FASHIONBOSS ENCORE: SUNDAY FASHION RECAP
BUSINESS OF FASHION: Showtime for American Apparel
Dov Charney Is American Apparel’s First Ex-Founder | It is no shocker that American Apparel is gaining plenty of interest these days: including Dov Charney’s termination and the pending takeover offer from Irving Place Capital, which is offering to pay as much as $1.40 per share for the firm, among others. Just as we approach the year-end, they have done it again by adopting a stakeholder rights plan, better known as a poison pill. A poison pill is a strategy used by corporations to discourage hostile takeovers made possible by the target company attempting to make its stock less attractive to potential acquirers; it also plans to prevent any investor from acquiring a controlling stake in the beleaguered company without consent of other shareholders.
…And a Female CEO Takes the Reins | Fraught with scandal over late CEO Dov Charney’s prurient tenure, American Apparel is staging a redemption with positive new leadership: Paula Schneider. Charney’s abrupt dismissal last week from the retailer he founded arrived after extensive allegations and lawsuits of the executive’s sexual misconduct and self-described “dirty guy” tendencies. Compounding the strain on the brand — known for its explicit, objectifying advertising – were declining sales. But incoming CEO Paula Schneider has a track record and public image American Apparel hopes will restore it to consumers’ good graces. Schneider is, according to a report in Forbes, Charney’s “polar opposite” in everything from gender equality to business prowess. American Apparel’s former CEO is better known for mannequins with pubic wigs and a recent lawsuit alleging sexual coercion with a 20-year-old employee. At the same time, Schneider was running Warnaco, the world’s largest swimsuit manufacturer, and was a 2010 winner of the National Organization of Women’s Business Owners Inspiration Award.
FASHION LAW: In Denmark, Pandora’s Box in Court
Jewelry Company Pandora Plays It Cool in Lawsuit | Earlier this month, Danish jewelry company Pandora (most famously known for their charm bracelets) was found guilty by the district court in Glostrup, Demark of breaching a section in the Securities Trading Act back in 2011. The decree refers back to a profit warning issued by the company in August 2011 that downgraded its 2011 sales projections and caused shares to dive 65.4% in one day–a significant percentage for one single trading day. Shortly after the decision, a press released was issued and noted that “The decision has now been reviewed by Pandora, and the company has decided to appeal the verdict to the Eastern High Court.” The company has remained positive on its outlook for 2015 stating that the appeal would have no impact on its business.
FASHION & STYLE: Vivienne Westwood Is on the Red Carpet
Designing Carrie Bradshaw’s wedding dress may have been Vivienne Westwood’s first “Sex and the City” appearance, but it was not her first time in Hollywood. Actresses the likes of Anne Hathaway and Kirsten Dunst have both donned her gowns at premieres and awards ceremonies, and now Westwood hopes to capitalize on that big-screen cred with a collection inspired by the red carpet. The collection, called the Gold Label red carpet capsule collection, was just previewed to press and stylists by Westwood’s husband Andreas Kronthaler in Los Angeles, according to WWD. Westwood took inspiration from the “elaborate, feminine and flowing silhouettes” of legendary British designer Charles Frederick Worth, arguably the first modern couturier, favored by late 19th century aristocracy and New York socialites. The looks are imbued with Westwood’s signature spontaneous use of color and form, while maintaining flattering and camera-friendly lines. The red carpet collection will launch in boutiques come January, coinciding with the spring Gold Label collection.by