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FASHION WEEK SCANDAL: Ron Smith pulled the plug on a group fashion show he had organized for Sunday at the Hudson, disappointing participants who got word via an email Saturday that read, “Show is not happening. Best, Ron.” A spokeswoman for the Hudson confirmed that Smith cancelled at the last minute, but declined to disclose any more details. The five participants are out over $5,000 each. According to one, Vengsarkar Budhu, an F.I.T. graduate who was awarded “Designer of the Year,”the Reem Acra Critics’ Award, as well as Saks Fifth Avenue women’s wear award upon his graduation last year, he gave Smith $5,500 to participate in the show, and had spent almost $10,000 in total on silks, pleating, beads and fabrics. He said he received Smith’s e-mail on Saturday that the show was cancelled, and has been unable to get in touch with him. He said he got the feeling something was up when he went for the fittings, and Smith didn’t show up. “The hotel said he booked the space and never paid for it,” said Budhu. A spokeswoman for the Hudson didn’t return a call seeking comment. “I spent the last three months making these clothes,” said Budhu, who works part-time at F.I.T. “I don’t have a company, but if I got an order, I would make it.”

FIREWALL: Phillip Lim’s show Sunday evening, held in the New York Public Library’s Celeste Bartos Forum, drew unexpected drama when scores of editors were denied entry by fire marshals claiming the venue had reached its capacity (apparently models and makeup artists hadn’t been taken into account when drawing up numbers). But for those who made it inside, the scene was relatively calm. Diane Kruger was attending her first show of the week (though she’s been out practically every night).“I’ve never done New York Fashion Week before,” claimed the actress, in town doing publicity for her upcoming “National Treasure: Book of Secrets.” She’ll next be filming “Mr. Nobody” opposite Jared Leto and Sarah Polley. And she’s certainly not missing her catwalk days. “I never really liked modeling,” she admitted.Nearby, former “Buffy” and “American Pie” thespian Alyson Hannigan was enjoying her new graphic bang ‘do. Though her inspiration for the chop wasn’t necessarily fashion-related. “I’m trying to grow out my eyebrows. They’re too thin and arched, so I figured I’d get bangs,” she explained. “I’m hoping by the time the brows grow out, the bangs will have, too.” And Lim had a designer contingent as well, as Richard Chai, fresh off his own show a few hours before, came out to support his friend. “He came to my show, so I’m at his,” shrugged Chai, who was just happy his own moment was over. “I’m so exhausted——I think I’m gonna go hide in a corner.”

AIRBORNE: Talk about worst nightmares. As Alice Temperley told the crew in the Moet & Chandon lounge in the Bryant Park Tents, two weeks before her presentation on Saturday, $25,000 worth of Christian Louboutin shoes intended for her show were stolen en route to New York from the Italian workshop. Every pair had to be remade in 14 days. Then, the day before the presentation, her entire collection remained stuck in customs after paperwork was filled out incorrectly. Nevertheless, the show went off without a hitch.

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