YSL and a Naked Screen (IHT)
“With social networking the subject of the moment, Yves Saint Laurent made a bold decision to link its men’s wear to a new generation…But viewers won’t be getting even a glimpse of the perfectly cut coats, the jackets with a tendency to be rounded up at the base of the spine or even the drop-crotch pants that are a favorite of the designer, Stefano Pilati.”

Ready to Spend, but Not to Boast (NY Times)
“The Wall Street crowd is shaking off what one luxury retailer called its ‘frugal fatigue.’ Unlike earlier spending sprees, however, the consumption will be a lot less conspicuous.”

Fashion label Escada back on the catwalk (DW-World)
“After struggling with declining sales for years, Escada… is back. The Munich-based company recently presented its first collection under its new owner, Megha Mittal.”

Ralph Lauren is 2009 Mobile Marketer of the Year (Mobile Marketer)
“Polo Ralph Lauren Corp. took first place as 2009 Mobile Marketer of the Year… Ralph Lauren serves as a role model for outstanding use of mobile advertising and marketing.”

Heritage: Shake It, Break It or Fake It? (IHT)
“The Paris men’s season, which closed Sunday, was all about handling the heritage. Should you shake it, break it or fake the style of the past?”

Pierre Mallevays of Savigny Partners | Source: Savigny Partners

Today, BoF brings you an exclusive interview with a key adviser to the private family trust which, as announced today, made an investment in Lanvin, one of the hottest fashion brands in the world.

PARIS, France — Over the past few years, under the creative stewardship of industry darling Alber Elbaz, Lanvin has risen to heights that most fashion brands can only dream of, with nearly unanimous positive reviews from buyers and editors and a seemingly insatiable appetite amongst luxury fashion customers for Lanvin’s clothes, accessories and jewelry.

There was only one problem. After having invested significant sums early on, Shaw-Lan Chu-Wang, who purchased Lanvin from L’Oreal in 2001, was not injecting any more cash to grow the business. This left Lanvin’s hyper industry buzz and brand potential underexploited.

Not anymore. Today, in a press release issued by Lanvin (and as reported in WWD), it was announced that Arpège, the brand’s parent company, has received a cash injection for a minority investment representing 12.5 percent of the equity. The investment was made with a “long-term” view, apparently an indication that the investor does not plan to flip the investment for a quick profit. This is a refreshing change from some of the disastrous investments we have seen in fashion brands in recent years.

I spoke with Pierre Mallevays who advised the private family trust on their investment in Lanvin to learn more about the dynamics of the deal and the fashion and luxury market in general. Pierre is a friend and colleague, and one of the leading investment experts in the luxury space, first having worked as Head of M&A for LVMH for over seven years, and now as Managing Partner of London-based Savigny Partners, a boutique M&A advisory firm.

… Continue Reading

Escada Store, Berlin | Source: Luxuo

Megha Mittal to buy luxury fashion house Escada (Reuters)
“‘Today the insolvency administrator of ESCADA AG signed a sale and transfer agreement with one of the Mittal Family Trusts,’ the company said in a statement late on Thursday after the preliminary creditors’ committee approved the deal.”

Victoria’s Secret unveils plans for launch in UK and Europe (Retail Week)
“US fashion and beauty giant Limited Brands has outlined plans to open Victoria’s Secret stores in strategic markets including the UK as part of an international expansion drive.”

eBay goes upmarket with fashion site launch (Revolution)
“eBay has launched a website written by fashion followers in an attempt to attract more ‘well-to-do’ shoppers. The Inside Source aims to shift perceptions that eBay only offers second hand goods and last season’s threads.”

Asia boosts Hermès luxury sales (AFP)
“Sales in Asia helped boost French luxury group Hermès in the third quarter, the company said on Friday, reporting an overall 10-percent rise in sales to 452 million euros (672 million dollars).”

Seamstress takes on might of Chanel over crochet pattern (Guardian)
“A 61-year-old woman from a small town in eastern France is taking on the might of one of world’s greatest fashion houses in a case that threatens to shake up the way the industry treats its skilled workers.”

Versace Mini Cabriolet gearshift detail | Source: Cartype

Restructuring Luxury at Versace (NY Times)
“I am a survivor,” the designer Donatella Versace said matter-of-factly during a recent blitz of New York, a visit that made it appear little had changed in the world of the occupationally fabulous.”

