Oct
 19
 2018



Caroline

Hello,

Welcome to a new edition of the Spin. The news cycle is full of ups and downs. Alas! The British New Look is saying adieu to China. Meanwhile, American Victoria's Secret is entering the Italian lingerie market. Wall Street investors applaud the acquisition of the Vionic brand by Caleres...but must wave goodbye to Perry Ellis International. Its founder takes the company private. Today is also the beginning of a new rental paradigm. Rent the Runway is installing drop boxes in 15 WeWork American locations. Everything is now for rent. Enjoy the read. All the best, Caroline.



markets

Chinese retreat. British fashion chain New Look is exiting China: its residual 120 outlets will be closed at the end of this December. Facing rising costs and a shift towards online commerce, Alistair Mac George, chairman of the company, is reviewing New Look's strategy in England and elsewhere. "Performance has been below expectations" he said, as his justification for the retreat from China. Other countries could also suffer the same fate. New Look is considering scaling back in France, Belgium and Poland.


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American return. American footwear and apparel company Nine West Holdings is getting closer to emerge from chapter 11. The company filed an amendment to its bankruptcy plan that will reduce its debt obligations by more than $1 billion, provide $105 million cash recovery to its stakeholders and ensure that its remaining brands Kasper, Anne Klein, One Jeanswear...have a 3 year purchase commitment from Belk department stores. The court will hear the case on November 7.



Famous addition. The American footwear group Caleres is adding a new brand, Vionic, to its portfolio for $360 million. Caleres ($2,577 billion revenue) is the owner of the retail chain Famous Footwear and several reputable brands such as Sam Edelman and Dr Scholls. Vionic brings to the St Louis company access to the contemporary comfort footwear category. It is also a growing online brand, with 25% of its sales coming from e-commerce websites. The rapidly developing Vionic label has annual sales of $180 million.



Privatizing. George Feldenkreis, founder of Perry Ellis International will now be able to take (paywall) the company private. Shareholders voted overwhelmingly in favor of his offer: he will pay $437 million to remove that masculine clothing brand from the Nasdaq. George Feldenkreis waited several months to claim victory because there had been a competing offer from Randa Accessories. Nike, a major licencee, said it would not continue its business with Perry Ellis without the Feldenkreis family. Nike won.





retail

Roman holiday. Victoria's Secret, a subsidiary of L Brands, will open (paywall) its first flagship store in Rome, Italy by the end of 2018, just in time for the holiday season. The American company is working with the Italian group Percasi, which signed a franchise deal with L Brands in 2015 and subsequently opened Victoria's Secret doors selling beauty and accessories. Until now, Victoria's lingerie was not present in Italy. The L brands subsidiary is famous for its extravagant fashion shows.



The good place. In November, Fourpost will open two "micro stores" in Triple Five Group malls, the West Edmonton Mall (Canada) and the Mall of America (Minnesota). Disruptive micro stores offer local emerging brands and pure e-commerce players an easy place at which to showcase their brands, without lease and capital expenditures. Triple Five Group follows the example of its peers, Simon Property and GGP, which are also experimenting with new retail platforms.





tech

Rent everything. Rent the runway is opening a network of clothing return boxes in 15 WeWork locations in American cities (New York, Los Angeles, Chicago, Miami...) Business women renting a space at WeWork will be able to quickly return outfits in the drop off boxes and order new clothing right away. Normally they would send the clothes via mail. Rent the runway offer them an unlimited number of rotating outfits for $159 a month. The company will even open a few pop up shops at WeWork to facilitate the exchange.





people

Scandinavian expansion. Andrea Baldo joins (paywall) Danish contemporary brand Ganni as its CEO. The founder Nicolaj Reffstrup will stay with the company but will focus on technical innovations. Andrea Baldo was the CEO of Coccinelle, an Italian leather goods brand. He also worked at Marni, Maison Margiela and Diesel. His experience in the fashion industry will help him develop the brand in America. Ganni has 400 point of sale worldwide and operates 21 stores across Scandinavia.







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