik Purienne]. JULIA NEEL THREE FOR THE ROAD: Twenty months after its launch, the Bomoda Web site has added three newsletters to try to better inform its Chinese readership. Every Monday a global shishang edition is offered and Europe and U.S. ones are now available on Tuesdays and Thursdays, respectively. Each newsletter provides insight about what to buy and where to shop while traveling abroad. There are also fashion tips, information about store openings and shopping guides among other things. There are 45,000 Bomoda subscribers now receiving each of the newsletters and that figure is expected to climb to 100,000 in April, said chief executive officer Brian Buchwald. In recent years, many Chinese people have opted to buy luxury products overseas, especially in Europe, to the point that over 60 percent of the luxury consumption of Chinese consumers is in overseas markets, according to Bain & Co. s 2012 China Luxury Market Research Report. Bomoda s members currently do not pay a subscription fee. The company earns money by selling online advertising though Buchwald declined to name any advertisers. ROSEMARY FEITELBERG

10 10 WwD MONDAY, DECEMBER 17, 2012 The Fashion Goddess Diana As fashion editor of Harper s Bazaar, she wrote the popular Why Don t You? feature, which inspired two New Yorker parodies and endless imitations. She also suggested the iconic Popover to Claire McCardell and helped put the designer on the map. As editor in chief of Vogue, she celebrated the youthquake of the Sixties and pushed editorial fashion fantasy further than it had ever gone before. As special consultant to the Metropolitan Museum, she transformed traditionally dull museum shows of clothes by adding fantasy, drama and pizzazz not to mention period backdrops, soundtracks and even fragrances. She inspired Liza Elliott, the central figure in the 1941 musical Lady in the Dark, and Maggie Prescott, the fashion editor in the 1956 film Funny Face. Diana Vreeland, who died at 86 in 1989, was in fact the most famous fashion editor of the 20th century but, until now, no full-scale biography has ever been devoted to her. Her charming memoir, D.V., has a rather glancing relationship with the truth, while Eleanor Dwight s estimable Diana Vreeland is more of a picture book. Now Amanda Mackenzie Stuart has written Empress of Fashion: A Life of Diana Vreeland (Harper/ HarperCollins) with the cooperation of the Vreeland family. Stuart says that before she began to research her, she thought of Vreeland as a sort of scary, hip elderly lady who had fabulous exhibitions at the Met, who put Consuelo, Duchess of Marlborough, into an exhibition called American Women of Style. But when she began to delve into Vreeland s background, Stuart was fascinated. The distinctive and imaginative issues of Harper s Bazaar the editor had overseen were a revelation. This is Stuart s second biography; the first was Consuelo and Alva Vanderbilt: The Story of a Daughter and Mother in the Gilded Age. Vreeland, who was born Diana Dalziel, always had difficulties with her mother, the former Emily Hoffman, a moody society beauty whose mother was a member of the Four Hundred and a photo BY JONATHAN RING Amanda Mackenzie Stuart descendant of Francis Scott Key. Emily doted on her younger daughter, Alexandra, who was also a beauty, but considered Diana, who had a prominent nose, to be ugly and difficult. The girls nanny, Kay Carroll, disliked Diana, too. Speaking of this, Diana said, All I knew was that my mother wasn t proud of me. I was always her ugly little monster. Her maternal grandmother, Mary Weir, however, loved her intelligence and imagination, and at her death, when Diana was 16, left her a house, which she had named Villa Diana, and $20,000 for its upkeep. Diana, by force of sheer will, transformed herself into a glamorous young woman and popular debutante. In March 1924, two days before she married the handsome, dapper banker T. Reed Vreeland, her mother was named as a corespondent in the divorce case between Sir Charles and Lady Ross. Emily had been flagrantly unfaithful to her husband, Frederick Dalziel, with the British bounder Ross, among, apparently, many others. They clearly had a great affinity for one another, Stuart says of the young Vreelands. They were both absolutely fascinated by aesthetics and the appearance of things, and it drew them very close together. The young couple lived in Albany, N.Y., for several years, where they had two sons, then in London from 1929 to 1935, and Diana became a mannequin du monde, a young society woman who was able to get couture clothes at substantially reduced prices Harper s Bazaar cover with Lauren Bacall, March photo BY LOUISE DAHL-WOLFE because she wore them so well. She was a client of Coco Chanel, Madeleine de Vionnet and Mainbocher, and she became friendly with Mona Williams, Millicent Rogers, Daisy Fellowes and the Vicomtesse de Noailles. When they returned to the U.S., Carmel Snow offered Diana a job at Harper s Bazaar, and Why Don t You? was born. Many of the ideas were poached from the Europebased fashion queens Vreeland knew. (The most famous of these axioms was Why Don t You rinse your blond child s hair in dead champagne to keep its gold, as they do in France? ) Vreeland became fashion editor in 1938, and soon showed several tendencies that few who met her would suspect. One is that she was a very hard