CORPORATES
Whether owing to acquisitions, executive poaching or good old fashioned management quarrels, the latest round of corporate shuffling has analysts rewriting their Rolodexes
Who: Terry Esther Cohen
Chief operating officer, Christian Lacroix
The Inside Track: Cohen’s promotion is further proof that the French brand with American owners (Falic Group) is more focused on the US market than ever. Originally a US agent for European brands such as Balmain, Nina Ricci and Sonia Rykiel, Cohen has been senior vice-president for sales and development in the Americas for Lacroix since joining two years ago. Now she will now oversee the entire commercial, production and logistical side of the company.
Who: Ernesto Greco
Chief financial officer, Ferragamo
The Inside Track: Greco’s management experience in a variety of sectors, including 16 years as CFO at Bulgari, means he is well-equipped to usher Ferragamo to its scheduled initial public offering later this year. The Italian shoe and accessory dynasty hired its first non-family chief executive a little over a year ago, and ever since CEO Michele Norsa has been looking for the “perfect” colleague to crunch some serious numbers as the company attempts the difficult balancing act of imminent flotation and rapid growth in new markets.
Who: Diane Hamilton
President and chief operating officer, Brooks Brothers
The Inside Track: Hamilton comes in-house after two years as a retail consultant to Brooks Brothers’ management via her firm, Lighthouse Retail Group. Her 15 years of retail executive experience at US department stores and position as managing director of PwC’s Strategic Change Practice should help lift the brand, which has not been shaken up since its last facelift seven years ago.
Who: Jamey Hargreaves
Chairman, Julien Macdonald
The Inside Track: Hargreaves has made a private investment in Julien Macdonald after two decades of senior positions at discount chain Matalan, which was built by his billionaire father John Hargreaves. The younger Hargreaves will steer Macdonald’s new phase, which includes an expansion of product ranges with the corresponding expanded design team and a roll-out of stand-alone boutiques. How active Hargreaves himself will be in the quest to transform Macdonald into a bona fide British luxury brand of scale is not yet known, but his retail career should bring some valuable insight to a designer whose grand profile has long overshadowed his relatively modest market penetration.
Who: Hervé Martin
Chief executive officer, Baccarat
The Inside Track: Two years after Starwood Capital splashed out on Baccarat, the old executive guard has finally been replaced by a team that the US private equity firm hopes will be able to lead the crystal company into a new era. Martin joined as chief operating officer after a stint at Ferragamo and was promoted in early 2007, and charged with spearheading a diversification from homeware into jewellery, accessories and hotels – not to mention new markets worldwide. Quite a mission for a brand with little fashion quotient, no hospitality legacy and a shaky past few years in the corporate ranks.
Who: Umberto Nicodano
Chairman, Valentino Fashion Group
The Inside Track: When private equity group Permira was vying for control of Valentino Fashion Group last year, then-chairman Antonio Favrin took sides with rival bidder Carlyle Group. So, once Permira triumphed with 97 per cent of the equity, and a delisting of the remaining VFG stock was looming, there was no doubt Favrin would have to walk the plank. Permira’s ensuing reshuffle of the board brought in corporate mergers and acquisitions lawyer Nicodano as chairman, though he will defer the day-to-day running of the company to chief executive Stefano Sassi, who held that job before Valentino Garavani’s retirement and Permira’s takeover.
Who: Naruki Shinke
Managing director, Daks
The Inside Track: Only a couple seasons after launching a directional luxury collection on the runways, Daks’s Japanese owners Sankyo Seiko were expected to ensure that any new management they hire nurtures and complements star designer Giles Deacon’s idiosyncratic take on quintessential Englishness. So eyebrows were raised when they turned to a Japanese compatriot to replace departing managing director Bruno Massa (who was instrumental in recruiting Deacon). Now the test is one of chemistry between the two men, and Deacon’s ability to give Daks a solid design identity.
