STORE INTERRUPTED: There's A Huge Nike Store In SoHo Just Itching' To Get Open

SoHo's Nike Store on November 11th, 2016, the day it was to have opened

Real estate in New York City is a pretty ruthless business. There are fights between developers and cummunity boards and local politicians all the time, but it is unusual for the opening of a 55,000 square foot retail flagship to have its grand opening legally halted just hours before the doors were to be unlocked. That, however is what has happened to the new Nike store that was to open last Friday on the corner of Broadway and Spring Street in SoHo.
In a feud pitting Manhattan Borough President Gale Brewer, Community Board 2 and various other local officials against the Department of Buildings, the long awaited Nike store sits fully stocked and presumably staffed with its opening indefinitely postponed. The complaint concerns building regulations about the size of the store allowed in the space and the permits issued to redevelop 529 Broadway, the building that contains it. The protesters want Nike's certificate of occupancy recinded because, the company and the developer allegedly did not apply for the special permit required for stores over the 10,000 square foot limit imposed by the area's zoning rules. In addition, it is alleged that the DOB issued an alteration permit to build the building rather than demolition one. All of these discrepancies require greater public and oversight. Brewer and her cohorts allege that they were denied their rightful input by the DOB's arbitrary permit granting policies which allegedly favor developers over community input. Further arguments include details about party walls and how much of the original building on the site was retained that fall into the category of real estate arcana. The upshot is that Brewer and company have chosen the Nike Store to make their stand against the DOB. Now eager sneakerheads who were erroneously lined up outside the store on Friday morning will be waiting indefinitely until an agreement between all parties can be reached to grant Nike the temporary certificate of occupancy it needs to open its doors.
Brewer and company probably feel that a huge multibillion dollar corporation and presumably greedy developers are easy and suitably high-profile targets for their cause, but perhaps they shouldn't have waited until hours before the store was to open to throw a wrench into everyone's gears. The building has been under construction for years. Nike's plans for the store were also not a secret. Did they really need to wait until the last minute to protest improprieties? Now, there are not only eager customers waiting to shop at a major new store from one of America's most popular brands, but also a whole staff of workers for the multilevel store who expected that their jobs would start last Friday. It is not known how long Nike will be willing to pay managers, sales and stock staff for a store that is not being allowed to open and isn't selling anything. The company has already had to cancel at least one of the new product launches that bring customers streaming to their stores. Hopefully, the parties will be able to resolve their dispute in a timely manner. It seems unlikely Nike will actually have to pack up its big new store and find it another home, but now wonders if the city is really doing itself any favors by forcing it to sit idle right at the point it was ready to open.

BOMBSHELL REDUX: Alber Elbaz Is Leaving Lanvin

 

Alber winning the SUPERSTAR Award! We love you Alber ❤️ #MerylStreep #AlberElbaz 📷 Courtesy of FGI / Matteo Pradoni / BFA.com. @fginyc

A photo posted by LANVIN (@lanvinofficial) on Oct 28, 2015 at 8:02am PDT

So, basically, no designer is secure in his or her job unless they also own the company outright.
Today, on the heels of Raf Simons' exit from Christian Dior, Lanvin announced that the designer who seemed most secure in his position at a great Parisian maison, Alber Elbaz, would be leaving his job as creative director there following a disagreement with the company's major shareholder.
The obvious conjecture is that much as they did with Nicolas Ghesquiere, who left Balenciaga and landed at Louis Vuitton, Bernard Arnault and LVMH will scoop up the much loved designer and install him in the corresponding post at Dior that Raf Simons just vacated.
Whether or not that will happen, and the hopes of Elbaz's many fans and probably a lot of retailers are certainly pinned on it, remains to be seen, but there is a similar scenario connecting the situations of both Ghesquiere and Elbaz. Both can be credited with not only reviving storied French couture houses which had fallen into quasi obscurity, but reshaping them from the bottom up and catapulting them to the forefront of the fashion scene in Paris. Both departed their respective companies with equity stakes originally meant to keep them tied to the houses and resistant to potential poaching by competing labels. Both left as result of unhappiness with upper management, requiring costly buyouts of their ownership stakes.
A hint of Elbaz's recent state of mind can be gleaned from an acceptance speech he gave just last week when he was honored at Fashion Group International's annual Night of Stars gala, pictured above with presenter Meryl Streep in an Lanvin Instagram post from earlier today. In an unexpectedly long speech, Elba expounded on the relentlessly accelerating pace of the industry and the pressure it puts on designers' creative process. Would Elbaz even want the notoriously high pressure job at Dior which comes with its own limitations and pressures? He has been rumored to have interviewed with LVMH for open design positions in the past, but ultimately choosing to remain at Lanvin where he has had his greatest success. Elbaz released the following departure statement of his own:

"At this time of my departure from Lanvin on the decision of the company’s majority shareholder, I wish to express my gratitude and warm thoughts to all those who have worked with me passionately on the revival of Lanvin over the last 14 years; express my affection to all my wonderful colleagues in the Lanvin ateliers who accompanies me, and who enriched and supported my work. Together we have met the creative challenge presented by Lanvin and have restored its radiance and have returned it to its rightful position among France’s absolute luxury fashion houses.

"I also wish to express my profound and deepest gratitude to all of the clients and friends, to the French and international press and to all those business partners who collaborated with Lanvin, providing us with support since 2001."

"I wish the house of Lanvin the future it deserves among the best French luxury brands, and hope that it finds the business vision it needs to engage in the right way forward."

With two of the biggest design jobs in Paris now open, let the speculations fly, but it must be noted that well-known Elbaz fan and friend Natalie Portman has a fragrance endorsement at Dior, but often appears in Lanvin when her contract allows her to wear other labels. There's one person who would likely be thrilled to keep her favorite designer's clothes coming, regardless of what label he designs under.

Alber Elbaz Leaving Lanvin, Label Confirms (Business of Fashion)

LUXURY DISPUTES: Hermès Is Politely Feuding With The Birkin Bag's Namesake

What do you do when the person whom you have named your most famous product after slams you in the press?
This week, actress Jane Birkin caused a fashion scandal by publicly asking Hermès to remove her name from the crocodile version of its signature Birkin bag after having seen a video produced by People For The Ethical Treatment of Animals that detailed brutal slaughtering and skinning methods of alligators and crocodiles. It appears that Birkin would like for her name to remain on the other versions of the famous handbag, but be removed from the luxury crocodile version (pictured at left) which can cost tens of thousands of dollars.
In a response statement issued today, Hermès International states, “Jane Birkin has expressed her concerns regarding practices for slaughtering crocodiles. Her comments do not in any way influence the friendship and confidence that we have shared for many years. Hermès respects and shares her emotions and was also shocked by the images recently broadcast.”
While it declined to rename any of its products, the French luxury label stated that the farm depicted in the video is not one of its suppliers and is also under investigation for violating approved slaughter methods for alligators and crocodiles, whose use has been highly regulated since being removed from the endangered species list decades ago. The company indicated that not only does it meticulously follow established rules and regulations in acquiring animal skins for its products, it also visits its suppliers on a monthly basis to ensure that standards are being upheld.
Ultimately, this is a case of PETA attacking a famous animal product using brand and taking advantage of a celebrity connection for extra publicity. The advocacy group is famous for showing grisly videos of animal abuse and slaughter to gather support for its cause, but it may now be better understood that one cruel and abusive factory does not accurately represent an entire industry. Hermès like many other famous companies focused on leathergoods (Fendi, Gucci, Louis Vuitton etc.) has probably become used to attacks from PETA and other similar groups and appears unfazed. Where Jane Birkin will ultimately fall on the dispute remains to be seen, but while PETA has gotten a few days of publicity out of the deal, it seems unlikely that anything will change at Hermès.

Hermès Responds to Jane Birkin Appeal (WWD)

POLITICAL FALLOUT: Macy's Officially Dumps Trump

We were pretty sure that this was a decision that had to be made quickly, and it was. Following on the heels of

A selection of Donald Trump merchandise available as of yesterday at Macys.com

NBCUniversal, Univision and several other companies, Macy's Inc. has dropped Donald Trump merchandise from its 789 stores.
A statement released today reads:

“Macy’s is a company that stands for diversity and inclusion. We have no tolerance for discrimination in any form. We welcome all customers, and respect for the dignity of all people is a cornerstone of our culture. We are disappointed and distressed by recent remarks about immigrants from Mexico. We do not believe the disparaging characterizations portray an accurate picture of the many Mexicans, Mexican Americans and Latinos who have made so many valuable contributions to the success of our nation. In light of statements made by Donald Trump, which are inconsistent with Macy’s values, we have decided to discontinue our business relationship with Mr. Trump and will phase-out the Trump men’s wear collection, which has been sold at Macy’s since 2004.”

