The beleaguered Warnaco Group surprised observers recently when it said it would emerge from bankruptcy protection in early 2003 as a standalone company, with much of its stable of brands remaining.
Upon exiting bankruptcy, Warnaco will hold $265 million in debt, which includes senior subordinated notes, plus its borrowings under an exit facility. At its peak, Warnaco’s capitalization in June 1998 was $2.8 billion. The company’s bread-and-butter brands include Warner’s, Olga, Bodyslimmers, Lejaby, and of course, Calvin Klein Underwear for men and women, which it owns outright, and a long-term license for CK Jeanswear.
There are several big questions for 2003. Following Phillips-Van Heusen Corp.’s acquisition of Calvin Klein Inc. this month for $700 million, the relationship with Warnaco will likely be tested.
PVH told WWD it had a "full plate" and was currently not looking to buy the Calvin Klein businesses at Warnaco, and a deal with VF Corp. was thwarted by Klein and the Warnaco board voting it down in December.
Warnaco acquired Klein’s men’s underwear business and trademarks for men’s accessories worldwide from the designer’s company in March 1994 in a deal worth $64 million, plus ongoing fees. As part of the deal, Warnaco took over the Calvin Klein women’s underwear business in 1995.
In 1997, Warnaco acquired Designer Holdings Inc., maker of Calvin Klein Jeanswear, in a deal worth about $354 million. The pact gave Warnaco one-third of the $2.5 billion Calvin Klein empire.
Warnaco’s board will soon need to name a new chief executive officer. Tony Alvarez, the ceo hired in November 2001 to lead the company through its bankruptcy, is expected to return to the turnaround firm Alvarez & Marshal after a completed reorganization.
Industry observers said it most likely will come down to two candidates: John Kourakos, president of the Sportswear Group, which includes the Chaps by Ralph Lauren men’s wear label and the Calvin Klein Underwear and Jeanswear businesses, and Tom Wyatt, president of the Warnaco Intimate Apparel Group.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
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24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews