Crains New York - May 21, 2012 - (Page 2)

COMMENTARY I A plague of curators f the phrase “jump the shark” hasn’t already jumped the shark, then I submit to you that the verb “to curate” has jumped the shark. A few years back, I first noticed its misuse after a precious fellow who hopped between gigs in media, art and advertising took over a magazine I’d previously run as its plain-vanilla editor and proclaimed himself its curator.That’s when I started stacked on the verbs in a story on “attempts to massage, curate, coax and moderate” discussion on the Internet. That was enough to send me to the dictionary, starting with my beloved leather-bound Merriam-Webster’s Collegiate, which gives the first definition of “curate”(a noun) as a clergyman in charge of a parish; the second (a verb), to work as a museum curator—“one who has the care and superintendence of something,” particularly an exhibition space like a museum or zoo. Though I expected it would be stricter, my Oxford English Dictionary turned out to be more expansive. Its first definition of “curator” is one “entrusted with the cure of souls,” but in its third meaning of the word,it allows it to mean generally being charged with overseeing something. So let’s be generous with those who now curate and grant them their fashionable pretension. But still, you have to wonder why the term suddenly has so much currency. Most likely, it’s the fact that while traditional media downsizes,fashion and retail sputter, and the Internet simply sprawls, immune to curation, the art world, from which the term’s modern meaning truly springs, has a supernatural spring in its step,as evidenced by this month’s mind-boggling auction prices. Given my druthers, I’d be there, too. So call me the curator rather than the author of this column. If the word not only fits but also promises to fill my pockets, I’ll just have to learn to grin and wear it. Spate of City Council bills worries business leaders Unions, activists push agenda BY SHANE DIXON KAVANAUGH The City Council in recent weeks has unleashed a flurry of legislation that would increase regulation and costs across industries, prompting fears among business groups that there’s far more on the way. Lawmakers have passed “prevailing wage” and “living wage” bills to boost pay for workers at some taxpayer-subsidized developments and placed the city’s 200 car-wash operators in the regulatory crosshairs. They approved a measure last week that requires banks to disclose detailed information on their lending operations throughout the city. Another new bill would ban employers from checking a job applicant’s credit history. “Quite frankly, it’s disturbing,” said Robert Bookman, an attorney who represents the New York Nightlife Association. “And we’re only getting a taste of what may come.” The spate of legislation has spooked business leaders and renewed concerns that the influence of labor unions and progressive groups on the council’s rank and file could undermine growth. New talk of a mandatory paid-sick-leave bill is also gaining traction. “How much more can we add to the backs of our employers?” said Nancy Ploeger, president of the Manhattan Chamber of Commerce, referring to the measure that would require businesses with 20 or more employees to provide nine paid sick days per year and businesses with five to 19 workers to offer five days. “It’s the antithesis of job creation and job sustainability.” Council Speaker Christine Quinn, a Democrat expected to run for mayor next year, has declined repeatedly to bring that UNDER PRESSURE: Council Speaker Christine Quinn. to realize that curation, like a pernicious germ, had begun to infect the fields that bend to the whims of fashion. Retailer Stefani Greenfield, founder of the boutique chain Scoop, was hired late last year to “curate” the Jones Group’s clothing lines, for example. That job involves overseeing a collection dubbed Curations With Stefani Greenfield. They used to call what Greenfield does merchandising. Too technical and down-market, I suppose. In the week I decided to write this column, the word seemed even more ubiquitous. Last Tuesday, Page Six reported that a consultant had been hired by Phillips de Pury & Co. to “curate events for the auction house.” The same day, WWD’s front page and the Post’s Keith Kelly both wrote about the sale of a “curated blog portal” in Finland. The New York Times arts desk quoted the “curator” of a dance festival.The day before, a guest on an NPR show spoke of “curating” a conversation about obesity among black women, and the Times said Jay-Z would curate and headline a music festival. I also found a stock-image company’s announcement that it would “curate a global marketplace for royalty-free imagery”; a Pittsburgh dance festival director’s claim that invited choreographers had created “moves … so new that it was impossible to curate” them; and Target’s news that it has “struck deals with five independent retailers from San Francisco to Boston to curate collections of new products.” And The Washington Post MICHAEL GROSS EDITORIAL Council, and its leadership, must stop this anti-biz blitz. P. 10 bill to a vote, though it already has 35 co-sponsors in the council—enough to override a mayoral veto. But Ms. Quinn’s recent pivots to the left underscore the increasing pressure to satisfy unions and other liberal organizations that will be instrumental in the Democratic primary next year. The prevailing-wage bill, which jacks up pay for service workers in buildings that receive at least $1 million in city subsidies, was championed by Service Employees International Union Local 32BJ, which represents janitors, security guards and cleaning crews. The Retail, Wholesale and Department Store Union, meanwhile, organized the coalition behind the living-wage bill, which will require businesses taking at least $1 See COUNCIL on Page 29 newscom Liz wears out welcome New Fifth & Pacific dumps the dowdy Claiborne for hipper turnaround makeover BY ADRIANNE PASQUARELLI Cue the lights and music. The show has begun for Fifth & Pacific Cos. Last week,Liz Claiborne Inc.officially transformed itself into the new company, after shedding the dowdy womenswear brand that gave it life 36 years ago. “After five years of turning things around, we are now in a race, and it’s day one,” said William McComb, chief executive of F&P. “I’m chomping at the bit to get moving.” It’s no surprise that Mr. McComb, who has been mired in restructuring efforts since he came on board the struggling fashion conglomerate in 2006—the last year the company turned a profit—is eager to move forward. The new Fifth & Pacific name is a nod to its bicoastal presence and a symbol of its new focus on three key brands: Kate Spade, Lucky Brand Jeans and Juicy Couture. Mr. McComb is already in the midst of turnarounds for Lucky and Juicy,and has implemented a rapid expansion plan for the growing Kate Spade and its menswear label, Jack Spade. He’s also in the process of launching new product divisions, such as childrenswear at Lucky. Of course, F&P has more stitching to do. For starters, it’s still losing money. The company lost $60.6 million for the quarter ended March 31, compared with $96.3 million in the year-earlier period, on revenue that was down 4%, to $317.1 million. The company expects a profit, on an EBITDA basis at least, at the end of the year. The Kate Spade division, though the smallest by sales, is clearly the fastest growing, with net sales for the quarter up a whopping 46%, to $86.4 million, from the year-earlier period. And Juicy Couture, the largest, lags by comparison: Sales slipped 4%, to $110.2 million. When Mr. McComb joined the old Liz Claiborne, he inherited more than Kate Spade and Juicy Couture— the company owned about 40 brands, many of which had lost their luster, and their department store space was rapidly shrinking. He immediately began chopping fading womenswear labels like Dana Buchman and Ellen Tracy and focusing on the hipper Kate, Lucky and Juicy brands as his primary gems. But his efforts coincided with the recession, providing new See LIZ CLAIBORNE on Page 29 Why does the verb ‘curate’ suddenly have so much currency? CLOTHES BY ANY OTHER NAME Brand net sales (in millions) % change for quarter ended March 31, 2011 $110.2M -4% JUICY COUTURE is the largest label but also the sales laggard. $86.5M +46% $100.4M +20% LUCKY BRAND JEANS is revamping itself with more-feminine looks. Source: Fifth & Pacific Cos. KATE SPADE gets the award for fastestgrowing brand. 2 | Crain’s New York Business | May 21, 2012