Escada sells Primera brands (Drapers)
“Primera comprises brands Laurèl, Apriori and Cavita. Luxury German womenswear house Escada previously signed a contract to sell the three brands to investment fund Mutares AG in May but withdrew from it on Friday, citing problems with the closing of the deal.”

Matthew Williamson to Launch Menswear and E-Commerce (Elle)
“The British designer best known for his colorful collections chock full of prints, is creating his first-ever menswear line. The collection, which is due out in February, will be sold exclusively at Harrods and Matthew Williamson boutiques.”

India, China Seen as Fertile Ground for Own Luxury Brands (Khaleej Times)
“Europe’s creative heartland for top-end jewellery, watches and fashion could, in as little as 20 years, face a stiff competitive challenge from India, China and other developing countries, executives in the luxury industry say.”

Pakistan fashion week defies Taliban with non-Islamic dress (Telegraph)
“As Pakistan’s army battled religious extremists in South Waziristan, Karachi’s top designers sent models down catwalks with bare shoulders and exposed navels in an unusual display of skin in a country where most women cover up.”

Escada Autumn/Winter 09 | Source: Escada

A fashion coup (NY Post)
“There is a new player in the international bidding war for a European luxury brand. The owner of Faconnable has emerged as one of the buyers likely to scoop German fashion house Escada out of bankruptcy.”

Luxury malls languish in booming Brazil (UPI)
“Dozens of new luxury malls remain nearly empty all over Brazil. Luxury boutiques would not release sales figures but analysts and sales staff said that few high-end retailers in Brazil are turning profits.”

Valentino pins right balance with new line (Reuters)
“Italy’s Valentino has pinned down the right balance for the fashion brand whose founder retired last year with its latest womenswear collection receiving “great response” from press and buyers, its CEO said.”

Japan, Foucault, Warhol And The Luxury Economy (Agenda Inc.)
“Helge Fluch… is working on an emerging philosophy of luxury which draws from Pierre Bourdieu, Baudrillard, Foucault, and other post-modern social theorists, and more contemporary references such as Currid’s ‘The Warhol Economy’ and Kapferer and Bastien’s ‘The Luxury Strategy’.”

H&M latest: now we can sell anyone new Jimmy Choos (Times)
“The list of big names teaming up with the Swedish chain grows longer. We meet the woman who keeps collaborations coming.”

Kate Moss for Topshop Autumn/Winter 09 | Source: Topshop

Arcadia profits soar (Retail Week)
“Sir Philip Green’s Arcadia Group has reported a 13% rise in pre-tax profits, despite the recession. Young fashion brands Topshop, Topman and Miss Selfridge all had record years.”

Harvey Nicks boss says luxury needs to evolve (Drapers)
“Harvey Nichols chief executive Joseph Wan has warned the luxury sector will not recover from the global banking collapse for at least five years after the downturn prompted a “substantial shift” in the mindset of shoppers.”

The Guardian launches online fashion store (Drapers)
“Newspaper group, the Guardian News & Media, has launched an online fashion store. Guardianfashionstore.co.uk links the newspaper’s fashion editorial content and allows Guardian and Observer readers to browse over 150,000 products.”

Nanette Lepore heads up rally to save the garment center (Examiner)
“The fashion district was buzzing yesterday at a rally to save the garment center… Nanette Lepore spoke out about legislation to promote production in the garment center and honor the city zoning for manufacturers.”

Son of Escada founders mounts bid for brand (Drapers)
“The son of Escada’s founding family has teamed up with Maurizio Borletti, chairman of Italian department store La Rinascente, in an to effort rescue the insolvent German womenswear business, according to reports.”

Hermès Autumn/Winter 2009, courtesy of Hermès

Jean Paul Gaultier Said to be Leaving Hermès (Fashion Week Daily)
“Change is brewing at Hermès, and it’s starting with Jean Paul Gaultier. The designer is said to be resigning from the company; his last collection for the house is due to bow in Paris this October.”

Liberty linked to Target collaboration (Drapers)
“Liberty, the iconic London department store, is reported to be in talks with US value chain Target about a collaboration on clothing next year.”

