The Shophound

Closing Before Their Time: Virgin Megastores Not Losing Money But Closing Anyway

Here's some disturbing news about the impending loss of New York's only major music stores, the two Virgin Megastores in Times Square and Union Square. According to Michael Stoler's report in The Real Deal yesterday, the stores remain profitable. The Times Square unit, once the jewel in the crown of the chain, made $6 million in profits on $55 million in sales. Union Square's $40 million gross also yielded profits according to Stoler. Apparently, someone is still buying CDs. They are only closing because the chain is now owned by its landlords, Related Companies and Vornado Realty Trust, who are shuttering the stores in favor of tenants who will pay a higher rent. In fact Forever 21 is taking the Times Square space for a reported $20 million a year. They are going to have to sell a lot of those cheap dresses.
Here's the thing: usually, stores close because their business is bad, but Virgin's isn't. In fairness, it's probably because they are the last player standing in the record store game, but while their market is shrinking, it hasn't vanished just yet, and may still be viable at their two stores for years to come. Even when Tower Records closed as a result of bankruptcy, its New York City stores were cited among the chain's few profitable locations.
So what's the big deal? When the Virgin stores are gone in a few months, there will no longer be a single major store in New York City devoted to music. There will be a few independent specialists, and major releases will be found at places like Best Buy and Target. Anyone looking for a wide selection of import CDs, classical music or anything out of the ordinary will be forced to search the internet, which may seem more efficient, but can never really match the convenience of simply walking into a store with a vast selection to buy something you can count on them having.
So why is this happening? It's because Virgin is now owned, at least until it is folded completely, by people who aren't remotely interested in being retailers. It's a doomsday scenario for any store, profitable or not.
Goodbye to America's Mega-Music Stores By Michael Stoler (The Real Deal)

Red Carpet Disappointment:The Jolie-Pitts Get HitBy The Ugly Stick

The Screen Actors Guild Awards were last night, offering yet another opportunity for glamorous Hollywood stars to get gussied up and pose on a red carpet as the second act in televised award show circuit leading up to the Oscars on February 22^nd.
There were lots of pretty ladies in pretty dresses, and we can't possibly sift through them all. Style.com did, and you can see it here.
We do have to pause for a moment to ponder what we must call the curious case of the Jolie-Pitts, Angelina and Brad.
Here we have the two-time sexiest man alive with his companion who has been called the most beautiful woman in the world more times than anyone can count,
But not last night.
It would appear that both of them are on a campaign to subvert their natural beauty.
And how they have succeeded!
From what we can tell, Brad is finished filming Quentin Tarantino's WWII epic "Inglorious Basterds", so it would be time to lose that oily Errol Flynn mustache. He looks alright with it, but not nearly as good as he does without it. As for his Tom Ford suit, it looks well tailored but in desperate need of a tie. Also, it apparently is not a tuxedo, which it should be at a black tie event. And, finally, those pants are way too long, which is inexcusable in any event.
And on to La Jolie, who told E!'s Giuliana DePandi Rancic that she just wanted to wear something comfortable.
Well, shoot, Angie, you should have just worn your bathrobe. We're betting it looks a lot sexier than this drab, shapeless bit of Max Azria frumpery. Of course, she'll always have that gorgeous face, and thankfully, she had decided not to grow a mustache of her own, but geez! We're your fans. What did we do to deserve this?

Too Much Too Soon:Kira Plastinina On The Rocks?

Over the weekend we (and we're betting several other fashion themed websites) got an anonymous comment, and then an email (now unpublished) about Russian wonder-teen retail chain Kira Plastinina. According to the comment —which we at the time we felt was unsubstantiated and not to be remotely taken as fact— The chain's U.S. operation (consisting of 12 stores) is teetering on the edge of bankruptcy.
at the time, we didn't think it was solid enough even for a blog to publish. We generally don't trust anonymous, negative tips because frequently it's just someone who is trying to spread malicious rumors, but now WWD has confirmed that the nascent chain is indeed in trouble.

Difficulties were pegged to the declining fortunes of Plastinina’s father, Sergei Plastinin, a tycoon in the dairy and fruit business in Russia, who bankrolled the U.S. rollout and was heavily invested in the Russian stock market. Shortcomings in how the chain was operated and the impact of the recession in the U.S. were also cited.