Table of Contents for the Digital Edition of Crains New York - May 21, 2012

Crain's New York - May 21, 2012
Contents
Council Defies Mayor, Scares Business Leaders
Renegade Ceo Bucks Albany to Save His Hospital
Back to JPMorgan Chase’s Woes Have Some Local Bank Rivals Circling. in the Markets.
New York, New York
Hopes Rising Along B’klyn Waterfront in Sunset Park
Why Charlie Rangel Could Lose His Seat
Small Business
Viewpoint
Ibm Inside Big Blue’s Brain Trust, Which Pulled in More Than 6,180 Patents Last Year, the Most Ever by a Single Company. No Wonder the Stock Price Has More Than Doubled in the Past Five Years.
The List Our Annual Review of the New York Area’s Largest Publicly Held Companies, Ranked by Their 2011 Revenues.
What’s Up (And Down) at News Corp., Cbs, Bed Bath & Beyond, Vornado Realty, Mastercard, Jones Group, Revlon and Others.
For the Record
Classifieds
Real Estate Deals
The Week on the Web
Matchmakers Find Their Own Chemistry
Anne Fisher Tapping Into Human Emotions Pays Dividends
Hot Jobs
Executive Moves
Movers & Shakers Real Estate Veteran’s Surprising Switch
Gael Greene Dragonfly Lands on UES

Crains New York - May 21, 2012