Escada Draws Interest From Several Investors, Handelsblatt Says (Bloomberg)
“Several investors are interested in buying German luxury clothing maker Escada AG, which filed for insolvency this month, Handelsblatt reported, without saying where it got the information.“

Fashion World Moves to Damp Sale Frenzy (Wall Street Journal)
“Next week begins the media blitz for Fashion’s Night Out—a global pep rally sponsored by two fashion icons, Anna Wintour and Diane von Furstenberg.”

Selfridges on London's Oxford Street

Clothing and footwear sales in London drop back during July (Drapers)
“Clothing and footwear sales in London fell back during July as the wet weather during the month drove sales of indoor items such as homewares and furniture.”

Paper Bags as Fashion Statements (New York Times)
“It’s little wonder that, in spite of the recession, Tokyo’s closets continue to be crammed to the hilt — less so with Prada and Marc Jacobs dresses than their paper wrappers. If you can’t afford to shop, the best approximation seems to be the memory of having done so and, failing that, even the pretense will do.”

Sass & Bide to show at London Fashion Week (Telegraph)
“The British Fashion Council has today announced that Sass & Bide will show on the official catwalk show schedule during next month’s London Fashion Week. The brand, famous for its skinny style of jeans loved by trendsetters Kate Moss, Sienna Miller and Kylie Minogue, will celebrate 10 years since starting out in the capital as an underground denim label.”

Friday Fashion Flop (Wall Street Journal)
“Friday wasn’t a good day for fashion. The luxury German fashion house Escada put its U.S. unit into Chapter 11 protection, while women’s ready-to-wear designer Ellen Tracy was hit with an involuntary bankruptcy liquidation filing by several creditors.”

Nordstrom 2Q Profit Drops 27% But Raises Full-Year View (WSJ)
“Nordstrom Inc.’s fiscal second-quarter profit decreased 27 percent as the high-end clothing retailer reported lower same-store sales. But disciplined inventory and expense management helped the company report results in line with Wall Street’s expectations, and Nordstrom became slightly less downbeat about the same-store sales decline this year.”

Escada Denies Herz Brothers Turnaround Coup as Company Crumbles (Bloomberg)
“Billionaire brothers Wolfgang and Michael Herz learned the hard way today that investment prowess doesn’t necessarily run in the family. The brothers, heirs to the fortune of Hamburg coffee retailer Tchibo Holding AG, saw their investment in fashion house Escada AG crumble to little over 3 million euros ($4.3 million) from about 75 million euros in mid-2008.”

American Apparel Q2 beats St, cuts 2009 sales view (Reuters)
“American Apparel Inc posted a second-quarter profit that beat market expectations, but said it might post a full-year loss as the clothing retailer sees lower sales.”

What is Harrods’ secret? (Retail Week)
“Iconic department store Harrods provided a rare glimpse of hope in retail as it recorded a 9 percent uplift in sales in its full year accounts to £752m. It seems Harrods’ clientele are not letting the recession stop them splashing the cash.”

Even creative minds need a head for business (Retail Week)
“Fashion Fringe at Covent Garden is helping new designers learn about the world of retail and supply chain – an area many know little about.”

Escada stock prices over the last 5 days, courtesy of Google Finance

Escada Board to Meet on Insolvency After Bondholders Snub Offer (Bloomberg)
“Escada AG, the luxury clothing company whose dresses are worn by Demi Moore, is holding a board meeting today to discuss a plan to file for insolvency after bondholders rejected its financial rescue proposal.”

Micro trends making major fashion statements this autumn (Telegraph)
“Brace yourselves as ’slow-burning trends’, such as thigh-high boots and shoulder pads, hit the big time this season.”

Claudia Schiffer to address IHT’s Berlin luxury conference (MNI)
“The International Herald Tribune (IHT) has announced that Claudia Schiffer will join the lineup of high-profile speakers at its annual luxury conference where she will talk about the challenges of maintaining and protecting your global image in a digital world where fashion and celebrity media platforms have proliferated.”

Playing to the Middle (New York Times)
“Why would this perennially square department store bother to reanimate itself in Manhattan – in the sleekest, scariest fashion city in America – during a hair-raising economic downturn, without taking the opportunity to vigorously rebrand itself?”

VAT increase to cost retailers £90m (Drapers)
“The British Retail Consortium (BRC) has forecast that the return of VAT to 17.5% on January 1 will cost retailers £90m, as the Conservative party refused to rule out raising VAT further if they come to power.”