• REVLON EXTENSION: The term of Revlon Inc.’s $107 million senior subordinated term from Ronald Perelman’s MacAndrews & Forbes Holdings Inc., Revlon’s majority owner, has been extended one year, until Aug. 1, 2010. The principal would come due immediately upon consummation of Revlon’s previously announced equity rights offering, which would raise the $107 million by allowing stockholders to purchase additional shares of Class A common stock. Revlon said it is “monitoring the financial markets closely to assess the appropriate timing” for such an offer. The loan, with Revlon’s Revlon Consumer Products Corp. subsidiary, was originally for $170 million, but Revlon paid down $63 million with the proceeds from the July sale of its noncore Brazilian brands, generating $7 million in annual interest savings, according to the firm. The loan can be prepaid without penalty and bears annual interest of 11 percent payable quarterly. It is unsecured and subordinate to RCPC’s senior debt.
This story first appeared in the November 17, 2008 issue of WWD. Subscribe Today.
•MOROCCO BOUND: Galeries Lafayette said it would expand into Morocco with Groupe Aksal, starting with a 140,000-square-foot location in the Morocco‘mall in Casablanca, which is slated to open in 2010. Aksal, billing the mall as the largest retail development on the continent (excepting South Africa), held a news conference Saturday in Marrakech to announce its franchise agreement with the French department store operator. The deal marks a homecoming for Galeries, which had been present in Morocco in the Twenties with its Monoprix and Galeries Lafayette banners. Aksal operates Zara, Massimo Dutti, La Senza and other retail banners.
• PARAMOUNT SALES CHIEF: Michael Adler has been named president of sales for Paramount Apparel Ltd.’s children’s division, in charge of the Big Chill outerwear brand. He succeeds Michael Hollander, who left the company. Adler reports to Charles Bronfeld, president of the 50-year-old firm. Previously, Adler was president of sales at Daron Fashions Group, a children’s outerwear manufacturer. He also worked at the Zero Exposure children’s division of Fleet Street Ltd., and was a principal at Debutogs, where he launched the Red Pepper children’s activewear brand and the Michael Lewis children’s outerwear label.
• SULLIVAN’S SHARES: A margin call reduced Trudy Sullivan’s stake in The Talbots Inc., which she leads as president and chief executive officer. Sullivan had pledged 51,005 shares of the company to collateralize a margin loan with a financial institution. “Due to current volatile conditions in the U.S. capital markets, these pledged shares were involuntarily sold at the direction of the lending institution to satisfy minimum margin requirements under the credit line,” the company said in a filing to the Securities and Exchange Commission Friday. The ceo still holds 336,500 restricted shares of the company, 108,333 vested stock options and 292,767 unvested stock options. None of those holdings are subject to a similar pledge.
• TEAM LEIFSDOTTIR: Urban Outfitters Inc. has named Clare Schultheis as managing director of Leifsdottir, the wholesale brand launched by its Anthropologie unit last fall. Schultheis will be responsible for the expansion of Leifsdottir in the U.S. and abroad. Schultheis had been executive vice president of accessories and footwear at Stuart Weitzman since 2006. Before that, she was senior vice president of Cole Haan’s women’s division. Schultheis will report to Wendy Wurtzburger, chief merchandising officer of Anthropologie. Leifsdottir’s creative direction will continue to be led by Anthropologie executive design director Johanna Uurasjarvi. Leifsdottir’s wholesale prices range from $60 to $250 and higher for special pieces. The collection is sold at Bergdorf Goodman, Bloomingdale’s, Nordstrom and specialty stores. Wurtzburger said freestanding Leifsdottir stores “is a possibility at some point.”
• SADOVE TO SPEAK AT LIM GRADUATION: Stephen I. Sadove, chairman and chief executive officer of Saks Inc., will deliver the keynote address at Laboratory Institute of Merchandising, The College for the Business of Fashion’s 70th annual commencement. Sadove, who will be presented with LIM’s Distinguished Achievement Award, is expected to speak to more than 200 graduates — LIM’s largest graduating class ever — at the May 22 ceremony at Jazz at Lincoln Center in Manhattan. John Varvatos was LIM’s 2008 commencement speaker.
• QUIKSILVER COMPLETES ROSSIGNOL SALE: Quiksilver Inc. has closed the sale of its Rossignol Group ski unit to Chartreuse & Mont Blanc for 40 million euros, or $50.8 million at current exchange. The deal, completed Wednesday, consisted of cash of 30 million euros, or $38.1 million, and a seller’s note of 10 million euros, or $12.7 million. When the parties first announced the deal in August, Quiksilver expected to receive 100 million euros, or $126.9 million at current exchange, including 75 million euros, or $95.2 million, in cash and a 25 million euro, or $31.7 million, seller’s note. The company said it lowered the price because of the global credit crunch and that it would use net proceeds from the sale to reduce indebtedness. It cited a desire to limit its exposure in the winter sports equipment business when it put the division on the market in January.