On the Runway: Q&A with Giancarlo Giametti
In a fascinating behind-the-scenes look into the evolution of Valentino’s business over the past 45 years, his business partner Giancarlo Giametti provides his candid thoughts in a frank exchange with Cathy Horyn. He lambastes financial investors for thinking they can profit from the industry without understanding and respecting its creativity, admits to the over-eager (but lucrative) licensing period in the 80s, and provides a history of the various suitors and owners of Valentino over the years.

New York Times: A Cover Girl Who’s Simply Himself
We first came across Andre J. on Malcolm Harris’ Cut Sew and Blog which was featured on the Business of Fashion in September. Andre had been selected by Cut, Sew and Blog’s community as the face of Mal Sirrah’s collection for S/S 2008. Then, Andre J appeared on the cover of French Vogue in November and now, in this article from Guy Trebay, we learn how all of this came to happen.

Business of Fashion:  In the Financial Times, Style.com and JC Report
We have started publishing articles in other important publications. Our first article for the Financial Times on Italian investors in fashion has finally been published online along with the rest of the FT’s superb Business of Fashion supplement. We also shared a little tidbit about Daniel Craig’s disappearing act at the Walpole Awards with men.style.com. Stay tuned for upcoming articles in the December issue of L’Officiel India, a curated tour of new Fashion 2.0 sites in JC Report later this week, and our lowdown on how luxury companies should think about Web 2.0 in the next FT Business of Fashion supplement.

Photoclip courtesy of New York Times. Andre J/Carolyn Murphy cover courtesy of Paris Vogue.

Worried.

That’s what I would be if I was an investor in the Valentino business. Today, Alessandra Facchinetti was tapped to take over from Valentino when he steps down after the January 2008 couture shows.

Not only has Valentino Fashion Group lost the star designer behind the Valentino brand (apparently after coming close to signing a 3 year contract extension with him), but they have also chosen a replacement who has already failed once at taking over from another star designer, Tom Ford, after those halcyon Gucci days of the late 1990′s.

Even though their aesthetics are very different, Ford and Valentino have much in common, and this is what creates uncertainty in my mind about Permira’s choice. Valentino, like Ford, was known for his personality, creative vision and showmanship, partnering closely with his business partner Giancarlo Giammetti (like Tom Ford’s Domenico De Sole) to allow him to focus on his creativity. They both personified their brands in every way. Ms. Facchinetti does not appear to have these traits, given what we saw during her short tenure at Gucci.

Will she be able to schmooze the celebrities, royalty and fashion press with the flair of Valentino? Will she be able to keep the Valentino flame alive? It remains to be seen, but my hopes are not high.

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Following his blowout 3-day fashion fiesta in Rome earlier this summer, WWD is reporting today that Valentino and his longtime business partner, Giancarlo Giammetti, will both step down from their positions at Valentino after this season. Finally, the fashion industry’s rampant speculation about Valentino’s future role in the post-Permira world will come to an end. But, this will only make more room for the other question on everyone’s lips: Who will replace Mr. Valentino?

Zac Posen and the designers behind Proenza Schouler (which was recently injected with $3.7m of funding from Valentino Fashion Group) are amongst the names being tossed around. Over at Fashion Inc the money is on Proenza Schouler. Others are saying that Alessandra Fachinetti, the former womenswear designer at Gucci, is at the front of the pack.

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Many column inches and much screenspace has been dedicated to Valentino over the past few weeks. The Business of Fashion has been no exception to this trend. What with the acquisition of Valentino by Permira, the celebration of Valentino’s 45th anniversary at the helm of his eponymous label in Rome last weekend, and the announcement of a 45% investment in Proenza Schouler by Valentino Fashion Group this past week, there has been much to write about — or, more specifically, to speculate on.

Will Valentino continue to design for his label or was this party the beginning of the end? How well will Permira be able to manage Valentino, their first investment in luxury fashion? What will Permira do with the tiny Proenza Schouler business which they snapped up for what seems to be a low valuation? Who will replace Valentino when he goes — will it be the Proenza Schouler boys or will it be Zac Posen, who was sitting in the front row in Rome along with other designers with careers longer and reputations much larger than his? Is there any meaning behind 45 years of Valentino and the 45% investment stake in Proenza Schouler? So many questions.

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This week’s Economist ominously warns of “The Trouble with Private Equity” at a time when many in the fashion world are wondering how the infusion of private capital will impact their industry. In the last month alone, La Perla, Samsonite and Valentino have all been snapped up by private equity funds. Just today, The Sunday Times broke the news that Prada has also been in talks with private investors. (Not surprisingly, Prada has denied these reports, but it is not hard to see why this would be a natural option for Patrizio Bertelli, especially given several failed attempts at taking Prada public.)

The recent investment exuberance around fashion brands is a dramatic departure from the stance that many professional investors took even just a few years ago. Back then, they said there was too much “fashion” risk and that without predictable and stable revenue streams, their highly-leveraged (heavy on debt, light on equity) investment strategies were untenable. Now, with more and more money fighting for fewer investment opportunities, it seems much of this wisdom has been thrown out the window. 

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