This comes in the wake of a moveon.org petition that garnered over 7000,000 signatures in a few days protesting the real estate mogul and declared presidential candidate's statements about Mexican immigrants earlier this month while announcing his candidacy. His characterization of them as drug-ridden criminals and rapists incensed many in the media world and caused Univision to drop the Miss USA and Miss Universe pageants and NBCUniversal to also cancel the pageants as well as sever all other ties with him, effectively banning him from returning to The Celebrity Apprentice reality show should he not get elected to the highest office in America.

Macy's has sold Trump branded merchandise for about 10 years, and often used him as a spokesperson for the store most prominently in TV adds along with Martha Stewart, Tommy Hilfiger, Sean "P.Diddy" Combs and other designers and celebrities whose product lines the store carries exclusively. The most recent such personality is Mexican singer and actress Thalía, whose collections launched at the chain earlier this year in an effort to invite more Latino customers to shop at Macy's. That would, of course, be at odds with showcasing Trump's merchandise, especially as the list of companies and celebrities distancing themselves from him grows longer. WWD describes Tump and Macy's CEO Terry Lundgren as "golf buddies", and notes that Macy's has also been a supporter of the Ice Skating in Harlem program for young girls, which holds an annual benefit at Trump (formerly Wollman) Rink in Central Park. There's no word whether or not that sponsorship will continue. At this point, Donald Trump's theory that his business experience makes him a good choice for president seems only to be proving that, at least at a consumer level, politics and business are better off staying as far away from each other as possible.

Macy’s Dumps Trump as Firestorm Over Comments Grows (WWD)
Previously,
Political Minefield: Macy's Under Pressure To Sever Ties (And Shirts And Suits) With Donald Trump

POLITICAL MINEFIELD: Macy's Under Pressure To Sever Ties (And Shirts And Suits) With Donald Trump

And the shoe is on the other foot.
Will Donald Trump's retail partners now give him the boot as well?
Yesterday, Donald Trump who has reveled in dismissing contestants from his reality show "The Apprentice" with a curt "You're Fired!" got a taste of his own medicine when NBCUniversal announced that it would no longer air the Miss USA and Miss Universe pageants which they both co-own, and end its relationship with him altogether. Initially, Spanish-language network Univision announced that it would drop the pageants in response to Trump's comments about Mexican immigrants in his speech earlier in June announcing his candidacy for the presidency. He referred to them as mostly criminals and rapists which incensed not just Mexican but many other immigrant communities from Latin America and beyond. Now that NBC has followed suit by ending its association with the real estate mogul, who had already announced he would not be hosting upcoming seasons of "The Apprentice" while he campaigns for President, attention turns to Macy's which sells men's tailored clothing, furnishings (pictured above) and home items under the Donald J. Trump and Trump Home labels as well as his fragrance called Success. WWD reports that a moveon.org petition garnered over 700,000 signatures on Monday, pressuring the store to dump Trump's brands which it carries exclusively. Trump's anti-Mexican screed has put Macy's at odds with its efforts to target Hispanic customers including a huge private brand launch earlier this year featuring Thalia, the Mexican singer and telenovela star. Macy's may be weighing its potential Thalia business against its current Trump business right now, because in classic fashion Trump has remained unapologetic about his statements, instead choosing to slam Univision and NBCU for dismissing him and his productions. Will Macy's be next in line for Trump's retaliatory vitriol? Time will tell, but this issue seems to be gaining traction rather than blowing over as the typically self congratulatory businessman discovers that being a general jerk gets taken very differently once you officially put yourself forth as a candidate for President.

Group Calls for Macy’s to Drop Trump Brand (WWD)

REAL ESTATE RUMPUS: Vera WangBattles Her SoHo Landlord

Inside the SoHo boutique Vera Wang may lose over a dispute with her landlord.