Well, we did think that they were coming on a little strong. Apparently, rent is up to date on the stores,  only some of which may close, but it looks like Kira Plastinina's moment will have been exceedingly brief.
Kira Plastinina U.S. Stores Face Closure (WWD)
The text of the mysterious email after the jump.
Previously: Kira Plastinina: Even Pinker Than We Thought

Designer Revolving DoorAlessandra FacchinettiOut At Valentino

Alessandra Facchinetti cannot catch a break.
When she was appointed Valentino's successor last year, it was seen as a redemption of sorts after having been let go from her job as Tom Ford's successor at Gucci.
Sadly, succeeding a celebrated designer has not worked out too well with her, as it is widely expected she will be dismissed shortly. Her Prêt à Porter collection show was today (see pictures here).
Valentino accessory designers Maria Grazia Chiuri and Pier Paolo Piccioli are expected to succeed her, though rampant speculation centers around Giambattista Valli. His retro-inspired collection (see it here) referenced many Valentino hallmarks, and was widely seen as an unofficial audition for the top design job there. Similar things were said about John Galliano's Spring 1995 Collection (see it here and here for a reminder of what a mid-90s supermodel extravaganza was like. Good times). Many called it an audition for Dior, and we all know how that turned out.
We had no idea that Facchinetti was dong such a dreadful job, as her first efforts have only just reached sales floors, and the current climate is hardly the best to judge her success or failure. Some have suggested a clash with management, which was also blamed for her Gucci exit, but we will all know very soon what her fate with the house will be.
Fashion Scoops: Facchinetti Exiting Valentino (WWD)
Valentino Spring 2009 Collection (WWD)

Preparing For Departure:NoLita's Mayle Set To ShutterEarly Next Year

Designer Jane Mayle has announced that her popular Elizabeth Street boutique will close next February as she folds her decade old label. The holiday/resort collection will be her final delivery, and she will not offer a Spring 2009 Collection. Mayle tells WWD that accelerating market dates and promotional pressures were important factors in her decision to close her business, and the end of her store's lease offered fortuitous timing:

"It seems like a commercial cul-de-sac in a way that the customer gets tired before collections even hit stores," Mayle said. "How I came into this business was all about dreaming and building a wardrobe you would be seduced by. That mystery and remoteness ans insouciance have disappeared from fashion in order to accelerate the product. I feel I have just become another cog in that machinery."

Mayle certainly isn't the first designer to be disillusioned by the pressures of the rag trade, and she maintains that her business is healthy with $5 million in sales a year from 65 wholesale accounts. We have to give her credit for leaving when her interest has ebbed rather than letting her label chug along on autopilot without inspiration, but both her retail and wholesale customers will surely miss her original and personal designs that managed to find an enthusiastic audience without benefit of the advertising and publicity she eschewed. She promises to return to fashion in some other capacity, but just what that will be remains to be declared. In the meantime, her shop will be open at 242 Elizabeth Street until February offering your last chance to pick up her final collections.
Jane Mayle To Close Business (WWD)

Oh, The Irony Of The Extinct

Nothing like a trip to Urban Outfitters to make us feel like Methuselah.
Anyone who recognizes the logo on this t-shirt will probably understand the flash of nostalgia that hit us when we saw it earlier today.
For those of you unfamiliar with Peaches Records & Tapes, imagine a big barnlike store filled with bins of vinyl 33 RPM LP record albums as well as cassettes for those fortunate enough to have a Walkman portable tape player.
OK, this goes back a good couple of decades. Let's just say that Peaches was the place to be on the day that the new Pat Benatar or Police album came out. It was suburban record store heaven.
Now of course, Manhattan's once bountiful music retailers have been reduced to a pair of Virgin Megaastores, soon to be only one or possibly none, and Peaches, now long shuttered, is but an ironic reference for a young hipster who probably never owned an actual turntable record player.
Yeah, we know. Time to order that walker.

No News Is Bad NewsFor Steve & Barry's

Things are not looking bright for Steve & Barry's. As their deadlines approach, it's looking less likely that the attention-getting chain will find a partner to keep it running, or even be able to sell the chain which reaps an estimated $1 Billion a year.
WWD reports that while there are still investors interested in retail opportunities, they are not willing to take a chance on dissed businesses like S&B. As a privately held company, Steve & Barry's is under no obligation to disclose anything about its current situation, and they have reportedly been talking to possible suitors, but nothing has been confirmed. Terms like liquidation are being tossed around by the press, which doesn't help matters. What this means for the high profile stable of licensed brands like Stephon Marbury's Starbury and Sarah Jessica Parker's Bitten is uncertain, depending on whether the chain is actually sold, and the terms of the celebrities' contracts, which can be very strict.
Here's what we do know: Nobody should be waiting to see a Steve & Barry's open on Broadway & 4th Street anytime soon... if ever.
Why does it matter? For starters, if the chain fails, it will be one of the most stunning flameouts in recent retail memory, affecting not only the company's principals but also the many stars with whom they have gone into  business. On anothe level, a lot of people need inexpensive close, and you can do a lot worse than Steve & Barrys. It could be a great disappontment for a growing customer base that will be left high and dry.
Steve & Barry’s Squeeze: Without White Knight, Liquidation a Possibility (WWD)

