The Shophound

Business Troubles: Scoop On The Ropes?

Scoop, the popular contemporary chain appears to be hitting a rough patch these days with a bunch of distressing challenges. This week, the SoHo Flagship store was hit by a protest from former employees who are suing the company for overtime pay and other questionable business practices including "promoting" stock and security workers to management positions without appreciably changing their duties, but restructuring their pay to a weekly salary, thus exempting them from potentially lucrative overtime pay. Many are West African immigrants who were fired over purported documentation issues, which they dispute.
And why should such a successful chain be so chintzy?
According to the lead story in today's WWD, vendors and factoring companies are growing impatient with Scoop which has been running behind on its payments to suppliers for several months. Factors are a quiet, usually rarely heard from component of the fashion industry who approve retailers' credit and help facilitate wholesale transactions. They are often the first to raise the red flag indicating that a retailer is in trouble. Vendors are often less willing to trifle with a long term retail relationship, and many are continuing gamble on shipping goods to Scoop, though the article seems to suggest that upcoming Fall deliveries may be held up.
While many still associate the now embattled store with its highly visible founder, Stefani Greenfield, she actually left the company last year, and the chain is now owned by Billionaire Ron Burkle's Yucaipa Companies. With such big backing, many are wondering why the relatively small chain (only eleven stores) is evidently so undercapitalized. Many observers (including this one) feel that Scoop, though it still carries appealing items and popular labels, has become formulaic since Greenfield's departure and has lost some of its luster and industry leadership. Its website suspended e-commerce over a year ago, and a promised redesign has yet to happen, although the actual stores also continue to occupy some of the most desirable retail real estate.
Will this month's misfortunes scuttle a once white-hot chain? Time will tell, but we are guessing that Billionaire Ron Burkle (we understand that 'Billionaire' is actually his real first name) is not ready to write off an investment made only two years ago, but eyes will now be on Scoop to see if the Fall goods that are arriving in other stores now start materializing on its floor as well.
Scoop NYC Feels Credit Squeeze by Lisa Lockwood (WWD)

Today In Karma: Kira Plastinina's Return Draws Angry Protests In Los Angeles

Some Russian Heiresses really have nerve.
You may have heard that Moscow teen queen designer Kira Plastinina has surprisingly reopened her two Los Angeles Stores under a new Russian based holding company and modified name. Regular readers and New York shoppers will recall that the dairy scion's seven month old American chain closed abruptly just before Christmas last year following a speedy Chapter 7 bankruptcy filing which left most of her employees and not a few creditors high, dry and really pissed off. Many fashion blogs including The Shophound hosted a string of comments from rightfully enraged and disappointed former employees detailing all sorts of bad behavior from management, and those folks have not been quick to forget or forgive.
Perhaps Plastinina thought she would quietly reopen the two stores whose leases she retained as K. Plastinina, but WWD reports that one of the liquidated company's creditors, a construction firm that built eight of the original stores, picketed the Robertson Boulevard shop last Friday. Tom Rectenwald Construction is reportedly owed $2.5 million by Plastinina, and will continue picketing until he is paid —which, we're guessing, could be a while.
Perhaps Karma works differently in Russia
Kira Plastinina's Return Draws Protestors by Anne Riley-Katz (WWD)
Previously,
Shutdown Fallout: Kira Plastinina Staff Left High And Dry
Shutdown Fallout II: Kira Plastinina, It Gets Worse

Thom Browne Ready To Turn A Corner

Eyebrows were raised a few months ago when reports surfaced that acclaimed menswear designer Thom Browne's business was on shaky legs after he pared his staff down to the bare minimum and was said to be furiously searching for investors.
It appears he has succeeded, as WWD reports that Browne has hired a new CEO and taken on a Japanese based minority investor. New president Josh Sparks helped broker the deal and has set out on a program to expand and strengthen the label. High on the list of priorities is lowering opening price points by 20 to 30 percent, which couldn't hurt, and expanding retail distribution as well as adding licenses.
Lower prices will be an unsurprising but most welcome improvement. Now if Sparks can do something about Browne's meager size range and constricting fit, we'll really have something to write about.
We know. baby steps.
New Thom Browne CEO Maps Growth Strategy (WWD)
Previously: Thom Browne In Trouble? ...And Other Stories

Resort Previews: Ports 1961 Braves The Storm For Resort

It was just our luck that the Ports 1961 Resort/Pre-Spring preview would take place at the exact time of yesterday's downpour, but adverse weather didn't seem keep anyone from the brand's Meatpacking district boutique to see designer Tia Cibani's latest efforts.
We always look forward to the Ports show because somehow Cibani always manages to transform the generic tent with a captivating ambiance and surprise performers, but in the showroom, she relied on brownies (just the regular kind, thank you very much) which gave us an opportunity to get a close look at all the inventive, hand crafted details Ports has become known for.
This collection's inspiration was the architect and designer Charles Rennie Mackintosh and his wife Margaret MacDonald, so there was a whiff of retro nostalgia from about a century ago or so, interpreted in imaginative draping and geometric beaded trims. Cibani has always skillfully walked the line between artsy bohemian and "art teacher", so this collection has its quirks and surprises without looking like a visit to the crafts fair. The best news is that like many brands, Ports has done an excellent job at keeping prices under control for the season without sacrificing quality, and that's really what's on everyone's mind.

