Fashion's Night Out: Dealmaker style

Fashion's Night Out, Thursday's global marketing event, was conceived to resuscitate the ailing fashion and beauty retail industry. Stores will be open late and will be hosting all kinds of entertainment including music and giveaways -- all designed to loosen wallets and boost bottom lines.

More than 700 retailers and designers in New York City have signed up to participate, including several that have been active in the deal space, whether in auctions, acquisitions or bankruptcies. Here are a few that caught our eye. (Subscribers to The Deal Pipeline can click on the links below for additional details):

Talbots Inc.

Talbots Inc. on July 2 announced that it had completed the sale of its J. Jill brand to Jill Acquisition LLC, an affiliate of San Francisco private equity firm Golden Gate Capital, for $75 million. Talbots, which bought J. Jill in 2006 for $517 million, announced plans to divest the unit in November as part of a plan to focus on its core business.

Barneys New York Inc.

Barneys New York Inc. may file for bankruptcy or undergo a restructuring process where its owner, Dubai's Istithmar World Capital, could lose control of the high-end retailer, according to reports. Hedge fund Perry Capital LLC has reportedly been approached by Holt Renfrew, the Toronto-based department store chain, about a joint offer for control of Barneys, which continues to review options, the report said.

Fred Leighton Holding Inc.

New York-based Fred Leighton Holding Inc., which specializes in antique jewelry, has been operating under Chapter 11 bankruptcy protection since April 2008, and its coffers are near empty. The company is also embroiled in a legal battle against Merrill Lynch & Co., a creditor.

Escada AG

Escada AG announced Aug. 13 that it had filed for insolvency after it failed to restructure its €200 million ($283 million) in debt. Escada needed 80% of its bondholders to agree to swap their holdings for new securities, but only 46% did so. On Aug. 18, it was reported that a group of investors, including Nickolaus Becker, a former chairman of media company EM.TV AG, is interested in bankrupt Escada's brand, licensing rights, inventory and the store network.

Tiffany & Co.

Tiffany & Co. agreed in May to acquire upscale handbag maker Lambertson Truex LLC for an undisclosed sum.
For more on troubles in the retail sector, see our Retail and Bankruptcy Dealwatch here. Also, go here for a full list of participating retailers and designers in Fashion's Night Out. - Sara Behunek

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Comments:
Well Fashionistas,this is a show of force. Toronto's fahion world becomes always exciting because of what's happening in the fashion world day-in and day-out.