Retail real estate is renting at such high levels right now that it doesn't really matter if a landlord has a prestigious and desirable renter. Tenants who aren't paying optimum prices for leases in pricey neighborhoods are almost guaranteed to be pushed out including tony designers like Vera Wang, who has just sued the landlords of her Mercer Street boutique in SoHo (pictured left). Premier Equities purchased the retail condo of 158 Mercer Street earlier this year and promptly billed her for $272,000 in back taxes on her $45,920 monthly rent since her store opened in 2007. Wang contends that the previous owner covered the taxes, and the new owners simply want to oust her because she is paying around $220 per square foot while the average asking rate is now nearly $1,000 for a location like hers. While Wang's lease is up in 2016, she has the option to renew for five more years, which would make it a long wait for the owners to optimize their revenues from the building's retail space. How the case will shake out remains unclear, but it shows that landlords, particularly ones that have just taken over a property with existing clients, are becoming increasingly ruthless, even with presumably enviable clients.

Bridezilla: Vera Wang sues landlord to keep Soho lease (The Real Deal)

TODAY IN LOST CAUSES: Delusional Man Files Lawsuit To Stop The Madison Avenue Apple Store

Well, you can't please everybody.
Since it was discovered that an Apple Store was opening on the corner of Madison Avenue and 74th Street, (pictured at right under construction) a group of neighborhood residents has been protesting that new establishment would destroy the genteel character of the neighborhood and create disruptive lines with the company's periodic product launches. Last week, 89-year-old Herbert Feinberg, a longtime neighborhood resident and the leader of this NIMBY protest, filed suit in Manhattan Supreme Court to prevent the store's opening which is scheduled for this Saturday, June 13th. Court papers state, "Madison Avenue is one of the great New York City Streets ... (and local residents) are opposed to the congestion and commercialization of the neighborhood that the store will bring,” as the suit attempts to prosecute complaints about the upcoming store such as the "massive increase in pedestrian traffic" it is expected to bring. According to Feinberg, the neighborhood is only meant for small luxury boutiques and galleries. Despite the measurable drop in traffic since the Whitney Museum at Madison and 75th decamped for the Meatpacking District, The Metropolitan Museum of Art which is planning to make use of the building in the coming months, is expected to make up the shortfall with even larger crowds. The suit also refers to the over 400 signatures Mr. Feinberg has collected to block the store as the leader of group called "Saving the 74th Street Residential Neighborhood." Of course, it has been widely reported that merchants on Madison Avenue above 72nd Street are suffering from the drop in traffic since the Whitney's departure, and are actually hoping that the Apple Store will do exactly what Mr. Feinberg is predicting it will in bringing shoppers to the area. 
According to the Daily News, Mr. Feinberg has taken it upon himself to personally file suit because the city officials responsible for such zoning issues had ignored his pleas to save the neighborhood from this retailing scourge, which would actually suggest that they are ignoring frivolous and unreasonable complaints, hopefully in favor of dealing with more pressing issues. Though The Shophound is not a legal expert, it is hard for us to imagine that any judge not dismissing this case outright , especially since Apple claims to have specifically conceived the store to be in keeping with the neighborhood's hours and character and no actual laws or zoning rules appear to have been violated. It doesn't seem like this will end well for Mr. Feinberg who is likely to have accomplished no more than confirming the stereotype of Upper East Siders as self centered snobs.

Upper East Siders seeing red over new Apple Store opening in neighborhood (NYDailyNews via Gothamist)

SAMPLE CIRCUIT: What Happens When A Sample Sale Gets Out Of Control?