Magazine Mess: Harper's Bazaar's Double Cover Stumble & Interview's Flip-Flop

Harper's Bazaar has been drawing barbs for its covers pretty much since Glenda Bailey took over as Editor-In-Chief after Kate Betts' brief attempt to revamp the title. For a while now, Bazaar has published two covers for each issue; one more artistic (and usually more attractive) version with minimal cover lines to be sent to subscribers, and another more commercial newsstand version –usually a tighter (and often cheesier) headshot of whomever the subject of the month might be- festooned with text, and typically a great big number –Bailey's signature– which has become something of a running joke among the book's competitors ("525 New Ideas"? Really? 525? Did someone count them? How new could they all possibly be, and who would even need or want that many ideas all at once?). The one thing the two covers usually have in common, is the subject, with the images generally taken from a larger photo shoot featured inside the magazine.
This month, however there is a split that has critics cackling over Bailey's presumed lapse in judgment. Subscribers will be treated to a fetching shot of supermodel Doutzen Kroes by Terry Richardson from an interior editorial spread. Newsstands, however, will have an image of Angelina Jolie on the cover not from a Bazaar shoot, but a red carpet/paparazzi shot taken last December from a photo service, proving that editors are so slavishly tied to putting a celebrity on the cover that thre'll find a way to do it even if they haven't gotten one to pose for them that month. Jolie declined to participate in the issue at all, and the accompanying profile inside is a "write around" done without an actual interview.
Blogs and critics are comparing Bazaar to lowbrow celebrity weeklies like In Touch and Europe's Grazia. One has to wonder why they can't give Kroes both covers, since hers is clearly the prettier version. Virtually no model who has emerged since since Gisele Bunchen has been allowed to grace Bazaar's cover by herself. Wouldn't July be a good time to give the popular Doutzen a tryout at the newsstand?
In other late-breaking news, Interview has had a rocky road lately. The Shophound, like so many others, thought the editorial combination of Fabien Baron and Glenn O'Brien –both veterans of the title– would spell excitement and a return to the magazine's daring roots, but after a few chilly and commercially disappointing issues, Baron was shown the door and replaced with a less expensive design team who promptly restored the title logo to a more classic mode. Now comes word that Peter Brant, whose full acquisition of the magazine sparked the departure of longtime EIC Ingrid Sischy, has invited Baron back and dismissed O'Brien.
What is now in store for the newly beleaguered title? Baron's redesign last year was admired but fairly subdued, and recent covers have ranged from the banal (Lindsay Lohan? Seriously?) to the obscure and commercially challenging (Björk? Gorgeous picture, but come on, Björk?). Will we see yet another new title logo? Perhaps a more arresting and exuberant graphic design? Time will tell, and as usual it will be a few months before the newest team's full efforts will be seen. We sure hope they can get it right this time. After a successful run under Sischy that transformed it from Andy Warhol's pet project into a more mainstream yet still lively commercial success, we would hate to see Interview collapse under editorial confusion.
Harper Bazaar's July 2009 Cover Caught Up in Tabloid-Comparison Controversy (Fashionologie, linking to nearly every other blog post on the topic)
At Interview Magazine: Baron is In, O'Brien is Out At Interview Magazine: Baron is In, O'Brien is Out by Stephanie D. Smith (WWD)

Resort Preview: Douglas Hannant Stays The Course

It's hard to believe that we are looking at collections that will take us into 2010. It seems like the millennium only just turned and yet time marches on.
The question the industry continues to ponder this month as Resort collections are presented, is how to address the customer who may not be vacationing as lavishly as she did in years past. So far, there is no clear answer, but retailers continue to demand this delivery, typically seen as a more casual, down to earth preview of spring to come.
For Douglas Hannant, who invited us to an intimate showroom presentation this afternoon, the solution is to show the latest, easy, refined version of what he does best. In this case, that means a parade of expertly draped dresses long and short in opulent fabrics with the occasional lavish embellishment. If the recession has taught us anything, it's that trading down is not the solution, so Hannant has not skimped on the luxury even if his silhouettes show a little more ease. Touches of turquoise abound culminating in a tank of beaded fringe shown with a long suede skirt, or your favorite jeans if you prefer.
The end of the year is looking big for Douglas Hannant as he prepares to open his first boutique on the street level of the Plaza Hotel's retail complex, as well as launch his first footwear and accessory collections. So far, it looks like he's been making the right moves to weather the current challenges.

