2000 Retrospective

Y2K began with an economic boom that looked like it would go on forever and it ended with high-profile dot-com failures and an economy trending down. In between were comings and goings, legislation and litigation, start-ups and shut-downs, trade shows and protest demonstrations. There was even time for a few fashion shows.

JANUARY

The California Mart branch of the California Federal Bank was robbed the morning of Jan. 3; the suspect was promptly arrested when he took time out from his getaway to buy apparel...Assembly Bill 633 (a bill that protects garment workers from wage violations and serves as the first garment manufacturers’ liability law) became the law in California, but what, exactly, did it mean for retailers?...The Garment Contractors Association of Southern California named Esther Dunbar, president of Montebello, Calif.-based G.S. Dunbar & Co., its new president...A “flat” exhibitor count at the Jan. 7–9 Surf Expo in Orlando, Fla., had organizers mulling later dates for future shows...Will technology be crucial to keeping the apparel industry in California?That was the question at an event, sponsored by the California Trade and Commerce Agency on Jan. 12...The California Mart went on the sales block...Wal-Mart’s president and chief executive officer, David Glass, stepped down and was replaced by Lee Scott...Minneapolis-based Dayton Hudson Corp. changed its name to Target Corp....Los Angeles-based contemporary manufacturer and retailer Bisou Bisou acquired a 1,500-square-foot store in the Fashion Show mall in Las Vegas from Mondi of America...The Consumer Confidence Index reached 144.7, the highest point in its history.

FEBRUARY

Vernon, Calif.-based Chorus Line named Steve Gerbsman as its interim CEO, following the departure of Andrew Cohen, who joined Los Angeles-based Laundry by Shelli Segal as CEO...The Museum of Tolerance presented an exhibit that included sewing machines and barbed wire depicting an El Monte, Calif., sweatshop, where Thai nationals were found enslaved in 1995...Tie-dye was back in vogue during Los Angeles Fashion Week...High attendance and high sales were the watchwords at MAGIC International, which drew 3,600 exhibitors and more than 91,000 visitors for its Feb. 14–17 run in Las Vegas...Vernon, Calif.-based Sirena Apparel Group Inc., continuing to reorganize under Chapter 11 bankruptcy protection, named Brian Zientek as its new CEO...The latest buzzword in cyberspace was “business-to-business”(B2B)...Awards at the Costume Designers Guild gala on Feb. 12 went to Anthony Powell (for career achievement) and Julie Weiss (for “American Beauty”), among others...British retailer Holland & Holland shuttered its 6,000-square-foot store on Rodeo Drive on Feb. 28...Actress/singer Jennifer Lopez’s little green Versace, worn to the 2000 Grammys, not only showcased her charms but it started a trend—the deep V-neck —for extreme exposure!...Sugar designer Dana Dartez sold her 50 percent stake in the Irvine, Calif.-based juniors line she helped found to take the top design spot at Quiksilver’s juniors label Roxy.MARCH

Wilmington, Del.-based DuPont Lycra and South Korea’s Saehan Industries formed a joint venture to manufacture and market unbranded spandex fibers...Guess? Inc. was awarded more than $6 million in a case that pitted the company against its long-time licensee Pour Le Bebe, which was accused of selling Guess merchandise to unauthorized retailers...The Caribbean Basin Initiative (CBI) and legislation that would grant normal trade status to China continued to work their way through Congress...The U.S. Supreme Court in a March 22 ruling held that fashion knockoffs generally do not violate trademark laws ...Los Angeles-based label Bonnie Strauss halted production after failing to fill Spring/Summer orders...Assembly Bill 633 might be the law in California, but retailers, unionists and activists were still arguing over whether implementing it meant that retailers could be held responsible for labor-law violations...At month’s end, more than 100 potential buyers had looked into the California Mart, which had an estimated asking price of $100 million...Purple was the color agrave; la mode and the glitz-and-glam ’80s were back in fashion.APRIL

