Narciso Rodriguez gets boost by Liz Claiborne: Update - Parting Ways

[softgrey]

i just want him to expand his vocabulary...not start speaking a whole different language!...

 

[tricotineacetat]

i just want him to expand his vocabulary...not start speaking a whole different language!...

true. it probably isn't much, but what I thought was new for him lately was an interest in utilitarian clothing - some of the parkas he has done for f/w 2007 almost reminded me of helmut lang, in a nice way. what I like about rodriguez is that he is good at keeping most of his collection in a non-fussy territory. Sometimes it's nice to see somebody doing just a nicely-proportioned shift dress with a flattering neckline or getting a certain tone of grey right. It has become a popular feature with many designers, but Narciso was one of the first to put pockets into dresses and skirts lately, which I think, eases the body-concious cut of his clothing.

reminds me of the last three collections that jil has designed before quitting her label for the second time - while her clothes were so minimalist, you couldn't help but feel that the proportions were all very well balanced.

 

[softgrey]

those are exactly the kind of things i am talking about...
adding a bit of volume or sportiness to the existing lines...
keep his keen sense of proportion and colour and architectural shapes, but make them a bit more 'figure-friendly'...
and less restrictive...

it's just a more modern way to dress in these very busy times when we are all running around ..

 

[tricotineacetat]

I really just wonder if his clothes just appear as being as exceptionally tight-ish on the runway or if they are as well, once they are in the shops?

It would be nice if somebody could elaborate on that, because you can hardly find his collection represented in Europe.

 

[thesiren]

his garments are tight irl, but lend themselves to the female form when it comes to fit and fabric. i am not at all thin, and always find myself loving the fit of his dresses and skirts.

while i do agree he should expand his horizons, his signature body-hugging dresses are universal.

 

[kimair]

wwd / september 22.2009

Narciso Rodriguez and Claiborne in Talks to Possibly Part Ways

Liz Claiborne Inc. and Narciso Rodriquez, stalemated by fundamental differences over how to grow the designer’s niche business, are in talks to possibly sever the $4 billion vendor’s stake in the brand, according to sources. Various options are being considered, and nothing has been finalized.

Rodriguez has a right, according to the contract the two firms signed in May 2007, to buy back his stake, but sources said the notoriously difficult designer is having trouble finding an investor. Other possible endings could include Claiborne maintaining a silent partnership, an active partnership or keeping a financial interest without funding additional growth, said sources. Both parties declined comment Sunday.

Taking a half interest in the $15 million Narciso Rodriguez business, which cost Claiborne an estimated $12 million, had not been part of the vendor’s core “power brand” strategy, but rather a test to learn more about the luxury market. Sources said the company, which was in the red in the second quarter, did not expect the designer business to make money for at least five years, but was disappointed by the lack of plans made to generate future growth. Claiborne had said it ultimately thought the brand could be a $100 million business — about eight times its sales when the deal was struck.

“In addition to the expansion of the existing collection business, we feel there are abundant brand extension opportunities in nonapparel and licensing categories, as well as increased international distribution,” Claiborne chief executive officer William L. McComb said in May 2007 when the deal was signed. “Unlike acquisitions of fully scaled businesses, here we are affiliating with one of the world’s finest designers to organically build a broad business in a growing and profitable category that we do not currently operate in — the luxury designer segment — that is sold in productive and partnership-oriented upscale retailers.”

Claiborne had hoped to grow the Rodriguez brand with licensed categories within its current channels of distribution, which include Neiman Marcus and Barneys New York — not taking it down market, sources said. The contract between the designer and Claiborne did not include rights for a diffusion line.

However, sources said Rodriguez and longtime business partner Kathy Kalesti did not share Claiborne’s vision of commercialization, and that McComb has chosen to walk away from the partnership rather than fight the designer on it. The possible breakdown of the deal between Rodriguez and Claiborne was first reported by Fortune magazine over the weekend.

“It’s a very difficult business if you don’t have the right partner and financial people behind you or people who really care for you,” Rodriguez told WWD in December. “LCI…is very generous and recognizes the potential of everything we should and could be doing and haven’t been able to.”

The designer’s collection has received accolades from the fashion community and has a cult celebrity following, from Sarah Jessica Parker, Rachel Weisz, Claire Danes, Jessica Alba and Jessica Seinfeld today, back to Carolyn Bessette-Kennedy’s iconic wedding gown. With Claiborne focused on growing its direct brands, such as Juicy Couture and Lucky Jeans, and stopping the losses of the core Liz Claiborne brand, dealing with a small business that wasn’t progressing in the direction it wanted wasn’t worth it for the firm, which last year shed about a dozen brands it deemed nonpriority to spend time or money on.

Sources said the first year of Claiborne and Rodriguez’ partnership was largely spent unwinding the business from that of former owner Aeffe SpA, which helped found the designer’s eponymous brand in 1997. But otherwise, the financials of the designer business — which was losing money before Claiborne and Rodriguez partnered — didn’t change.

The brand has also been unable to find a president to help lead the growth. McComb had made multiple trips to Europe to interview possible brand president contenders from luxury houses that included Gucci and Chanel, but the designer did not choose to hire any of them, according to sources. For a few months, Janice Sullivan — who’d been at Claiborne for years as president of DKNY and carried the president title over to Narciso Rodriguez — came into the designer company, where it is said her presence bothered the designer. Sullivan left about four months later to join Warnaco Group Inc. as president of Calvin Klein Jeans. Before partnering with Claiborne, Rodriquez also struggled with finding someone for that role, with former Giorgio Armani executive Roberto Pesaro leaving the post of president and ceo after less than 10 months.

 

[ultramarine]

Oh ... god!