Who: Robert J. Wichser
Principal, The Yucaipa Companies
The Inside Track: It might appear a bit bold to give control of a portfolio of fine jewellery and evening wear brands such as Garrard, Zac Posen and Stephen Webster to an executive from urban fashion brand Sean John, but on closer inspection, Wichser, a 35-year veteran of apparel industry giants such as Warnaco and JA Apparel, is well equipped. Wichser has been working closely with Yucaipa founder Ron Burkle to develop the Sean John name from a niche urban business into a mainstream fashion brand, and will be active in seeking out other new investment opportunities for Yucaipa.
Who: Michela Piva
Chief executive officer, Gianfranco Ferre
The Inside Track: Moving Piva up the ranks from director of marketing and merchandising to the top spot will provide a much-needed source of continuity for the brand that lost its founding designer to unexpected death last year and Piva’s predecessor, Massimo Macchi, resigned shortly thereafter. Piva held positions in Ferre parent company IT Holding prior to working under Macchi, but the question is whether her four years of experience with Gianfranco Ferre are enough to bind the company’s legacy to its very new future.
CREATIVES
Recruiters, headhunters and the top executive brass have shown that they are full of surprises when it comes to playing creative matchmaker with big-name brands
Who: Hector Castro
Artistic director, Biba
The Inside Track: Everything is riding on stylist Hector Castro and the new team he oversees in the Biba atelier. The 1960s British youth brand, which was resurrected two years ago, had a slow start under previous designer Bella Freud, and though the fashion industry was collectively willing the brand to succeed, it lost its momentum early on. The new structure deprives the brand of an obvious new designer personality, so if Castro can give an innovative, precise and marketable brief to the mostly anonymous team of designers, the brand’s updated legacy might yet shine through. But can an edgy stylist without any codified design acumen lead a legendary brand?
Who: Esteban Cortazar
Chief designer, Emanuel Ungaro
The Inside Track: Excessive hype greeted this so-called child prodigy when he debuted at New York fashion week five years ago, the youngest designer to have a show in the event’s history. The Colombian-American was only 19 at the time and had already been on the runways with his own line in Miami. Mounir Moufarrige, chief executive of Emanuel Ungaro, reportedly chose Cortazar after an extensive global search to replace Peter Dundas, who left the French house after only three seasons. Moufarrige is known for favouring youth when revamping brands, as he did as president of Chloé when he tapped Stella McCartney back in 1997. Cortazar will pull the plug on his eponymous brand in order to focus on Ungaro, where his colourful resort-inspired confections may echo the aesthetic of its founder, who retired in 2004. Still, Cortazar will be the house’s third designer in just four years, a history that might have put off older, more experienced talents.
Who: Mark Eley and Wakako Kishimoto
Artistic directors, Cacharel
The Inside Track: The 1960s French contemporary brand, which was revitalised in 2000 as a luxury house, has stumbled on to a formula. Yet another London designer couple known for bold, unique prints and textiles have bagged the vacancy left by their predecessors, Suzanne Clements and Inacio Ribeiro, who parted ways with Cacharel in 2007 after seven years. Eley Kishimoto’s line is more retro than Ribeiro’s, both in terms of silhouettes and prints, but Cacharel’s decision to stay in relatively familiar territory with the new creative team indicates they are primarily looking for fresh momentum, not a full-fledged rebranding.
Who: Chafik Gasmi
Artistic director, Baccarat
The Inside Track: Gasmi takes up the crystal brand’s first artistic director post at a time when ambitions are high. A designer of museums, hotels, fashion boutiques and home objects at his eponymous design firm, Gasmi was pinched by Baccarat from the Sephora perfume chain, where he was in charge of art direction. Baccarat is in need of a white knight to realise its grand plan to create a fleet of hotels and expand its product range, but its jewellery line also needs a much more stylish touch, so it will be interesting to see how Gasmi, who is more adept at large-scale concepts, adapts to fashion accessories.