More pictures after the jump:

Revolving Door: House Of Ungaro Chooses Starlets Over Its Designer

Rumors were flying earlier this week that Esteban Cortazar, the Columbian born designer for Emanuel Ungaro, was threatening to quit if the company offered a consulting position to actress Lindsay Lohan. It seemed vaguely ridiculous that a prestigious fashion house would sacrifice its designer to ally itself with a prematurely washed-up actress with a messy personal life, but word comes from WWD that Cortazar is expected to depart from the house after showing three ready-to-wear collections because of disagreements over the label's marketing and advertising strategy.
Apparently, Ungaro has been negotiating with a number of actresses, Lohan among them, to star in the house's first ad campaign in several years. One would have to wonder what is to become of a fashion house willing to put its ad campaign over its product, especially just as press and retailers were beginning to warm to its young designer.
Once upon a time, Emanuel Ungaro was a prestigious Haute Couture Maison whose designer trained at Balenciaga and Courrèges and produced startlingly opulent clothes, reaching a peak of sorts during the 1980s. Unfortunately, the label has been in a tailspin since M. Ungaro retired in 2004, with Cortazar the fourth designer in a string of replacements. Ungaro's chosen successor, Giambattista Valli founded his own successful house after his dismissal. He was followed by Vincent Darré who was quickly replaced with Peter Dundas, who just showed his first collection for Emilio Pucci.
Now only 25 years old, Cortazar had already débuted his own collection in New York at the age of 18 before taking the Ungaro job, and one expects he'll recover from this setback. As for the once sterling house of Ungaro, however, retailers must be wondering why they should hang on to the fading label if it can't hang on to a designer.
Esteban Cortazar Said Out at Ungaro by Miles Socha (WWD)

Designers In Danger: Trouble Looms For Christian Lacroix & Veronique Branquinho

This is inevitable news, and frankly, we are somewhat surprised that we haven't heard of more designers who are taking legal measures to either protect their businesses or shutter them. Christian Lacroix SNC has filed court papers equivalent to Chapter 11 Bankruptcy in Paris to protect itself from creditors. Rumored to have been put on the block by its current owner, the Florida based Falic Group who closed diffusion lines and positioned the brand as pure luxury (including a new New York flagship on East 57^th Street), the object is to continue running the business and perhaps find a new owner. Troubles stem mostly from a 35% drop in Prêt-à-Porter orders for Fall, despite a critically acclaimed collection. Ironically, it is the extravagant Haute Couture collection that has been the most stable business for Lacroix due to its loyal clientèle and in-house production. The designer plans to show a scaled back presentation in July as well as a Spring 2010 RTW collection in the Fall.
Things look less promising for Veronique Branquinho, the acclaimed Belgian designer who will close and liquidate her house after 11 years in business. Branquinho also experienced a dramatic reduction in Fall orders as well as cancellations for Spring, and Belgian courts have put her company in a three-month liquidation process. Fortunately for her, the designer has a back-up job as the new director for the distinguished Belgian leathergoods house Delvaux.
Perhaps she can get them to add a ready-to-wear collection.
Lacroix Seeks Court Protection From Creditors, Veronique Branquinho to Liquidate by Miles Socha (WWD)

LEGAL BRIEFS: Mistrial Called In Forever 21/Trovata Case

After the jury came back deadlocked, U.S. District Court Judge James V. Selna declared a mistrial in Trovata's lawsuit against retailer Forever 21 for allegedly copying its signature trade dress. The offending designs are pictured above (Top row: Forever 21, bottom row: Trovata) clearly, there is copying going on, but the issue is over specific details like buttons and trim that identify items as Trovata's signature style. That's where things got complicated, and so ends a bizarre trial which included one of Forever 21's founders testifying that she had little idea what the volume of her company was or where the merchandise came from.
Industry watchers were hoping that this trial would clarify copying issues, since the U.S. still lacks copyright protection for fashion design. It is the only one, so far, of many similar suits against the retailer to go to court instead of being settled.
Presumably, a new trial will be set, though the issues under current law may not any less murky when that happens.
Mistrial in Trovata, Forever 21 Copying Case (WWD)

The Mayor & Vogue Team Up To Save Retail With Shopping Parties

Yesterday, Mayor Bloomberg, Anna Wintour and a host of designers and retail executives appeared en masse to announce "Fashion's Night Out" in conjunction with the CFDA and NYC & Co. this fall to boost retail traffic in stores across the country without promoting markdowns. The program will include stores in 12 major cities on the evening of Thursday, September 10, just as Fashion Week begins. Stores will be challenged to create special events to draw customers into stores that evening. The event is to be extended internationally to all major cities where an edition of "Vogue" is based, and Wintour told WWD that the concept will be interpreted in each city to best represent the local cultures.
So far, few specific events that will be staged in New York have been announced, although Phillip Lim promises a live band in his Soho store, and Barneys seems to be arranging something to do with knitting classes. eventually, a website, Fashionsnighout.com, will be set up to detail specific events.
Knitting's always a big draw, right.
We certainly hope this works. It sounds like a lot of work, and we are pretty sure that most designers are kind of super-extra busy already on the eve of Fashion Week. In fact several runway shows and presentations are usually scheduled for that evening.
Here's what we know for sure: There are really only a few things that can be counted on to get customers into stores besides sales, and they are celebrities, free food and booze.
Get those bars set up early.
Calling All Shoppers: 12 Cities Plan Major Retail Initiative (WWD)
To Stimulate Retail, A Fashion Night Out (NYTimes/City Room)
Mayor Bloomberg Teams Up With Vogue for Fashion’s Night Out (The Cut)