The Return of Bill Blass Starring Richard Chai?

On the heels of reports last week that Peacock International Holdings was looking for a new creative director to head the Bill Blass label, it looks like they may have found their man in Richard Chai.

Fashion Week Daily reports that industry sources have said that Mr. Chai has conducted several interviews with Peacock concerning the position of creative director of the label. Of course, both Chai's camp and Peacock have remained mum on the rumor. Says a Chai spokesperson, "I'm afraid we can't comment at the moment". "We can't comment on who we're interviewing for the position," said Scott Patti, executive v.p. of licensing and sales for Peacock. Bill Blass will return on the runway regardless of who is chosen as head designer.

On the surface, Mr. Chai appears to be a good fit for the label. His trademark American sportswear is aesthetically similar to the Bill Blass brand. His resume includes launching the Marc by Marc Jacobs, a stint at TSE, winner of the Ecco Domani award in 2005, a finalist in the the CFDA/Vogue Fashion Fund and a collection for Target's Go! International last fall. Mr. Chai also brings with him a loyal fan base which includes Vogue editor, Anna Wintour and Julie Gilhart, fashion director for Barneys New York.

But will this be enough for Mr. Chai to be able to function at Bill Blass? As we all know, when companies purchase fashion labels, conflict arises between management and the designer with struggles over creative control. So, will Peacock let Richard Chai be Richard Chai, or will they
force him to be beholden to the bottom line?

Peter Som Parts with Creative Design Studios, Cancels Fashion Show

Another retail marriage has dissolved.

Women's Wear Daily reports that Peter Som and Creative Design Studios, a subsidiary of Lord & Taylor LLC, have decided to part ways, undoubtedly due to the economic crisis that has delivered a major blow to the fashion retail industry. As a result, Mr. Som has cancelled his Fall '09 show for NY Fashion Week.

“We have realized that our strategic interests are no longer aligned and feel that this is the best direction for our company at this time,” said Som. “While these are challenging times for luxury brands both small and large, it’s an opportunity for us to reshuffle our deck of cards. I remain creatively inspired and am looking forward to exploring opportunities where we can grow with the right partner, or on our own.” (Source WWD.com)

NRDC Equity Partners, the parent company of Lord & Taylor, created CDS in 2007 with the purpose of working with American designers. They made an initial investment of $10 million in Mr. Som for a two-thirds stake in his company.

“Peter’s talent is enormous but the realities of today’s marketplace have forced us to reevaluate all of our strategic partnerships,” said Susan Davidson, ceo of CDS. “We need to focus all of our resources on our core businesses — Lord & Taylor and The Bay department stores.” (Source: WWD.com)

The last few months have been trying for Som. In Oct. '08, he left Bill Blass, due to lack of finances on the part of NexCen Brands, Inc., the parent of the Blass label. However, Elana Posner, co-owner of Peter Som Inc. remains optimistic, exploring options for the fall.

Here's a thought: Now that Peacock International Group is the new owner of the Bill Blass label, could Som give the Blass brand another shot?

Bill Blass Couture Files For Bankruptcy

The economy is beginning to take it's toll on the high-end fashion industry. The first victim -- Bill Blass Ltd:

The company filed a Chapter 7 bankruptcy petition Wednesday with the U.S. Bankruptcy Court in Manhattan, listing assets of $192,000 and debts of $829,000, court papers show.

The company halted operations last week because it "did not have the financial wherewithal to continue," according to its bankruptcy attorney, Harold S. Berzow of Ruskin Moscou Faltischek P.C. ......

The bankruptcy petition shows the company has $11,250 in miscellaneous assets, including office equipment, $25,000 in inventory, about $90,000 in its bank account and $155,361 in accounts receivable..... (Source: WSJ.com)

This shouldn't come as a surprise. Just before Christmas, NexCen Brands Inc., the parent company, sold its Bill Blass licensing business to Peacock International Holdings LLC for $10 million to pay off debt, and laid off 60+ workers without severance pay.

The question is, Can Bill Blass recover? Here's some advice from former Blass head designer, Michael Vollbracht:

“You need the Blass DNA – it’s crucial,” says Mr. Vollbracht, who also was a personal friend of Mr. Blass’s. “You need to make good, classic clothes for women who don’t like fads. Bill Blass was not faddish.” (Source: WSJ)

I believe they had that with Peter Som, but NexCen couldn't afford him thanks to a $30 million debt they acquired to purchase Great American Cookie. Who knew a lil' ol' chocolate chip cookie would help bring down a fashion empire?

But there's hope. Peacock, with annual sales of $70 million, has plans on reviving the brand "within 9-12 months".

The new owners of the Blass trademark and its nearly 20 licenses plans to focus first on getting its licenses “on the same page – the brand identity is a little uneven,” Scott Patti says. “We’re very intrigued by the international business opportunities of the Bill Blass brand – we believe NexCen hasn’t even scratched the surface of that worldwide.” When asked about the potential for the brand, he notes that the Blass brand once did sales of $500 million annually. (Source: WSJ.com)

Stay tuned........