Who: Alessandra Facchinetti
Creative director, women’s wear, Valentino
The Inside Track: Gucci dumped her only a year after she took over from Tom Ford in 2004, so Facchinetti’s chance for redemption at one of Italian fashion’s only two couture houses has stunned some observers. However, she is a Roman woman at a Roman house, and since Gucci she has helped to turn sportswear brand Moncler into a more fashion-forward enterprise. She, therefore, comes to Valentino with a minor victory under her belt – though carrying on the legacy of Valentino Garavani is a daunting task, especially since it appears the designer was not as involved in the selection of Facchinetti as new owners Permira.
Who: Gabrielle Greiss
Creative director, Sonia Rykiel
The Inside Track: Greiss has been the right hand of Sonia Rykiel since 2002, so it’s little wonder the baton of the French house’s main line has been passed to her with little fanfare by Sonia’s daughter Nathalie, who will focus on her role as managing director. Educated at London’s Central Saint Martins College of Art and Design, Greiss began her career as a stylist at edgy British fashion magazines such as Dazed & Confused, before returning to the continent to work with Martine Sitbon, Lanvin and Anna Molinari. Although founder Sonia Rykiel, 77, has semi-retired from the daily routine of designing, she will most likely remain an influence during Greiss’s early steps as creative director.
Who: Avsh Alom Gur
Head of design team, Ossie Clark
The Inside Track: Although they share a love of colour and print, the similarities mostly end there between legendary 1960s London designer Ossie Clark and the young Israeli-born Avsh Alom Gur, who has quietly shown his own line for just a few years. Gur worked in a number of design studios across the world, from Roberto Cavalli to Chloé, Nicole Farhi and Donna Karan, before going into business for himself. But if this revival is to be executed with a heavy dose of reverence toward Clark’s carefree, floaty confections, whimsical prints and tailored outerwear, Gur will have to study hard indeed. Today, the 1960s can appear naïve, so translating the Clark spirit into an alluring new collection will not be easy.
Who: Emma Hill
Creative director, Mulberry
The Inside Track: Katie Grand retreated from her initial acceptance of Mulberry’s offer to fill Stuart Vevers’ designer shoes, and the celebrated stylist will not helm the British accessories brand. She has been replaced by experienced designer Emma Hill, who has worked in design teams at Marc Jacobs, Calvin Klein, Chloé and Gap. Both sides are tight-lipped about why Grand resigned before she had even begun work, but Hill’s abilities are notably different from Grand’s edgy image-making skills.
Who: Jean-Paul Knott
Creative director, Cerruti
The Inside Track: The keys to the Cerruti atelier have changed hands once again. This time, management has said farewell to Nicolas Andreas Taralis, who was creative director for only two seasons, in favour of Knott, hired last year to design the Cerruti 1881 diffusion line. Knott becomes the fifth designer since founder Nino Cerruti sold the company in 2000. Knott’s elegant vision is broader than Taralis’s sharp tailoring and might just be the winning ticket for Cerruti, so long as he can keep a clear separation from his own eponymous line and devote enough attention to the house.
Who: Deborah Lloyd
Creative director and co-president, Kate Spade
The Inside Track: Lloyd is a versatile “merchant designer” who keeps one eye on her sales and one on her sketches. Having worked for six years as executive vice-president of design at Banana Republic and for five years at Burberry in its renewal phase, there is little doubt that Lloyd can meet Kate Spade’s aggressive revenue targets, despite the pressure new owner Liz Claiborne has put on the brands to perform. Lloyd’s mandate is to develop a full product range beyond the accessories that the original, eponymous owner/designer was famed for, eventually including clothing. With successful marketing and widespread name recognition in the US and Asia, the transition should be smooth.
Who: Marcel Marongiu
Consulting artistic director, Guy Laroche
The Inside Track: Ever since Alber Elbaz resigned from Laroche in 1998, the faded French house has been declining, its creative appointments gone awry, including that of mismatched Hervé L. Leroux (aka Hervé Leger). Marongiu needs to clean up the mess left behind and establish an identity for a heavily licensed house with no clear direction or clientele. Revenues come primarily from Asia, where Chinese parent company YGM Trading is strong, and through licensed products never seen on the catwalk. Meanwhile, Marongiu’s namesake brand closed a year ago and, though he was known in Paris, where it was based, he never created a sensation or attracted a vigorous international following.