Wearable wireless technology made its debut on the runway at the Internet World trade show in Los Angeles, April 3–7...New B2B players included Apparelbuy, Retek, Fasturn, Fashionchain and Closeoutnow...There was no sign of a slowdown at the April 7–11 Fall 2000 market week run at the California Mart and New Mart...Oscar winners were barely finished thanking their agents by the time ABS by Allen Schwartz announced that its Oscar gown “reproductions,” including Cameron Diaz’s Versace for $300, would be in stores by June...Former state deputy labor commissioner Howard Hernandez was sentenced to 36 months in prison following his guilty plea to charges of taking bribes from Korean and Korean-American garment contractors...Diesel opened a 3,000-square-foot store at the Beverly Center in West Hollywood on April 15...Chorus Line was taken over by Levine Leichtman Capital Partners Inc....Montebello, Calif.-based Apparel Manufacturers Supply Co. and Los Angeles-based Komar-Stitchcraft merged, creating Komar Apparel Supply Company LLC, on April 28...Grey Ant designer Grant Krajecki’s show at the Vinyl Club in Hollywood got a little too edgy when a model’s leg was accidentally cut with a knife; then there was the spectacle of the writhing topless woman carried off stage by four men; and, of course, there were the Grey Ant clothes that mixed ’70s disco with ’80s punk. MAY

The growing influence of Los Angeles’ hip young designers gave a boost to business for higher-end fabrics at the Los Angeles International Textile Show, held May 1–3...The American Apparel Manufacturers Association agreed to merge with Footwear Industries of America; the new trade group would be called the American Apparel and Footwear Association...The Caribbean Basin Initiative (CBI) passed the U.S. House of Representatives...The ’70s and ’80s were officially back in fashion...Neil Hoffman announced his retirement as president of the Otis School of Fashion Design; his successor was Samuel Chuen-Tsung Hoi, dean of the Corcoran College of Art and Design in Washington, D.C....James E. Osterreicher announced his retirement as chairman and CEO of Plano, Texas-based J.C. Penney Co.JUNE

The U.S. House of Representatives passed legislation to normalize trade relations with China...President Clinton signed the CBI/Africa trade bill, providing tariff breaks on African and Caribbean imports...Boo.com folded, despite its estimated $100 million in start-up funds...Hertz Investment Group closed its deal to buy the California Mart; Judah Hertz announced that he would move his offices to the Mart...The California Fashion Association (CFA) announced that it would become a component of the Los Angeles Economic Development Corp. (LAEDC); Ilse Metchek, head of the CFA, also became head of Los Angeles by Design...Vernon, Calif.-based Chorus Line and Los Angeles-based Carole Little Inc. agreed to merge, becoming CL Fashion, in a deal financed by Levine Leichtman Capital Partners, owners of Chorus Line... “More is More” and “Gold is Golden”—those were the watchwords for the new season’s accessories...Buying office Left Coast Style formed in the wake of Atkins California closure...International Swimwear and Activewear Market (ISAM) canceled its July show, with plans to return in October...Accessories and apparel manufacturer Paul Frank Industries opened its first flagship store at the company’s Newport Beach, Calif. headquarters...Los Angeles-based investment firm Wilshire Partners acquired Los Angeles-based lingerie manufacturer and retailer Frederick’s of Hollywood.JULY

Leadership at the Textile Association of Los Angeles (TALA) changed on July 1, with president Len Horowitz stepping aside to take the post of TALA executive director and TALA veteran Ann Davis stepping in to fill out the remainder of his term...Frederick’s of Hollywood filed for Chapter 11 bankruptcy protection...Dolce & Gabbana opened a 4,700-square-foot flagship store in Beverly Hills...E-commerce technical innovations included advanced color correction software, zoom-in software and virtual dressing rooms...The strength of Hong Kong Fashion Week Spring/Summer 2001, held July 11–14, ratified the region’s economic comeback...South American influences were strong and buyers were out in force at the Swimwear Association of Florida’s Cruise 2001 show, held July 15–20 in Miami...The Glendale Galleria opened a new section dubbed The Zone and aimed at teen shoppers on July 14...June’s economic data came in tepid in a number of categories, including generally weak retail sales, spurring talk of a possible U.S. economic slowdown...California Employment Training Panel (ETP) green lighted a program to reimburse garment contractors for payroll expenses related to training new production workers or existing employees upgrading their skills.AUGUST

