SHAKE-UP AT MARTHA: The Martha Stewart Living Omnimedia Board underwent a shake-up Tuesday, when current director Thomas C. Siekman replaced Jeffrey W. Ubben as chairman of the board. Also, former Sears Roebuck & Co. chairman and chief executive officer Arthur C. Martinez stepped down from the board and his position as lead director. “I have been pleased to contribute to MSO during a period of uncertainty, and I wish the company every success in its future endeavors,” Martinez said in a statement. Meanwhile, former Steve Madden Ltd. director and chairman of the board Charles A. Koppelman, currently a chairman and ceo of CAK Entertainment Co., was appointed as a director of the board. “We welcome Charles Koppelman, whose expertise in marketing and branding will be a great benefit to us,” Siekman said in a statement.
WEATHERVANE LIVES ON: Teen-apparel retailer Weathervane has been sold for $2.5 million to Fair Vane, a Canadian retailer. Fair Vane purchased the non-inventory assets during a bankruptcy court auction in Delaware. Weathervane filed for Chapter 11 bankruptcy court protection on June 2. It was the second filing for the company in five years. While others, including landlords, made bids at the auction, the aggregate of the bids failed to meet the $3.2 million minimum overbid, according to counsel at Kronish Lieb Weiner and Hellman, which represents the retailer’s committee of unsecured creditors. Under the plan, the stores will go dark for several months while the new owner completes a reinventory of the chain. Unsecured creditors are owed between $5 million and $10 million. The purchase includes 65 store locations and is subject to Delaware bankruptcy court approval.
MOVIE STAR CREDITS: Looking to bolster its working capital needs, Movie Star Inc. said it secured a $17.5 million credit facility with HSBC International. On Monday, the firm said it secured the credit at an interest rate that will be at prime less three-quarters of a percent. The company produces and sells ladies’ apparel, such as sleepwear, robes, leisurewear and daywear. “This line of credit, along with anticipated internally generated funds, will be sufficient to cover our working capital requirements,” said Movie Star’s chief financial officer Thomas Rende in a statement.