Who: Kim Jones
Creative director, Dunhill
The Inside Track: One by one, Britain’s dusty heritage brands are signing up for a spring cleaning from a young London designer. Last year, Giles Deacon met Daks and now Kim Jones will bring a breath of fresh air to Dunhill. The Richemont Group brand has made a bold choice with Jones, whose cult menswear label couldn’t be more different to the conservative leather legacy at Dunhill. Notorious for his ranges for TopMan, Umbro and Uniqlo, Jones has also worked on special luxury brand projects for labels such as Mulberry.
But the partnership with Dunhill will be a challenge. Jones is infatuated with high-energy youth culture sportswear and “high casual” streetwear references, so the questions is: will he be able to reinvent Dunhill’s small ready-to-wear range without alienating older customers?
OWNERS
There is no doubt that 2007 was the year of private equity in the game of luxury fashion. But a host of new investors from all walks of life – not to mention the trusty old conglomerates – has begun to creep back into the fold. Watch out for more débutantes
Who: 3i
What: Agent Provocateur
The Inside Track: This private equity firm took over a majority interest in the British lingerie brand for an estimated £60m. The investment comes after a personal split between founders Joseph Corré and Serena Rees turned professional; Rees will leave the company, with Corré becoming the single creative director and 3i rolling out boutiques across the US and Asia. The cult label already has 35 shops in the UK and abroad, but this extended retail penetration should mean significant revenue growth in the years to come – so long as Corré can successfully go it alone.
Who: Richemont
What: Azzedine Alaia
The Inside Track: The Swiss luxury goods group, the second largest in the world, whose dozen or so other holdings include primarily watch and fine jewellery brands, bought an undisclosed stake in the couturier’s business late last year, making it only Richemont’s second women’s wear brand (they also own Chloé). Just months earlier, the designer himself had bought his house back from the Prada Group, and the move caused speculation that the buy-back was tactical, facilitating his later re-sale. The only thing both groups will say is the agreement allows for the establishment of the Alaia archives. But Alaia’s accessory business is huge, and Richemont’s chief executive Norbert Platt has spoken of his desire to increase the group’s leather goods business. Combined with Chloé’s might, this may be just the springboard Richemont needs.
Who: Castanea Partners
What: Betsey Johnson
The Inside Track: This deal proves that even a kooky, cheerful creator of zany designs can eventually attract sober-suited investors with chequebooks in hand – if she has been in business for 30 successful years. Johnson had been known as the eccentric of New York, even before her signature brand appeared in the 1970s, but since 2000 she has been expanding her retail network while signing diverse licensing contracts for a host of new products. Boston-based private equity firm Castanea Partners took notice of the stealthily growing business last autumn and signed on the dotted line. Plans are in the works for further investment in new product categories and for the addition of a dozen new boutiques.
Who: Proventus and Stefan Engström
What: J. Lindeberg
The Inside Track: Sweden’s flagship designer brand has tamed its swarm of individual investors and swapped them for majority private equity stake from Proventus and its partner Stefan Engström. Namesake and founding designer Johan Lindeberg stepped down temporarily last year from the company famed for classical tailoring with a sportswear and rock-n-roll twist after the women’s wear side of his business closed but, under the new owners, it is due to reopen. Since 1996, the company has grown from a minor Swedish label into a name that is well received by prudent buyers across Europe. How far the new owners are prepared to push this market visibility, however, will depend on a more aggressive marketing strategy and exciting designs from Lindeberg.
Who: TSM Capital
What: Matthew Williamson
The Inside Track: The new investment firm headed by Marvin Traub (former chief executive and chairman of Bloomingdale’s), Mortimer Singer and Aslaug Magnusdottir (previously investment director at Baugur UK) reportedly bought 22 per cent of Matthew Williamson.