worker. She was also, Stuart notes, very good at working as part of a team. She was very good at picking people to work alongside her and help her. People who loved her found her very inspiring. She could be very, very hard on people who weren t pulling their weight or were dull very trying, as well as extremely inspiring. One of her discoveries was the young model Lauren Bacall, whom she put on the cover of the magazine. Favorite looks included bare legs and capri sandals. While still at Bazaar, Vreeland began advising Jacqueline Kennedy about her fashion choices. Vreeland s sons, T. Reed Jr. and Frederick, known as Tim and Freck, were raised by nannies, which was typical for members of their class at the time, and she was, Stuart says, a pretty distracted mother. But the most difficult thing for her sons, both of whom Stuart interviewed, was to deal with having been raised in a bubble of optimism, so that, later on, the world itself came as a horrible shock. In 1962, Vreeland became editor in chief of Vogue, replacing Jessica Daves. By then, she had long been known for her polished, stylized look and manner black lacquered hair, scarlet lipstick, pale skin with bold slashes of rouge, a very slender body in streamlined clothes, the loping gait and those gnomic pronouncements and had become almost a parody of herself. She looked like she might be the most appalling sort of b--ch, but she was not a b--ch, says Stuart. She very rarely said unpleasant things about people behind their backs. Vreeland championed clothes that reflected the new silhouette, the new line of the 20th century, whether they came from Chanel, Yves Saint Laurent, Claire McCardell, the Ballets Russes, the dance studio or the office messenger, Stuart writes. Favorite inspirations from Vreeland s past included George Sand, Isadora Duncan and Greta Garbo as Mata Hari in the 1931 film of the same name. In the early Seventies, however, the revenues from Vogue began to fall off, and Vreeland was forced out of the Diana Vreeland at 13, right, with her father Frederick Dalziel and her sister, Alexandra, at the Villa Diana. amanda mackenzie stuart She could be very, very hard on people who weren t pulling their weight or were dull very trying, as well as extremely inspiring. PHOTO BY FRANCO RUBARTELLI Veruschka in a fur hood by Giorgio di Sant Angelo in Vogue, July magazine by the powerful art director Alexander Liberman, replaced by Grace Mirabella. There was a power play, Stuart says. But there was no arguing with the sales figures. She got ahead of some readers and lost touch with others. It was Tom Hoving, the iconoclastic young director of the Metropolitan Museum, who decided to hire her to oversee the Costume Institute. Her shows, Stuart says, illustrated For more photos, see WWD.com/eye. eye the point that it was the woman who animated fashion, not the other way around. She used all her skills as a fashion editor and editor in chief to bring these extraordinary exhibitions to life, working in several dimensions, including sound and smell. Her approach, the writer adds, came as such a surprise that if you saw one of her shows for the first time, you d think you hadn t gone to a proper exhibition before. Lorna Koski

11 Fashion scoops Marcus Wainwright and David Neville. BUSY BODIES: A cluster of designer names touched down in Japan last week. Acne creative director Jonny Johansson hosted a bash Thursday night to fete the brand s new flagship in Tokyo s Aoyama district. Nicola Formichetti was among the more notable VIP guests. The following night, Rag & Bone designers David Neville and Marcus Wainwright hosted a cocktail party at restaurant Eatrip to celebrate the launch of their new handbag line, which marks the pair s first foray into bags. Carmen Kass also attended the intimate affair. We love it here, and we re looking for another space for another store, said photos by yukie Miyazaki Wainwright. The first time I came here I witnessed...the Japanese can adopt something and take it to a really weird level of excitement. And I ve seen a couple of brands just have stratospheric success and then crash, and so our plan is to just take it really easy and just learn about what was going to work here. Neville said that Rag & Bone will be opening a shop-in-shop in the Futako Tamagawa district of Tokyo in March, and they hope to open one more store in the Japanese capital later next year. Rag & Bone already has one flagship in Tokyo in the Omotesando area. On Saturday, Neville and Wainwright were due to make their way to Osaka for the first time for that city s first edition of Fashion s Night Out, which took place at Hankyu department store. KELLY WETHERILLE MARKING A CAUSE: Jimmy Choo celebrated its second collaboration with nonprofit DKMS at the New Museum in Manhattan Wednesday evening. The organization,which works to raise awareness for blood cancer, was hosted by founding family member Katharina Harf, her husband Marc Jordan and model Julie Henderson, with guests decked out in Jimmy Choo that included Poppy Delevingne, Harley Viera-Newton, Leandra Medine of The Man Repeller, Kelly Bensimon and Mia Moretti (who DJ d the event). For 10 days from Dec. 7 to Dec. 16, 15 percent of all purchases made at any of Jimmy Choo s four New York City stores was donated to the cause. The goal is to delete blood cancer, Jimmy Choo president Brian Henke said. Tonight is