A Paris judge on December 17th approved a 10 Million Euro (11.27 million) settlement, offered by prosecutors to LVMH owned by Bernard Arnault, the world’s third-richest person according to Forbes magazine that shuts down a criminal probe in the luxury group’s role in a “spying” case which involves the ex-top boss of France’s security services.
“This ruling infuriated François Ruffin, a journalist, filmmaker and leftwing politician who made headlines in 2016 with “Merci Patron!” (Thanks Boss!), a film that skewered Arnault as a heartless tycoon impoverishing the French working class.”
Ruffin filed a lawsuit in 2019 claiming that LVMH contracted the former head of France’s DGSI domestic intelligence agency, Bernard Squarcini, to spy on him for almost three years while filming the movie, that won a Cesar (the French equivalent of the Oscars) as best documentary in 2017. Ruffin had requested the court to refuse the settlement, saying 10 million euros was just 0.02 percent of the nearly 45 billion euros in revenue last year for LVMH.
“Can justice be bought so cheaply? The answer is yes,” Ruffin told journalists after the hearing Friday. It’s a blank check for all future spying operations by multinationals. All LVMH had to do was pay to get out of the proceedings.”
Quiet Logistics a third party supplier chain for over 50 customer direct brands which utilizes a hybrid of human and robotics capabilities. With eight fulfillment centers, and based in Devens, Massachusetts creating inventory efficiencies and providing affordable same-day and next-day delivery options to customers and stores.
Quiet Logistics was acquired this month by American Eagle Outfitters in a all cash deal for $350 million this month. This deal follows a May acquisition of Airterra a delivery start up.
During Milan Fashion Week 2021, Gucci launched it’s Vault Vintage e-commerce web site offering refurbished Gucci products, as well as capsule collections by new young designers. Gucci Vault, which is a continuation between the brand and independent young designers from 2020’s GucciFest. The festival in 2020 (which replaced it’s runway shows) resulted in a 25% increase in Gucci’s revenue’s in the first quarter of 2021.
“The Gucci Vault expands on the Gucci universe in an online space and gives the stage to restored vintage pieces and exclusive items from almost all of the 15 designers originally featured in the festival. The lineup consists of Ahluwalia, Shanel Campbell, Stefan Cooke, Cormio, Charles de Vilmorin, JordanLuca, Yueqi Qi, Rave Review, Gui Rosa, Bianca Saunders, CFDA/Vogue Fashion Fund finalist Collina Strada, Boramy Viguier and LVMH prize finalist Rui Zhou.” The Gucci Vault is “speaking to the belief that past, present and future can co-exist through the power of the imagination.” The brand said in a statement.
There next show will be in Los Angeles on Nov 2nd, which will run parallel with the 10th LACMA Art & Film Gala that Gucci is also sponsoring.
This continuing trend of “Big Brand” conglomerates is breathing new life (and revenue) to the large fashion brands after the post pandemic slump.
The Luxury fashion retailer FarFetch is taking on the huge sustainability issues the industry faces, by launching a pre orders service that allows customers to buy from designers before they are on the shelves. The pre order initiative will launch with brands like: Oscar del la Renta, Off-White, Balenciaga and Khaite, in an effort to reduce fashion waste.
The first pre order’s clothes are already made, however the idea is (for the long term) is to offer pre-production so that brands may make only enough clothes that is desired, and by effect reduce waste.
A total of ten brands have joined Faefetch in this sustainability push, and more brands will be on board monthly as for many brands this will be their first time jumping in the pre-order arena.
In an effort to capture a more younger and diverse set of customers, LVMH has given the rapidly rising fashion designer Virgil Abloh a huge role in creating new business segments and fashion brands for major expansion!
This exciting agreement has LVMH buying a majority stake (60%) of the street wear brand Off White for a price that was not disclosed. Abloh will also continue to serve as creative director of Louis Vuitton Menswear line.
This partnership is herald’s a new generation of “Luxury Masterminds” as the luxury industry embraces more and more black artists and designers.
The fast fashion world…..or should I say, Ultra Fast Fashion has just been taken over by SHEIN! While not a household name SHEIN (which is rapidly about to change) has taken the lead of the online (Ultra!) Fast Fashion scene.
