Escada Spring/Summer 2011 | Source: Fanpop

How Escada Clawed Its Way Back From Bankruptcy (Die Welt)
“With Berlin Fashion Week — the first big fashion event of 2012 — just a week away, excitement is mounting in the world of clothing design. The energy is particularly high at Escada, as the Munich-based brand’s new sports line will open the catwalk show in the German capital… But after being written off as dead, the global brand is decidedly back in business. According to Sälzer, turnover for the 2011 business year was some 300 million euros — up 7% over 2010.”

Liz Claiborne cuts outlook, shares drop 12 percent (Reuters)
“Liz Claiborne Inc, which recently announced a name change, cut its outlook for the year as the company expects to push more of its cost cuts to 2013, sending its shares down 12 percent after the bell.”

Parallel lines (FT)
“When Dolce & Gabbana announced in September that its spring/summer 2012 collection for D&G would be its last, it seemed like the death knell for diffusion lines… Yet this season also sees a new generation of what might be called ‘alternative’ lines, created to stand alongside high-end catwalk collections, not exactly as peers but not as second-rate cousins either.”

A Joyous Image Maker Way Before His Time (IHT)
“Mr. Goude, an artistic multitasker as designer, illustrator, photographer and ad man, baptized each transformed graphic as a ‘French Correction’ (a play on the movie title “The French Connection”). But that witty tag only just begins to describe the genius of a man who envisaged the effects of the wired world 25 years before video cameras and computer games became part of everyday life.”

Posh punk: fashion turns the clock back to 1977 (Guardian)
“Designer Karl Lagerfeld picked up the theme by announcing last month he had a crush on so-called ‘posh punk princess’ Alice Dellal, the well-connected daughter of a British millionaire. He chose her to be the face of a spring campaign to sell his latest Chanel handbag.”

Social Media Breeds Edvertorial (WWD)
“‘It’s a new way of communicating with consumers… an editorial approach to telling your brand story, and the social-media space just lends itself so beautifully to that combination.’”

Everyday Escada? Life After ’80s Power Dressing (WSJ)
“Over the past two years, in an effort to add new customers, Mr. Sälzer cut Escada’s prices by 20%… reduced the size of the collections by a third, while increasing the number of daywear pieces.”

Power of the Cyberimage (IHT)
“‘Nicola has an extremely prophetic future radar — a kinetic link to tomorrow’s trends today. His laser-guided vision makes his extreme point of view a take-it-or-leave-it proposition.’”

Value of being ‘Made in Italy’ (FT)
“The demise of ‘Made in Italy’ have proved to be greatly exaggerated. In 2010, the country’s exports are estimated to have grown 12.5 per cent, far outpacing the 4.4 per cent rise in global gross domestic product.”

Designers Anonymous (NY Times)
“Suddenly anonymity, the kind that lets you blend into a crowd, looks pretty desirable, too. It certainly did during a week of Milanese fashion shows that were so unostentatious as to be generic. Almost across the board, designers here chose a low-key approach.”

Tommy Hilfiger | Source: Badische Zeitung

Tommy Hilfiger Dreams of Limitless Horizons (IHT)
“‘We are really living the American dream,’ Mr. Hilfiger said, ‘to be a successful brand in the States and in Europe and to steep ourselves in our heritage. But we do it with a sense of humor. We don’t take ourselves too seriously in fashion.’”

‘Cyber Monday’ Sales Show Strength (WSJ)
“Online retailers experienced a sales surge Monday, capping off a holiday shopping week in which more Americans than ever decided to skip the mall and buy on the Web. Early estimates indicated overall sales gains of about 20% from a year earlier for ‘Cyber Monday.’”

Saunders For Escada (Vogue UK)
“Jonathan Saunders has been enlisted by Escada to create a collection for its Escada Sport label. The Scottish designer will present the 20-piece offering as part of the label’s 2010 resort collection in London and Paris next June.”

Primark store sets new sales record (Independent)
“The discount fashion chain Primark achieved record takings of more than £820,000 at its flagship store in the West End of London on Saturday. The best one-day performance of any Primark shop in its 41-year history.”

Anna Sui’s new book (Telegraph)
“Sui’s anniversary book, featuring Christy Turlington, Kate Moss, Naomi Campbell and Linda Evangelista, is a walk down memory lane for the boho-chic designer.”

