DESIGNER HOLDINGS, DKNY DISPUTE STILL IN A STALEMATE
NEW YORK — Disagreements in the jeanswear deal between DKNY and Designer Holdings were not resolved as of Monday, despite negotiations that continued through the weekend after Friday’s deadline.
Although both businesses were closed Monday for the Presidents’ Day holiday, a spokeswoman for Donna Karan said Monday that the talks were still in progress, and that there had been no developments.
On Friday, Steven Ruzow, president and chief operating officer of Donna Karan, declined to elaborate on the subject of the talks or say when the deal might be concluded.
Arnold Simon, chief executive officer of DH, did not return calls for comment Friday.
The deal, which was signed Sept. 30, is being held up as the two sides renegotiate their terms. Deliveries on the DKNY jeanswear had been scheduled to start for the crucial fall back-to-school season, with retailers holding retail space and promotion dollars for the launch.
Disagreements reportedly center on the extent of the deal and whether DH will be manufacturing the entire DKNY line or just the jeanswear components. In the meantime, delayed production and fabric delivery schedules are costing DH millions of dollars.