Solely focused on targeting GEN Z with laser beam accuracy, SHEIN has become the most installed e-commerce shopping app in America! The company is based in Nanjing and was founded in 2008, attracting Gen Z shoppers with TixToK and Instagram influencers along with almost endless discount codes to become a $15 Billion Fast Fashion Empire, uploading hundreds of new products each week.
The publicity shy ultra fast fashion king has made it clear that it’s ready to take on Main Street after a very suprisingly potential bidder for failing U.K. fashion company Arcadia (which failed), and is known to buy out it’s competition. SHEIN has taken the lead in the global fast fashion arena and does not seem to be slowing down, despite also being routinely criticized for copying designs from indie designers.
On March 25th 2021 Gap Inc. announced that it will be selling it’s children wear brand Janie and Jack which includes about 115 brick and mortar stores along with it’s e-commerce site. The luxury children’s brand was purchased by Gap for $35 million in 2019 from Gymboree Group.
The “brand investment platform” Go Global Retail is set acquire Janie & Jack, but the price of the purchase has yet to be announced with a closing date of April 2nd 2021.
Gap Inc. announced in late February that they will invest $140 million on a distribution center in Longview Texas, with construction to start in April 2021. The 850,000 square foot facility will create a projected 500 full time jobs in Longview by 2023, and is expected to increase to 1,000 jobs over five years with plan to double online sales within two years.
The 850,00 square foot facility will be capable to process 1 million packages a day will start processing orders for Old Navy at first, and then will gradually service the other segments of the business, such as Banana Republic and Gap online orders as they close 30% of the Gap and Banana Republic brick & mortar stores.
Chief Operating Officer, Shawn Currin of Gap Inc said: “As we look to deliver on our three-year strategy and double our online business, we needed to expand our fulfillment network to provide a great experience for our customers today and ensure we have the ability to grow in the future.”
The Black lives Matter movement has spurred activists to call on major retailers to support blank owned business. Designer Aurora James from Brother Vellies created the 15 Percent Pledge in June 2020. The pledge calls for retailers to commit 15% of their buying to Black owned businesses. citing: “We represent 15% of the population and we need to represent 15% of your shelf space.”
Retailer’s such as Rent The Runway and Sephora have taken the pledge. time will tell how many other major retailers will sign on. Nordstrom plans to sell roughly $5 million of Black/Latino business brands products online.
Famed fashion designer Alexander Wang has been hit with charges of sexual assault from a slew of male and trans models, claiming that the fashion designer has grouped/raped them (or tried to), after the designer insisted that they drink bottles of water (Molly Water) while on route to after parties, without their knowledge or consent.
Talk of this type of behavior by Alexander Wang goes back as far as 2016, with musician Florence Welch stating that his favorite “party trick” was to offer someone a glass of water, which was really straight vodka. Another musician Azealia Banks posted “anonymous accounts” of Wang groping trans women on Instagram in 2019. Most recently on December 28th 2020 @ShitModelMgmt(a modeling watchdog account) posted on it’s site that Wang was a “alleged sexual predator” after posting several anonymous DM messages which detailed accounts of Wang raping/groping and or drugging them. The most recent allegations are drawing more attention from the fashion industry after recent coverage of this story from The New York Times, Business of Fashion and the Guardian.
Alexander Wang has denied all accusations, and released a statement to Vouge Magazine: “Firstly, I’d like to take the opportunity to connect directly with the people who have helped me grow this brand into what it is today and address the recent false, fabricated, and mostly anonymous accusations against me. While I have always been active in my social life, frequently attending various industry gatherings, parties, and concerts where drugs and alcohol were present—contrary to what has been said, I have never taken advantage of others in a sexual manner or forced anything on anyone without consent. I also have never abused my status or fame for my own benefit. These baseless allegations were started on social media by sites which repeatedly disregarded the value and importance of evidence or fact-checking. It’s my priority to prove these accusations are untrue and are fueled by solely opportunistic motives. It is important for people to speak up and be heard, but there is a need to ensure accusations are credible, so that we don’t harm these important causes. Our team is doing everything in its power to investigate these claims and we promise to remain honest and transparent throughout that process. We are fortunate to have received an overwhelming amount of support over the last few days and are thankful to our staff, clients, and industry peers for standing by our side at this time.” The people that are accusing Wang are preparing for possible legal action against him. We will keep you updated as this story unfolds.