This has been a big week for Sample Sales. The Shophound checked out a few yesterday, and found a patient line outside of Band of Outsiders, eager shoppers still scooping up bargains at the ICB/J.Press/York Street/Cardigan sale and a calm shoppers perusing The News showroom where there were still good items to be found from Tim Coppens, Public School and Common Projects among others. Even the Sferra Sale at Chelsea Market was also relaxed but doing good business, with no pushing or shoving. Perhaps the advantage of an abundance of sample sales happening at the same time is that the crowds get spread out making it easier to shop all the sales —a theory that might hold true until you get to Manolo Blahnik.
Yesterday, the crown jewel of every Sample Sale season took place as it always does at the Warwick Hotel in midtown, but all reports have all hell breaking loose as shoppers fell into the worst possible behavior to be found when there are bargains to be had. It's not like this is a rare occurrence. We know there will be a Manolo Blahnik sample sale every season, but this time they were cagier than usual, with rumors circulating that it would be last week, and then confirmation that it would happen for sure yesterday without any specific hours announced. Manolo's folks really weren't out to make getting inside easy for the non-VIP, but enough people knew the drill for about 100 of them to get in line on Thursday morning to get an entry ticket. What happened when they were let in was, reportedly, total mayhem. Our friends at Racked report that what was once a relatively civilized event that often had André Leon Talley holding court and advising shoppers had devolved into a circus of hoarders who had ransacked the place, indiscriminately filling the sale's own plastic bins from under the tables with as many pairs of shoes as they could grab and hauling them to the cashiers.
This is what is commonly known as eBay reseller behavior, but it is rarely demonstrated with such blatant zeal. On the one hand, some companies really don't much care who buys the goods at their sample sales as long as they clear out of their old merchandise, but on the other, sample sales are not meant to be de-facto wholesale opportunities for small-time online entrepreneurs who can make a nice profit when prices start at $100.
How the folks at Manolo Blank will react to the eBay invasion remains to be seen.
Will they shrug their shoulders and carry on as always?
Will they impose a limited number of pairs to purchase per customer? After all, does anyone really buy more than 6, 8 or 10 pairs just for themselves at this sale?
Or, will they just abolish the sample sale altogether? (All together now: This is why we can't have nice things)
Maybe they will move it to another city like L.A. or Chicago where they can count on a sophisticated population who would jump at the rare chance to have a Manolo Blahnik sample sale in their own city.
We will have to wait and see.
The Shophound has certainly seen more than our share of eBay resellers at sale events, but they tend to maintain some degree of discretion as they load up their arms with goods. If it comes to the point where they are hoarding the goods away from everyone else, will we see the end of our favorite sample sales as designers turn to alternative methods for disposing of their overstock?

Manolo Blahnik's Sample Sale Is a Stiletto-Strewn Hellscape of Hoarding, Aggression (Racked NY)

CONTINUING SAGA: American Apparel Battles Dov Charney With More Abuse Complaints

Two controversial apparel CEOs lost their jobs last year.
One, Abercrombie & Fitch's Mike Jeffries apparently recognized when it was finally over for him and left without creating a public spectacle.
The other, Dov Charney (pictured right), the founder of American Apparel, has been fighting tooth and nail to regain his position and control of the company he created, but it's not looking good. After his initial ouster, Charney joined forces with hedge fund Standard General in an unusual deal that combined his stock with their financial backing to regain control of the chain. Ultimately Standard General wound up supporting the board in its firing of Charney for a host of reasons, the most attention getting being his inappropriate behavior in the workplace over the years as well as allegedly misusing funds. Feeling double crossed, Charney has been pursuing legal action, but new reports have American Apparel gathering a sizable dossier of complaints from employees over the years about workplace conditions regarding their former boss's behavior. According to Bloomberg News, the complaints are recorded in e-mails as well as video and audio recordings and include incidents of Charney throwing a medicine bottle at an employee as well as calling another a "slut" and a "whore". A departing employee reportedly stated, "I’m afraid to return to work and face further abuse," in a resignation letter. An unnamed former American Apparel executive is said to confirm the reports that the former CEO was verbally abusive in the workplace causing several employees to quit as he was given to foul, derogatory language and embarrassing staffers in front of coworkers. Aside from the obvious inappropriateness of the behavior, it seems clear that Charney created a reputation for the company's workplace that made it difficult to retain highly qualified employees as well as attract new ones.
Charney denies the reports, and his lawyers are questioning the authenticity of the documents, though it is known that the company settled several sexual harassment lawsuits out of court during Charney's time running the company. What we do know for sure is that this feud is getting uglier and isn't looking like it will end anytime soon. One would have to ask the question, if Charney did somehow regain his position at American Apparel, how would he and the company look after the dirty fight that would have gotten him back there?
As the company attempts a turnaround under new CEO Paula Schneider, it's stock price has tumbled, and th  most recent quarterly reports indicate a wider loss that the company will make up for by selling stock. Charney claims that he has been pushed out because the board wants to sell the company, which it denies, but if business doesn't pick up for American Apparel, it's hard to imagine how it can remain independent for much longer.

