The Business of Fashion

NexCen | Meltdown and mystery

In recent days, NexCen has experienced a meltdown unlike anything the fashion world has seen, leaving Bill Blass,  its star brand, in play as vulture investors circle to assess what value remains. NexCen's failure to disclose a $30m debt that must be paid back by October has sent its stock reeling and could very likely result in the company going bankrupt. Its CEO Robert D'Loren's job is at stake and the company's investors and other stakeholders are furious.

The dramatic turn of events underlines the fact that even culturally important brands like Bill Blass can suffer collateral damage in the new era that has brought fashion and finance together.

In February, Lauren Goldstein Crowe investigated NexCen's business model in the FT. Having spent several days with D'Loren and his team, Lauren saw the inner workings of the company, its team dynamic and business model. I asked Lauren if she would answer a few questions about what might lie behind the dramatic headlines and what could be in store for NexCen in the weeks to come.

Links | NRDC spree, Giles style and Levi's liftoff

The man who wants to fix retail (Fortune)
Fortune magazine profiles NRDC's Richard Baker who is on a retail and fashion acquisition spree having bought Lord & Taylor, Fortunoff, and Peter Som and is said to have his eyes on Saks.

Giles Style (Scottish Daily Record)
Giles Deacon talks to a Scottish paper about the fashion designer of the 21st century -- one who has his feet on the ground and is passionate about gardening and reading.

Levi's turns a corner (International Herald Tribune)
Armin Broger , President of Levi Straus Europe, is successfully turning around the Levi's business by refocusing its collections and using cities like Antwerp as fashion business laboratories.

Peter Som A/W 2008 photo courtesy of Coutorture.

New York Fashion Week | Furry optimism at Oscar, Peter Som and Proenza Schouler

The day before Super Tuesday in the American primary elections might be called Mega Monday at New York Fashion Week, with established heavyweights like Oscar de la Renta showing alongside the city's new establishment of Proenza Schouler and Peter Som. Young or old, a newfound fancy for fur (and its premium pricepoints) was a common thread, even in these recessionary times.

But, Oscar is no old-fogey. His collection came out to the sweet sounds of Regina Spektor, the young hip pianist. During the show, I had the good fortune to be seated next to the company’s CEO, Alex Bolen, who also happens to be Oscar’s son-in-law. It was a great opportunity to have a pre-show chat. Before I could even ask, Alex told me that Oscar de la Renta has not seen any impact of the economic slowdown on their business at all. Not a blip in sight.

New York Fashion Week: A banner day for Peter and Phillip

In the heart of New York's garment district in the same building on 39th Street, two of the city's most exciting young talents have been busy putting together the collections that they unveiled on Sunday. And, what a great showing for both Peter Som and Phillip Lim, who both delivered what their many fans were expecting...and more.

Peter, of course, has just sold a significant stake of his business to retail private equity house NRDC and has been confirmed as creative director of his alma mater house Bill Blass.

This was his finest collection yet and one of the strongest of the entire New York collections, having perfected that fine balance for his clients who move fluidly from uptown socialite events in the day to downtown parties at night. Tinsley Mortimer, the socialite of young socialites, was sitting right in front of me and was explaining to the media hordes why she integrates Peter Som into her wardrobe. He's got his finger on the pulse of what these young women want and it was clear from all the excited whispering in the front row that this collection is going to sell like hotcakes.
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Peter Som: Rolling with NRDC?

The early stage fashion investment deals keep on rolling in.

A day after the announcement from Matthew Williamson, The Wall Street Journal is reporting today that Peter Som is close to finalising a deal with NRDC Equity Partners, further confirming a report from WWD back in February. NRDC is the firm behind the investment and turnaround of Lord & Taylor, the American department store.

It's an unconventional choice for Som whose savvy business partner, Elana Posner, has been driving the fund raising search for Som for over a year now. While other designers have been taking investments from upstream strategic investors (Sophia Kokosalaki and Staff International, Proenza Schouler and Valentino), this is the first deal in some years that comes from a retail partner whose expertise is more focused on retail distribution than on production and brand development.

Perhaps one reason for this choice is the unique structure of the deal.

Bill Blass: The Peter Som and Michael Bastian tag team

A couple of weeks ago in New York I caught up with Elana Posner, President of Peter Som, over lunch. Amongst a flurry of topics, we touched (briefly) upon the gossipy item in WWD on July 6th which leaked the news that Peter was soon to be appointed as the new womenswear designer for Bill Blass, owned by NexCen brands.

What I didn't know at the time was that Michael Bastian would be designing the men's collection. So, I was excited to hear the news confirmed today, not only because it could finally be discussed on The Business of Fashion, but also because these are inspired choices made in part by NexCen. What a pleasant surprise! It's been a good week for Bastian as he was also confirmed as one of the finalists for the CFDA/Vogue Fashion Fund.