Jul
 26
 2019



Christopher

Hello,

Happy Friday. In today's edition of The Spin you'll hear how a famous French fashion brand is no more and what famous French fashion designer is currently staging an eye-popping cabaret review in London. In addition, Reebok is releasing some cool new food-inspired sneakers with packaging that resembles Pop Art and H&M is celebrating an annual autumn tradition. Enjoy the read – and the weekend. Best, Christopher



brands

So long, Sonia Rykiel. The Sonia Rykiel label is going out of business after a 51-year run. A French commercial court said no to the sole bidder for the company, a family with no experience in fashion, and therefore forced the brand, which declared bankruptcy in April, to liquidate all operations immediately. Sonia Rykiel employed 134 people and its owner, First Heritage Brands, will sell its six stores in France and Monaco along with its intellectual rights and archive. The brand's namesake founder, known as "Queen of the Knits," died in 2017.



Slackening sales. Luxury conglomerate Kering issued its Q2 earnings report yesterday and while it was generally positive with overall sales up nearly 16 percent to €3.85 billion, it also indicated that the recent consumer hype over its top brand Gucci may be waning. Although Gucci's sales rose 12.7 percent in the period they still fell below analysts' estimates of 14.5 percent. On the flip side, Gucci continues to sell well in China and another brand in the Kering stable, Bottega Veneta, showed solid improvement.



Increased investment. Another fashion conglomerate, Italy's OTB, has upped (paywall) its stake in Viktor & Rolf. OTB first bought a 51 percent claim in the label in 2008 and now owns 70 percent of it (the remaining 30 percent is still held by brand founders Viktor Horsting and Rolf Snoeren). The amount of the transaction was not revealed. The deal comes as OTB's jewel-in-the-crown brand, Diesel, is facing difficulties in the US and Europe.



Joint ventures. Reebok is cranking out the collaborations this week. It has just released its second collection, for fall/winter 2019, with Victoria Beckham (gallery) and tomorrow it will drop three new sneaker and clothing releases for its ongoing International Food project. The clever styles, co-created with three German cult sneaker stores, were inspired by pizza, döner kebab and Chinese food and co-designed by Asphaltgold, Overkill and 43einhalb respectively.





retail

Pirate equity. A new report by two consumer advocate groups blames the rash of chain-store failures in the US on the fact that the majority of them were owned by private equity firms and hedge funds. It notes that 10 of the 14 largest retail bankruptcies since 2012 were owned by private equity and says these owners are responsible for the loss of 597,000 retail jobs and 728,00 jobs indirectly related to retail in the last decade. A private equity trade group responded saying that the report is biased and untrue.



Modernizing the mall. America's first shopping mall, 69-year-old Northgate Mall in Seattle, is undergoing a massive redo that is hurting many of its remaining retail residents and serves a glimpse into the future of malls in general. Its owner, Simon Property Group, is tearing down 60 percent of it which will be replaced with housing, office space, a fitness center and a National Hockey League practice center. Macy's and Nordstrom are two of the anchor stores that have left or will soon leave the location as a result.



Beer gear. H&M is launching a clothing capsule collection for Oktoberfest (paywall; translated by Google) in select locations. The Bavarian inspired offer (in German) with prices from €10 to €50 includes five different dirndl styles, faux leather lederhosen and various accessories. Two young actresses from Bavaria and a male influencer from region front the campaign for it.





people

Fabulous Freak Show. Jean Paul Gaultier has brought the cabaret revue he conceived, wrote, directed and designed the costumes for (duh on that last one!) to London. Originally performed it Paris, his "Fashion Freak Show" opened in the British capital this week to mostly positive reviews and will run through August 2. The autobiographical show combines catwalk shows, musical numbers and comedic bits. The eccentric Frenchman – who is openly gay – also admitted this week that he has proposed marriage to his friend Madonna three times but she always turned him down.







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