Daffy’s Gets Ready to Shut its Doors
Daffy’s, the cash-strapped off-price chain, has decided to shutter its doors. Going-out-of-business sales will be conducted by a liquidation firm. Sources said over the weekend that the retailer, which hired a liquidator earlier in the week, will begin GOB sales shortly. Industry sources familiar with the plan said most stores are set to go dark by the end of October. A few will close as early as the end of September. An employee at the store in New York City’s SoHo neighborhood said the stores were notified of the decision on Thursday.
Daffy’s has been plagued by financial woes since the spring due to tanking sales, but it wasn’t until vendors were told in June that the chain was unable to pay May invoices that the cash crunch came to light. Like Syms and Filene’s Basement, both of which have gone out of business, Daffy’s succumbed to competition from business models that provide consumers with better deals and merchandise, instead of primarily offerings that were only one season old.
Lively and Lagerfeld Fight?
Reports have swirled of a rift between Chanel and Blake Lively, who’s an ambassador for the fashion house and appeared in ads for its Mademoiselle handbag last year. She skipped Chanel’s couture show in Paris last month and then announced a deal to be a spokeswoman for Gucci fragrance Première, which will go on sale in September. She then wore a gorgeous yellow Gucci gown to the New York premiere of her film “Savages.” This all led some to believe there was friction with Chanel. But sources say all is fine.
“Blake is still an ambassador to Chanel and regularly keeps in touch with designer Karl Lagerfeld. She was invited to the couture show but couldn’t make it because she was promoting ‘Savages.’ She still wears Chanel whenever she can.” Lively, who famously announces every chance she gets that doesn’t have a stylist, told others not to worry that she is not constantly donning Chanel couture. “I had other opportunities, and I would say, ‘Thank you so much, but I am holding out for Chanel . . . That’s who I want to be the face of.’ And people would say, ‘Well, that’s unrealistic. They only hire Europeans,’ and I said, ‘Well, how great. I’ll be the first then.’ ”
No Martha Stewart at J.C. Penney
The preliminary injunction was a win for Macy’s which has sued Martha Stewart Living claiming it has exclusive rights to sell certain Martha Stewart products including soft furnishings, dinnerware and cookware. In issuing the preliminary injunction, New York State Supreme Court Justice Jeffrey Oing said Macy’s had shown likelihood of ultimate success in its lawsuit. “The scale tilts in favor of Macy’s,” the judge said.
J.C. Penney in December announced plans to open shops within its stores to sell Martha Stewart-branded goods, starting in 2013. Macy’s sued Martha Stewart Living, accusing it of breach of contract by entering into the agreement with J.C. Penney. Macy’s claims Martha Stewart Living granted it the exclusive right to manufacture and sell the Martha Stewart-branded goods in Macy’s lines under a 2006 agreement that, with a renewal, runs until 2018.
Justice Oing said putting Martha Stewart products at J.C. Penney stores would deprive Macy’s of its competitive edge. He also noted that Macy’s had helped resurrect Martha Stewart Living’s image after its eponymous founder was found guilty in 2004 of lying about a stock sale. “Macy’s took on the risk with MSLO after Martha Stewart left prison,” he said.
– Taneisha Jordan
Sources: WWD; Page Six; Reuters