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.

BoF: There have been a flurry of new transactions (or potential transactions) announced in recent weeks, including those of Escada, Lacroix, and now Lanvin. Is the luxury M&A market turning a corner?

Yes, absolutely. The Escada deal is at the tail-end of the distressed transactions brought about by last year’s crisis, just like the Lacroix deal. But the significant rise of stockmarket levels since May this year has reduced the valuation gap between buyers and sellers. The M&A market came out of hibernation some time in September– deals are doable again.

BoF: After record valuations multiples of up to 13x EBITDA or more on transactions like Permira’s acquisition of Valentino and Towerbrook Partners’ investment in Jimmy Choo, are luxury investors today investing any differently, say with more reasonable expectations about valuations, returns and timing of exit?

You are right again. Private equity embraced the world of luxury goods with the view that there would be no end to the good times, spurred on by a solid economy generating an ever growing number of wealthy customers and seemingly endless reservoirs of growth in China and India. A lot of investors have been burned, and the mood is now all about opportunity investing as opposed to sector enthusiasm. A case in point is Brioni, a very good and pure play brand with excellent growth prospects, which allegedly failed to find a minority investor at a rumoured 10X EBITDA multiple.

BoF: What was the rationale for Lanvin to take investment from a private investor rather than a strategic partner from a major luxury goods group?

With Alber Elbaz at the creative helm, Lanvin has seen truly extraordinary critical and commercial success and, having turned profitable last year, is finally experiencing financial success as well. Why would Mrs Wang, who nurtured the company to success from the brink of bankruptcy, want or need to sell out to a major luxury goods group? Between her and Alber, Lanvin is a family of two. The family has just taken on a third member, a family trust itself, with a similar long-term mind.

BoF: When considering taking an investment, what are the three most important things a brand should consider?

Exit, exit, and exit. The agreed exit strategy (or lack thereof) is the natural pendant to the potential investor’s motives in making the investment in the first place. Too much time is generally spent on planning the first years of living together and not enough on exit scenarios. For the brand receiving the investment, it is very easy to get blinded by the need for cash or the potential for synergies.

BoF: Do you foresee any oft-speculated industry changing transactions actually coming to pass, like the acquisition of Hermès, Chanel or Armani, or the IPO of Prada?

While newsworthy, I don’t think the shareholder succession at Armani or perennially potential IPO of Prada would be industry transforming events. The Armani empire is a super tanker which is unlikely to change course easily, and the Prada IPO is a financial sideshow – what really matters there is the continued presence of the Miuccia Prada-Patrizio Bertelli dual engine.

The real industry changing events would be the acquisition of Hermès or Chanel, who are better guarded than Fort Knox, or of the Richemont group, and I don’t see signs of that either!

Imran Amed is Editor of The Business of Fashion

CEO Talk is an ongoing series of discussions with fashion entrepreneurs and business leaders. Previous interviews are listed below:

• Natalie Massenet, Chairman and Founder, Net-a-Porter
• Camilla Skovgaard, Shoe designer and Entrepreneur
• Susan Lyne, Chief Executive Officer, Gilt Groupe
• Priya Kishore, Founder and Creative Director, Bombay Electric
• Alex Bolen, Chief Executive Officer, Oscar de la Renta
• Jeffrey Kapelman, Chief Executive Officer, Hilldun Corporation
• Bonnie Takhar, Chief Executive Officer and President, Halston
• Sara Ferrero, Chief Executive Officer, Joseph Group
• Paolo Fontanelli, Chief Executive Officer, Furla
• Stella Iishi, President and Founder, The News Inc.
• Greg Furman, Founder and Chairman, Luxury Marketing Council
• Sarah Curran, Founder and Chief Executive Officer, my-wardrobe.com
• Brian Hill, Chief Executive Officer, Aritzia
• José Neves, Founder and Chief Executive Officer, farfetch.com
• Federico Marchetti, Founder and Chief Executive Officer, YOOX Group
• Sojin Lee, Co-Founder, Fashionair.com
• Harold Tillman, Chairman, The British Fashion Council
• Christopher Colfer, Chief Executive Officer, Alfred Dunhill

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.”