Daily LInks
1. Valentino’s Pierpaolo Piccioli Talks Couture, Campaigns, and What’s Next: “In the past two decades, many things have been evolving in a way which I didn’t really like: having the product at the center of fashion, and the designer more marketing-oriented rather than fashion-oriented.” – Read More on Vogue
2. The Victoria’s Secret Contract That Anticipated a Pandemic: In the acquisition agreement, the lawyers carved out specific exceptions in connection with the act-of-God clause, including a pandemic. That meant that even if a pandemic struck, Sycamore would be legally obligated to complete the deal. “I’ve never seen a reference to a pandemic in that context.” – Read More on the New York Times
3. Luxury market will take years to recover from COVID-19: Affluents’ feelings of financial anxiety persisted long after the recession’s recovery. Since the global financial ramifications of coronavirus have yet to be realized, it is expected to be worse than that experienced in the 2008-09 financial meltdown, “anxiety and a healthy paranoia are likely to linger – possibly for a long time.” – Read More on American Marketer
4. This Is How The Gap Dies: Late last week, Gap Inc. warned that it had blown through about half that cash, thanks to its largely idle store fleet, and had thus raised $2.25 billion in secured (junk-rated) debt and other financial maneuvers. Nobody is predicting that The Gap, let alone Gap Inc., will disappear tomorrow. But suddenly that eventual outcome seems more plausible than ever. – Read More on Makerer (via Redef)
5. The Devil’s in the Detail for Junk Debt Investors Facing Coronavirus Defaults: While bankers selling these deals often say the terms are unlikely to actually be used, there is precedent.Take U.S. retailer J Crew. In 2017, it moved the intellectual property of its brand into a new company, stripping investors who had lent against the asset of their collateral. It was so infamous that terms added to subsequent financing deals to avoid a repeat are now known as the “J Crew Blocker.” – Read More on Reuters
6. Fashion industry anticipates return to work in May: Fashion retailers in the West are desperate to reopen for business, but anticipate a step-by-step process, with restrictions varying from country to country. – Read More on Vogue Biz