Business Update:Steve & Barry's On The Ropes

It's the same old story: Too much too soon.
Newly high profile retailer Steve & Barry's may be vanishing as quickly as it came to our attention.
Wasn't it only weeks ago that they announced the seemingly unstoppable chain would take over the former location of Tower Records at Broadway and West 4th Street? Now it seems unlikely that a store will appear there anytime soon, as Steve & Barrys has retained the services of Conway, Del Genio, Gries & Co., a restructuring firm specializing in turnarounds while Goldman Sachs Group scrambles to scrape together $30 million in emergency financing to cover a string of unpaid bills that are just coming to light.
Things are looking dire for the company that gained notice when Stephon Marbury chose them to launch a line of affordable branded clothing, and later went mega-huge nearly overnight with the publicity from Sarah Jessica Parker's Bitten line. A string of other celebrity endorsed and designed collections followed including efforts from Venus Williams, Amanda Bynes, surfer Laird Hamilton and golfer Bubba Watson.
The problem? Those low, low prices everyone loves so.
Despite growing their volume to nearly $1 billion, their profit margins are still so narrow that the chain was unable to properly finance its rapid expansion plans leaving local contractors, advertising bills and even some longtime vendors unpaid. There are rumors that the retailer may have to file bankruptcy as early as next week.
Will Steve & Barry's vanish from the public's consciousness as quickly as it appeared, leaving its stable of celebrities with egg on their collective face?
Stay tuned. this story is developing.
Steve & Barry's Hits Trouble: Hyped Clothing Retailer Hires Turnaround Help (Wall Street Journal)
Steve & Barry's (Official Site)

Endangered Sites:Kate Spade Horning InOn Bleecker Street

Yeah, what a surprise...
It's no secret that hardly anyone can afford to renew a lease on Bleecker Street these days. The expulsion of its classic tenants continues like some sort of ruthless ethnic cleansing intent on bringing national brands to cluster on what is essentially a small, West Village neighborhood street.
The latest corporate interloper is the Liz Claiborne Inc. owned Kate Spade, a brand that not only has two other stores in Manhattan already, but like so many of the street's latest additions, is long past the moment when it had any semblance of hip newness or fashion clout. According to our friends at RACKED, the store's address will be at 400 Bleecker, which is currently shared by both the Eve Salon and the Biography Bookshop, but we don't yet know which store is getting the boot. Sadly, our guess goes with the bookshop, since, as a longtime Bleecker fixture, it would follow current form for them to be unceremoniously expelled, and, frankly, having been there for a long time, they would be most likely to face a drastic rent hike. It's also in the kind of corner shop space at West 11^th Street that other retailers covet shamelessly. It would be doubly sad to lose yet another independent bookstore, an endangered species, but if forced to move, perhaps they will be able to take some of the newly emptied space on nearby Hudson Street.
We will have more news when we know exactly where Kate Spade will be setting up shop.
Storecasting First Word: Kate Spade Bags Bleecker St Space (RACKED)

Disturbing Runway Trends:Milan Menswear Edition

Sometimes there's nothing more entertaining than watching fashion designers take leave of their senses. Of course, The Shophound has not gone to Milan for the Men's Collections, but we can see enough on our trusty computer to enjoy one of our favorite pastimes: picking out the ridiculous outfits that nobody will ever wear.
Above, please find a selection from Roberto Cavalli, who after a few subdued seasons, has returned to his usual flamboyance with a vengeance, and a trip through a Pat Benatar video.
Is it time for tight, fancy patterned pants again?
No.
Will it ever be time for tight, fancy patterned pants?
Only if you are Pat Benatar.

Here's Prada. Last season (or this Fall) they gave us halter vests and little pleated tutus for men. This time, it's the equally dubious contribution of waist cropped tops and open jackets suspended from straps to create a deep V portrait neckline, offering glimpses of various sections of a hairless torso. One doesn't have to think too hard to see the perils of such a look on the even slightly less toned and more hirsute. Evidently, jackets will be largely worn without shirts next year. It's always important to remember that what Prada sends down the catwalk is generally barely represented in even its own stores by the time the actual selling season rolls around. If you are wondering who is actually going to wear these clothes, don't bother. most of them will never be produced.

It is clearly the season of the Torso, and here's Emporio Armani, also implying that shirts will be thoroughly superfluous next year. Thankfully Mr. Armani has kept to his tradition of using models who though waxed within an inch of their lives are at least old enough to drink legally and clearly know their way around a gym. Get to work on those crunches, because a flabby midsection will never look right with those shiny culottes everyone is sure to be sporting next year.
It seems that nobody is immune to the temptation to use silly runway accessories.
Even the usually understated and conservative Salvatore Ferragamo felt compelled to finish off their looks with strands of beads or braided velvet.
Not girly looking at all.
Oh, and then there's the jumpsuit in the middle there.
Always good to see what we won't be wearing next year.