IN THE BOARDROOM: Phillips-Van Heusen Corp. said Friday that in connection with its acquisition of Calvin Klein Inc., David Landau, Henry Nasella and Christian Nather have been elected to its board of directors. All three new directors are partners in Apax Partners, which made a $250 million equity investment and provided a loan of up to $125 million to PVH in connection with the acquisition. In a separate matter, PVH said Maria Elena Lagomasino resigned as a director, due to other business commitments and unrelated to the acquisition or the election of the new directors.
This story first appeared in the February 18, 2003 issue of WWD. Subscribe Today.
REALTY REALITY: Kmart Corp. on Friday reached an agreement with Kimco Realty Corp. for the joint marketing of approximately 317 U.S. and Puerto Rican store locations and related properties that the bankrupt retailer is in the process of closing. With this agreement, Kimco or its affiliates will help Kmart find retailers, landlords and other parties interested in obtaining Kmart properties. Kimco may also redevelop or otherwise improve the locations in order to increase their value. The properties to be marketed range in size from about 50,000 square feet to more than 190,000 square feet and are situated in freestanding, strip and mall locations in 44 states and Puerto Rico. Additionally, the group includes 57 Kmart SuperCenters. Troy, Mich.-based Kmart received court approval to close these stores on Jan. 29.
A WOMAN’S PLACE IS…: Federated Department Stores ranked 11th in the list of the 30 top companies for executive women, compiled by the National Association for Female Executives. Last year, Federated ranked 23. Hundreds of companies get evaluated, and Federated beat all of the other retailers on the list. According to NAFE, the competition intensified this year by counting women in line positions — the operating jobs with profit-and-loss responsibility. At Federated, more than 60 percent of management positions are filled by women — and in senior management ranks, more than 50 percent, many in P&L roles. To be on NAFE’s “Top 30” list, companies must have at least two women on the board, a steadily increasing number of women in senior management, programs that groom women for upper management positions, maternity/paternity leave and flextime. NAFE, which was founded in 1977, is the largest women’s professional and business association in the country and publishes Executive Female.
CONTINENTAL ACQUIRES COTTON: Cotton Ginny, a retailer of casual clothes, has been acquired by Continental Saxon Group, a real estate holding company. Both firms are based in Toronto. The clothier, with 200 stores across Canada under the Cotton Ginny banner and 90 under the Tabi International name, was operating under court protection from creditors, as reported. It was planning to shut more than 100 of its unprofitable outlets, keep the Tabi outlets and sell the rest. Continental will continue to operate 110 of the more profitable Cotton Ginny stores and may buy up to 60 of the outlets that are set to close. Terms of the agreement were not disclosed, but sources said it amounted to about $4.5 million, converted from Canadian dollars at current exchange rates. Continental has a reputation of being a real estate turnaround specialist, buying distressed properties and building them back up. It has a portfolio of shopping malls, residential and commercial properties. Cotton Ginny is its first foray into retail. The company said it was attracted to Cotton Ginny because of its cash flow and its brand name. It said it doesn’t plan to turn around the retailer and sell it. Cotton Ginny had annual sales of about $131 million, but owed creditors close to $31 million, including $10 million to suppliers. Women’s apparel manufacturer and retailer Nygård had also made a bid for Cotton Ginny. But the bid also included the Tabi stores, which are not for sale and will continue to be operated by Cotton Ginny’s acting president, Larry Gatien.