American Apparel Has a Dossier of Complaints Against Former CEO It Can Use (Bloomberg)

HUMAN RESOURCES: What Got The New President Of Saks Fifth Avenue Fired After 15 Months?

Saks Fifth Avenue surprised the fashion and retailing industry yesterday afternoon by announcing that its new, high-profile president, Marigay McKee, had left the company and would be replaced by Marc Metrick (pictured right), executive vice president and chief administrative officer of the Hudson’s Bay Co. A year and a half ago, hiring McKee's away from Harrod's in London was considered a coup for Saks which had just been acquired by HBC. She was unafraid of making herself the face of the retailer, and enthusiastically vocal about her plans to upgrade the chain's stores with a higher luxury quotient to better compete with rival Neiman Marcus —particularly the Fifth Avenue flagship, which seems to be continually in a state of reconfiguration and renovation. McKee seemed almost like a throwback to flamboyant merchant princes like Marvin Traub of Bloomingdale's or Stanley Marcus who ran their companies with a hefty dose of dazzle dazzle.
So why did HBC's glittery new hire go sour so quickly? In today's post-mortem in WWD, David Moin seems to suggest that it was not her professional abilities but her management style that got her canned. According to unnamed sources, McKee stepped on many toes which led to the departure of too many valued longtime Saks personnel including most prominently chief merchant Jennifer De Winter who recently decamped to Tiffany. McKee is described as a not a "good fit" for the store, and as someone whose office frequently saw people leaving in tears after meetings with her. This, apparently, made it difficult to attract new talent to replace fleeing, formerly stalwart personnel who became attractive to other companies, a state of affairs that should be corrected with her departure as searches for several executive positions are under way.
And yet, it's hard to imagine that it was only management style that caused her dismissal. There are plenty of celebrated fashion and retailing executives whose management antics make industry insiders shudder. Was there something more behind McKee's firing? HBC executives stress that the extravagant $250 million re-imagining of the Fifth Avenue flagship store would proceed as planned, although McKee's vision included radically reconfiguring several floors including creating two-level in-store boutiques for luxury labels that would rise from the main floor to the second. A dramatic renovation like that including other plans for the building would likely cost quite a bit more than $250 million in New York City and put the store in a state of construction for years at a time. While Saks has real problems appropriately configuring its space, particularly on its over-packed main floor, that solution might have been overly costly even for HBC which is committed to investing in the store's redesign. McKee's other initiative was to cull the store's vast matrix of vendors and cut loose the brands that weren't making enough profit for the store, but a year into McKee's tenure saw Saks's flagship packed with merchandise, with every possible nook and cranny of the selling floors fitted with a rack for full-priced goods. For a store supposedly devoted to paring down its brands, it looked more like they were buying every possible label they could and throwing them on the floor to see what stuck with customers, as opposed to the strategy of a seasoned merchant carefully crafting an upgraded fashion image. Contrary to increasing the luxury quotient, it made Saks feel more like a moderate department store full of racks —not the best way to compete for customers looking for the most upscale shopping experience.
As for her replacement, Marc Metrick was a 15-year veteran of Saks before he came to HBC three years ago, so he comes with the longtime understanding of the store and its culture that McKee lacked. He is not, however, a merchant, but he looks exactly like the kind of person who is often brought in to steady a ship that has been rocked a bit too hard. So HBC's grand plans to strengthen Saks against its rivals has hit a delay, and the clock is ticking. While Bergdorf Goodman has always been the main store Saks vies with for customers in New York City, its two biggest competitors nationwide, Nordstrom and Bergdorf sibling Neiman's, are headed to Manhattan within the next few years. By then, Saks will have had its second store in the borough open at Brookfield Place in the Financial District. What it needs right now is the right merchant to get it ready for the influx of competition.

Marc Metrick In, Marigay McKee Out at Saks By David Moin (WWD)