Not again!

Tks for the article

 

[Dkammern]

how was Narciso's relationship with LVMH when he has chez Loewe?
we know that Arnault takes advantage of difficult times to invest in buying labels. do you think after so many insecurities they could reach a deal? i shouldnt be too much of a deal to absorb him into the group, no? ... unless, as i asked, there's not a good relationship between the two already...

 

[maffam]

Liz Claiborne and Narciso Rodriguez Terminate Partership

from today's wwd:

NEW YORK — Liz and Narciso are getting a divorce.

In a joint statement made today, Narciso Rodriguez and Liz Claiborne Inc. said they are ending their 18-month-old partnership.

Rodriguez will regain full ownership of his business and inherent trademarks. Essentially, the termination of the deal with Claiborne will give the much-respected designer, who launched his collection in 1997 in a partnership with Aeffe SpA, complete independence for the first time.

While the tie-up with Claiborne was much trumpeted by both parties when it was unveiled in May 2007, giving the giant vendor the cachet of a major designer in its stable and Rodriguez the backing he needed to grow his brand, in the end the relationship just didn’t work.

“LCI and I had hoped there would be more synergies between our companies,” Rodriguez admitted to WWD. “We did not find enough common grounds and jointly have concluded that the Narciso Rodriguez brand could be developed more effectively outside of this partnership.”

Claiborne chief executive officer William L. McComb said, “While we both saw significant opportunities to develop the collection in multiple product categories, channels and geographies initially, differences emerged as to how best to achieve this organic growth, and we have decided to terminate our business relationship by mutual agreement. We have also seen dramatic changes in the luxury marketplace versus what we expected when we formed the alliance.”

Both parties declined to disclose financial details of the transaction, but there has been speculation that Claiborne is essentially handing the designer the 50 percent stake it acquired at a price estimated at $12 million. Claiborne is still working to determine the financial impact of the return of the trademarks, and will count the Rodriguez business as a discontinued operation in its financial statements. According to the statement, the nonrecurring cash charges will be insignificant to the company’s cash flow and noncash charges associated with the transaction.

The termination of the business relationship is widely believed to have been amicable, however. Claiborne will provide Rodriguez with the support to ensure a smooth transition, including the production and timely shipment of the much-praised spring collection.

Claiborne and Rodriguez formed their partnership after the designer’s lengthy — and well-documented — search for financial backing to unshackle him from his agreement with Aeffe and expand the business to match its potential.

Rodriguez has been a household fashion name practically since he created the bridal gown for the late Carolyn Bessette-Kennedy. He has a following among celebrities and social types such as Jessica Seinfeld, Sarah Jessica Parker, Rachel Weisz and Claire Danes. Jessica Alba, Danes, Seinfeld and Julianna Margulies were among the celebrities at his show in February.

But, despite his recognition, Rodriguez, like many of his contemporaries, has been challenged to grow his business to a size that equals his talent. Before finding a partner in $4 billion Claiborne, he was struggling to make ends meet, recounting to WWD last year how the fashion industry galvanized to help him, from Donna Karan sending over rolls of fabric to Ralph Lauren offering advice.

Claiborne eventually bought Aeffe’s stake in the designer’s business.

“We helped Narciso set up an operation independent of the Aeffe organization and separate of the Liz Claiborne corporation,” McComb said. “We also saw Narciso stretch and grow creatively with two major collections. We didn’t get as far by now as we had planned, however. Both sides would have liked to have achieved more.”

The termination of the partnership also could be seen as a symbol of the challenges of marrying a major fashion talent with the demands of a multibillion-dollar public company, particularly one that faces its own financial hurdles. Claiborne has been plagued by transition pains and has been posting losses. In mid-August, the vendor posted a loss of $23.2 million in the second quarter, narrowed guidance for the year and scaled back plans for retail expansion.

Asked what he learned from the partnership with Rodriguez, McComb said: “Opportunities like this partnership come with their own timing — in this case, a pressing urgency. Though our company was in the throngs of change, we believed it was important to evaluate and potentially act on innovative opportunities — opportunities that may, in fact, inform a longer-term strategy. That said, our corporate mission, strategy and priorities are clear now, and when our respective organizations’ increasingly divergent views on how to organically grow the Narciso Rodriguez brand became clear, terminating the partnership was in the best interest of both parties.”

As for the designer’s future, Rodriguez said he is looking forward to “this independent time,” while exploring several different options. “Our business is on target and we have full confidence in the future of the company,” he said. “We are also enjoying tremendous success with our fragrances and are now exploring various licensing opportunities.”

Rodriguez signed his fragrance deal with Beauté Prestige International, a unit of Shiseido Co. Ltd., in fall 2001. Since then, the deal has yielded a women’s and men’s scent — Narciso Rodriguez for Her, which bowed in September 2003, and Narciso Rodriguez for Him, which hit the market in July 2007 — as well as ancillaries to both fragrances. Industry sources estimated that Narciso Rodriguez’s U.S. fragrance business generates annual retail sales of more than $12 million. In the U.S., the scents are distributed in around 500 high-end specialty stores, including Saks Fifth Avenue. Rodriguez is said to be working on a new women’s fragrance, which could bow as soon as the spring.

According to Rodriguez, the company has been looking to hire a president “for some time,” and the search will continue.

“The spring collection was very well received,” Rodriguez said. “We feel quite fortunate in these challenging economic times that our retail partners have given us so much support and have expressed such confidence in the strength of our collection.”

And Rodriguez is already thinking beyond spring. “We are fully immersed in development of the early fall collection as well as the planning of the fall-winter collection,” he said.

 

[Needlecrush]

It is not a surprise!