not about making a profit. It s about showing support. He added that the company will partner with DKMS again for a third time this spring. RACHEL STRUGATZ NEW PARTNERS: When Katie Finnegan and Erica Bell secured funding from Cameron and Tyler Winklevoss Winklevoss Capital for their startup Hukkster, they didn t know an event venue came with the deal. That s value add capital, quipped Cameron, who Thursday opened up the Hollywood Hills home he shares with his twin for Hukkster s holiday party hosted by Louise Roe. On a serious note, Bell said she and Finnegan decided to partner with the Winklevoss brothers on Hukkster, a service that alerts online shoppers when products they want are discounted, because, We were just really impressed by them. You meet with a lot of investors, but they really got it. The Winklevosses view Hukkster as part of a new wave of anti-social Web sites. Every other deal site out there, you sign up and they push things to you, and one out of every hundred you act on, said Tyler. Hukkster really empowers the shopper to pull exactly what they want. Apparently, other people get the concept. Hukkster has some 40,000 users, up from 5,000 in October, who can hukk merchandise from more than WWD MONDAY, DECEMBER 17, WWD.COM 1,000 retailers, including J. Crew, Macy s, Neiman Marcus and Nordstrom. One day, you will be able to hukk everything, even this house, said Cameron. Finnegan swooned, I d love that commission. RACHEL BROWN RENTAL DISPUTE: The Cadogan Estate the aristocratic private property empire controlled by Charles Cadogan, the 8th Earl Cadogan is reported to be taking advantage of a rent review clause in a contract to raise the rent on Harvey Nichols flagship Knightsbridge store. According to the Times of London, Dickson Poon-owned Harvey Nichols pays around 4.4 million pounds, or $7.1 million at current exchange, a year to the Cadogan Estate, which owns the land that the department store sits on, and whose portfolio comprises 93 acres of land in west London, including Sloane Street and the King s Road. The whole property empire is purported to be valued at around 3.5 billion pounds, or about $5.7 billion. The rent was last raised five years ago, seven years after the store which has existed in Knightsbridge since 1831 sold its land to the Cadogan Estate and then leased it back. The Times reported on Sunday that Harvey Nichols is resisting the latest proposed rent increase and that both parties have hired specialist advisers to handle the dispute, which is expected to go to arbitration in the new year. The conflict would be handled by an independent expert from the Royal Institution of Chartered Surveyors. JULIA NEEL eye On the Road Hits New York KRISTEN STEWART has been called many things by the press, yet there is one glaring omission on the list bookworm. On Thursday evening, the 22-yearold actress feted her latest film, On the Road, with a Grey Goose-sponsored screening at the SVA Theatre in New York, causing a blinding frenzy a veritable fireworks show of flashbulbs on the red carpet as photographers clamored to snap a picture of the starlet. Showing some major skin in a sheer Erdem number, Stewart recalled her first time reading the novel, as a freshman in high school. I d always done well in school, but I was never fueled by it. I just wanted to be a good kid, Stewart said. [Reading On the Road ] really kick-started something for me. It probably coincided with the age for me as well. It s that moment when you look up and realize that you actually choose your surroundings. A Dior-clad Kirsten Dunst capitalized on the Stewart-induced mob, successfully sneaking past her costar to take her seat inside the theater alongside guests such as Ezra Miller, Sky Ferreira and Christopher Abbott. Sam Riley, who portrays Kerouac s alter-ego protagonist, Sal Paradise, admitted that he had only read the novel after receiving the script but felt a kinship to the author nonetheless. We smoke the same brand of For more photos, see WWD.com/eye. Kirsten Dunst Kristen Stewart cigarettes, Riley said drily. Filterless Camels. After the film, guests made the ten-block trek over to the Top of the Standard, where a few brave patrons took advantage of the hotel s outdoor ice-skating rink. Keeping with the beatnik theme of the film, the Meatpacking hot spot eschewed club music in favor of a live jazz band. As additional guests, such as Alexa Chung and Ari Graynor, slipped in, trays of sliders and truffled grilled cheese made the rounds, shortly followed by a batch of crowd-pleasing Baked by Melissa cupcakes. Director Walter Salles and Riley mingled by the crowded bar area, while rumored couple Garrett Hedlund, a standout in his role as bad boy Dean Moriarty, and Dunst kept to themselves at reserved tables flanking the perimeter of the room. Given the party s strict nophotography policy, the room teemed with anticipation of a potential Robert Pattinson sighting, yet Stewart chose an even more surprising albeit, less juicy party companion: Patti Smith. The pair stayed under the radar at a table overlooking the Hudson River, where the actress appeared all smiles, predictably trading in her hot-pink Louboutins and red-carpet frock for some sneakers and a well-worn hoodie. Lauren Mccarthy photos by steve eichner For more career opportunities log on to WWDCareers.com. 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