Analysts estimate the cost at about £2m in an advisory partnership with the Aronsson Group – perhaps not surprising given that while Magnusdottir was at Baugur she advised the Icelandic group to invest the first 26 per cent in Williamson. The British designer of bohemian party clothes and loud, colourful ethnic day wear is heavily reliant on wholesale, however, so the new funding is earmarked for retail boutiques in the US and Paris (there is one Williamson boutique in London). TSM has already invested in other medium-sized designer businesses such as Rachel Roy in New York and is on the lookout for about 10 more with revenues between $5m-$50m.
Who: NRDC Equity Partners
What: Peter Som
The Inside Track: Just last year, New York designer Peter Som was tapped to head up the legendary Bill Blass brand, and even more recently his eponymous line became the beneficiary of a reported $10m from NRDC, which bought a 60 per cent stake. Best known for its real estate and retail portfolio, NRDC ventured into fashion last year when it bought the department store Lord & Taylor, which it has since been steering upmarket. No immediate expansion plans have been revealed, and it appears NRDC is banking on Som to give it some chic credibility while it hunts down other luxury and bridge brands in the US.
Who: Mark Worth
What: Ossie Clark
The Inside Track: The late Ossie Clark sold his business to Alfred Radley in the late 1960s and eventually went bankrupt, but has been enjoying a posthumous renaissance after a series of retrospective exhibitions and homages by several contemporary designers. Now, Mark Worth, co-founder of the online fashion media website WGSN and a former clothing manufacturer, has bought the licence (for an undisclosed sum) to relaunch the dormant house that helped define British fashion during the 1960s and 1970s. Radley still owns the trademark and has an extensive archive, but Worth – who came out of retirement to run this project – will direct the business. The market is increasingly brutal and crowded, however, and it is questionable how well the name Ossie Clark is remembered outside the UK and by non-fashion obsessives.
FAREWELLS
Anne Klein and Charles Jourdan are just two of the fashion world’s glamorous brands that were mothballed in the past few months
What: Charles Jourdan
The Inside Track: Last autumn, the shoe brand that has been a fixture in the fashion world since the 1950s filed for bankruptcy and was liquidated by the courts. The eponymous founder died in the 1970s, but for three decades the brand was the pinnacle of glamorous footwear, collaborating with designers such as Christian Dior and Pierre Cardin. Though various investors and buyers, such as the Hilton family and the French shoe company Repetto, explored a possible purchase, uncertainties about Charles Jourdan’s intellectual property rights meant that no one took the gamble. Given the crowded luxury market, this could be a turning point indicating a trend towards reviving famous old names.
What: Anne Klein
The Inside Track: Last November, Jones Apparel Group shocked the fashion industry by shuttering the well-reviewed, upmarket Anne Klein designer collection it had launched under designer Isabel Toledo only two seasons previously, breaking her contract and halting the spring/summer delivery to retailers. At the time of Toledo’s hiring, Jones made considerable fuss about elevating the brand through Toledo’s finesse, and the about-face leaves the company with only diffusion lines in the contemporary and bridge sectors. Many observers are perplexed as to what could bring about such an embarrassing turnround, but it may simply be evidence of an extremely competitive market or fickle management.
What: Takada by Kenzo Takada
The Inside Track: Another unfortunate example of a designer who lost or sold his signature brand. The liquidation of Takada by Kenzo Takada might be one more ominous sign for those designers in search of a second life.
In 1993, founder Kenzo Takada sold Kenzo to conglomerate LVMH and six years later he retired. A decade on, Takada reinvented his own studio under the name Takada by Kenzo Takada, as part of his Gokan Kobo firm, but after problems with securing funding, the business has been forced to close.
Who: Hans Stern of H. Stern
The Inside Track: Stern fled Nazi Germany to Brazil in 1939 and began his jewellery empire by cleverly redirecting some of the striking raw gems being exported from Brazil into a branded collection of his own designs. He died last October aged 85, leaving an empire of 160 jewellery shops in Brazil and plans for continuing the international push he began five years ago. Known for innovation in design and collaborations with the likes of Catherine Deneuve and Diane von Furstenberg, H. Stern became a buzz word for colourful, bold jewels. Now a velvet changeover is to be expected as two of his four sons, Ricardo and Ronaldo, survive him and have been active in the business for many years with a solid management team.
