IN BRIEF
GUCCI BUYS DOWN UNDER: In its ongoing effort to tighten control over production and distribution, Gucci Group has acquired full control of its Australian subsidiary, Gucci Australia Pty Ltd.
The firm said in a statement Tuesday that it has purchased the 35 percent stake in the subsidiary held by its joint-venture partner, F.J. Benjamin Holdings Ltd., adding that Gucci Australia would now operate as a fully owned subsidiary of the Gucci division.
“Taking full control of the Australian joint venture reaffirms our commitment to our brands and to the Australian market, where we see significant potential for further development,” said Domenico De Sole, chairman and chief executive officer of Gucci. “Gucci already has an established position in Sydney and Melbourne, and we plan to open a new store in Queensland’s Gold Coast by the end of the year.”
ALAIA ALERT: On Wednesday, retailers in Paris began placing orders on Azzedine Alaia’s fall 2001 collection, the first he’s shown since he formed his joint venture with Prada Group, which recently exercised its option to buy 100 percent of Alaia’s house. Press showings are being contemplated for couture week, which starts Saturday and runs through July 11 in Paris.
I2’s BLUES; IVILLAGE SUED: Embattled business-to-business Internet software supplier i2 Technologies warned Tuesday that it will post a second-quarter pro forma loss of about 12 cents a share, before a special charge for bad debt, on sales of roughly $240 million — or twice the loss analysts anticipated, based on sales they’d projected to hit $282 million. In holiday-shortened Nasdaq trading Tuesday, i2 shares added 34 cents to close at $18.57.
Separately, Little Rock, Ark.-based law firm Cauley Geller Bowman & Coates said Tuesday a class action has been filed in the U.S. District Court for the Southern District of New York, alleging iVillage and the underwriters of its March 1999 IPO solicited and received “excessive and undisclosed” commissions from certain investors who, in turn, were given part of the restricted portion of iVillage shares in the offering. The suit further charges iVillage; Goldman Sachs; Credit Suisse First Boston; BancBostonRobertson Stephens; Lehman Bros., and iVillage founders Candice Carpenter and Nancy Evans, among others, with allowing certain parties to buy iVillage shares in the IPO, in exchange for a promise they would buy additional shares in the aftermarket at pre-set prices. IVillage, which went public at $24 a share, closed at $1.46, off 3 cents, in Nasdaq trading Tuesday.
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WAL-MART TAPS HYDE: Wal-Mart Stores Inc. named Thomas D. Hyde, formerly senior vice president and general counsel of Raytheon Co., as executive vice president and senior general counsel. Hyde will join Wal-Mart in mid-July and report to Lee Scott, president and chief executive officer.
Hyde will be responsible for overseeing the legal activities of Wal-Mart’s worldwide operations. Robert K. Rhoads continues as senior vice president, general counsel and secretary, but will report to Hyde.
“Tom Hyde is a talented executive who will add depth and a breadth of international experience to our senior management team,” Scott said in a statement. “As our senior general counsel, Tom will oversee a challenging area of our business that is taking on an increasingly prominent role for growing multinational companies such as Wal-Mart. However, Tom also is a generalist and we expect that he will add value throughout our organization.”