Teen celebrities at the 2000 Teen Choice Awards, held Aug. 6 in Santa Monica, opted for the sexy look...On Aug. 17, activist groups including United Students Against Sweatshops and the Coalition for Humane Immigrant Rights in Los Angeles gathered in the Fashion District for a march to the nearby Democratic National Convention; the demonstration was loud, colorful, intense and peaceful...One week after Giorgio Beverly Hills closed its doors, clothing designer Max Azria announced he would reopen them, dividing the space between his BCBG nameplate and Giorgio...Costuming Emmys announced at an Aug. 26 ceremony included statuettes for “Providence,” “Introducing Dorothy Dandridge” and “Cher: Live in Concert”...MAGIC International and its various related shows drew an estimated 96,000 visitors and 3,200 exhibitors for its Aug. 28–31 run in Las Vegas; many buyers were looking for holiday merchandise, and almost everyone was looking for the newest looks in the hottest fabric, denim...Vernon, Calif.-based Sirena Apparel Group emerged from Chapter 11 bankruptcy protection, with plans to continue as a privately held company...Huntington Beach, Calif.-based surfwear manufacturer Quiksilver entered the contemporary market with new line Alex Goes.SEPTEMBER

Badgley Mischka opened their first West Coast boutique on Sept. 7 in Beverly Hills...The Action Sports Retailer Trade Expo (ASR), held Sept. 8–10 in San Diego, saw a rise in attendance to 20,115 (up 856 from the previous year), with several new-to-the-show manufacturers making the scene...Bobbin Americas, held Sept. 13–15 in Atlanta, saw a slight drop in attendance, but nonetheless drew an estimated 10,000 visitors and approximately 450 exhibitors...On Sept. 15, Allen Questrom, formerly head of Barneys of New York, took over as chairman and CEO of J.C. Penney...At Surf Expo 2000, held Sept. 15–17 in Orlando, Fla., the mood was mellow and laid-back, attendance totaled 15,000 and the exhibitor count was 750...On Sept. 26, Maurice “Corky” Newman and Richard Gerhardt, the former CEO and CFO, respectively, of the Sirena Apparel Group, were arrested and charged with securities fraud and various related violations... The mood was upbeat, but the approach was generally wait-and-see for the debut of the Material World fabric, trim and sourcing show, held Sept. 25–27 in Miami Beach...Vacancy rates for ground-floor space in the Los Angeles Fashion District were down to just 2 percent...The Consumer Confidence Index, at 141.9, remained sky high, but the Salomon Smith Barney Index of 50 retailers was down nearly three full points from September 1999, signaling the effects of high oil prices and a low must-buy quotient for back-to-school fashions. OCTOBER

On Oct. 1, Alan J. Lacy became CEO of Hoffman Estates, Ill.-based Sears, Roebuck & Co.... Milo Revah, co-owner of Revah Industries, maker of JNCO apparel, was named Man of the Year at the Fashion Industries Guild of Cedars-Sinai Medical Center’s annual gala on Oct. 7...Santa Monica, Calif.-based designer David Cardona received the Moda Award at the Los Angeles Hispanic Designers gala, held Oct. 12 in Beverly Hills; the gala featured fashions from Cardona as well as other Los Angeles designers including Henry Duarte, Estevan Ramos and Tarina Tarantino....Peter Yoo was named president of Los Angeles-based One Clothing, replacing Ace Ross, who filed a $20 million breach-of-contract suit against his former company... Trend presentations during the Oct. 23–25 run of the Los Angeles International Textile Show attracted SRO crowds who heard fashion trends forecasts that ranged from rich, “spiritual” colors and “1980s rebel” to vintage 1940s florals and “wartime glamour”...The industry continued to hammer out details of Assembly Bill 633, which included language that seemed to exempt retailers from registering with the state as manufacturers...The California Industrial Welfare Commission (IWC) voted to raise the state’s minimum wage with two 50-cent-an-hour increases; the first would bring the minimum wage in California to $6.25 per hour...Layoffs at several consumer-oriented e-commerce Web sites were underway... Consumer confidence fell to 135.2, its lowest level in a year...Los Angeles-based young men’s and juniors manufacturer Tag Rag entered the contemporary market with new label Fiona London.NOVEMBER

Buying was “steady” or “cautious” at Spring 2001 Los Angeles market week, held Nov. 3–7 at the California Mart and the New Mart...Notable fashion shows held during fashion week included Cornell Collins, Gen Art 2000, the Coalition of Los Angeles Designers (CLAD) Estevan Ramos, Michelle Mason, Josephine Loka, John Cherpas, Fever, Grey Ant, the California Mart Collective Fashion Show and the Pacific Coast Travelers show...Robbers held employees hostage at the Target store in Culver City, Calif., on Nov. 6, but the incident ended with no employees injured and three suspects in custody...On Nov. 7, the United States elected a new president, but it would be five weeks before the country learned who...Bebe Stores Inc. opened a 7,500-square-foot flagship store on the Third Street Promenade in Santa Monica...Louis Vuitton opened two new “global” stores; one in South Coast Plaza, the other in San Francisco’s Union Square...On Nov. 17, Chorus Line and Carole Little closed their doors after three unsecured creditors, who claimed they were owed a combined $139,000, filed a Chapter 7 involuntary bankruptcy petition against Chorus Line, a unit of CL Fashion; soon after, a series of employee-led demonstrations began, targeting Levine Leichtman Capital Partners, CL’s parent...Windsor Fashions’ sneak peak at Prom 2001, held on Nov. 19 in West Hollywood, featured looks ranging from princess to tough chic...On Nov. 21, garment workers employed by a contractor for XOXO Clothing Company filed suit against the contemporary juniors manufacturer, seeking back wages, overtime and damages...Group B Clothing, the Vernon, Calif.-based maker of the Democracy label, was purchased by St. Louis, Mo.-based Kellwood Co....”Black Friday,” the first shopping day after Thanksgiving, got the holiday season off to a solid and (in some cases) spectacular start; and the Conference Board, a New York-based nonprofit research institute, predicted that, when all was said and done, holiday Y2K retail sales would match 1999; meanwhile, consumer confidence continued to fall. DECEMBER

On Dec. 3, dismissed CL Fashion employees picketed again, calling for back wages and other monies they said were due. The company converted the involuntary Chapter 7 filed against it in November to Chapter 11 bankruptcy protection...President-elect George W. Bush Jr. began talking about a possible recession, but whether he was being prescient or simply inviting an economic downturn seemed to depend on whether it was a Republican or a Democrat who was interpreting... Consumer traffic for Week One of holiday Y2K was down 14.8 percent in malls and 17.2 percent in department stores, according to the National Retail Federation (NRF)...XOXO Clothing Company agreed to pay garment workers $62,000 in a surprise settlement of a suit the workers filed earlier for back wages owed to them by a contractor...The U.S. Department of Labor levied more than $270,000 in penalties against 17 Los Angeles garment contractors, charging them with repeated violations of the Fair Labor Standards Act...Traffic during the second full week of holiday Y2K was down 9.6 percent in malls and 14.4 in department stores, according to the NRF...Bad weather put the brakes on the holiday’s final-weekend shopping surge; an initial estimate put the average retailer’s year-to-year increase at just three percent. PASSINGS: William “Bill” Balbinder, an independent sales representative, age 69 ... Joan Berk, the California Mart’s chief retailer-relations representative, age 69...David Berman, a television and film costume designer whose credits included “Lawrence of Arabia” and “I Love Lucy,” age 90...Sammy Jaron, a founder of the Cutters Club of Southern California, age 93... Arnold Lorber, who survived the Holocaust in his native Czechoslovakia, then went on to pioneer the textile business in Los Angeles with his Gardena, Calif.-based Lorber Industries, age 68...George Randall, a co-founder of Yes Clothing Co., age 69...Ben Stevens, the retired founder of Joy Stevens, a maker of blouses and shirts that operated until the late 1980s, age 85...Martin Wernicke, publisher of California Apparel News, age 78 ... Rest In Peace.QUOTE OF THE YEAR: “California is a brand.”—Ilse Metchek, executive director of the California Fashion Association. —Louis Chunovic (with appreciation to the Y2K staff at California Apparel News and apologies to anyone who was left out)