Women's Wear Daily is reporting that Bernard Arnault has at last found a replacement for John Galliano at Christian Dior, the €21 billion luxury brand that is one of the biggest and sparkliest jewels in LVMH's crown. According to "sources," Marc Jacobs is in "talks" to leave Louis Vuitton to take over Dior. Phoebe…

On the night of Thursday, February 24th, John Galliano was arrested for allegedly launching into racist and anti-Semitic tirade against two strangers at a Paris bar. Within hours, two more alleged victims of Galliano's hate speech had come forward to police, and a notorious video of Galliano drunkenly slurring, "I…

Reactions from the fashion industry to John Galliano's firing by Christian Dior are still rolling in. Which is hardly surprising, considering Galliano's prominence. Galliano oversaw the creative direction of a fashion house — and a global luxury brand — that last year realized revenues of over $28 billion.

• A tragic explosion at a ruffle factory in rural Italy led to the release of the complete khaki hideosity that is the Valentino for Gap collection. Ruffled jackets, ruffled hoodies, ruffled t-shirts, and ruffled cargo pants are included. [Daily Mail]

• One of the perks of having an international supermodel for a girlfriend must be that you get to cast her in ads for your funny Moscow apartment development. Naomi Campbell's performance here seems more dutiful than inspired, however. [Copyranter]

• Lindsay Lohan is leaving rehab today for a very special reason: to shoot a campaign for Kira Plastinina, the bankrupt-but-now-revived fashion label designed by a Russian orange juice oligarch's teen daughter. Remember when Lindsay did campaigns for Miu Miu? [TMZ]

• Detmar Blow and Tom Sykes are trading jibes with Lauren Goldstein Crowe over their dueling Isabella Blow biographies, both of which hit U.S. bookstore stores this week. Everyone is sniping at everyone over the email, sometimes in ALLCAPS!!!

• Miranda Kerr was photographed nude at six and a half months pregnant by Patrick Demarchelier. She told W magazine she realized she was knocked up the day she shot her Jil Sander campaign. Full pic below. [Fashionologie]

• There is a surfeit of Kardashian-reated news this morning! The Sisters K have, variously, a newly opened store, a broken toe, a Christian Louboutin reaction quote regarding said injured digit, and a new credit card with their faces on it:

• American Apparel is struggling along. But in addition to its other problems, it is facing a "cash crunch." Dov Charney is reluctant to sell to more outside investors, however, because he wants to hold onto his 53% majority stake. [NYPost]

• Madonna thought the legendary photographer was angry at her, maybe "because I'm still nice to Herb Ritts??" She was making A League Of Their Own at the time, and wrote about how much she hated actresses — particularly Geena Davis:

• The mystery man Gisele Bündchen was seen canoodling with at a Paris Vogue party is believed to be a New York art dealer — and ex-boyfriend of Bündchen's fellow Brazilian model Ana Beatriz Barros — named Helly Nahmad. Ahem. [Racked]

So-called "ethical" fashion is going high-end. This season, there were major ethical and "sustainable" fashion shows at both Paris and London fashion weeks, the latter held at Prince Charles' house. And luxury conglomerates want a piece of the "green" action.

• Gwyneth Paltrow made the August cover of Vogue. At least this time, they got her head screwed on right. The cover disproves the rumor that Paltrow would be the September covergirl, leaving that slot potentially open for Halle Berry. [JustJared]

• American Apparel — plagued by debt, sales declines, production delays, and that discrimination kerfuffle — warned that its stock may be delisted. "American Apparel is unique because they're on the cusp of a total collapse," says one analyst. [MSNBC]

• Pictures of a 15-year-old Angelina Jolie modeling for photographer Harry Langdon will be auctioned in California on Friday. [Vogue UK]
• Karl Lagerfeld dressed Simone Veil in Chanel for her induction into the Académie Française. [WWD]

• Model Rie Rasmussen, upset Terry Richardson included her picture in his book Terryworld alongside images of young girls performing sex acts, confronted the photographer at a party in Paris for using his position of power to exploit women. She said:

• Zooey Deschanel and Solange Knowles are joining Kate Moss, Coco Rocha, and Georgia May Jagger as the faces of Rimmel. [WWD]
• Meanwhile, Leona Lewis is the next face of American cotton's long-running "The Fabric of Our Lives" campaign. [Sun]

• If you share our concerns about the lovely Alexa Chung's posture, you will not find her Vogue UK cover, or the editorial that goes with it, particularly soothing. [ONTD]

• Louis Vuitton proposed Annie Leibovitz do an ad as a solution to her financial problems. Leibovitz instead offered her fee to Mikhail Baryshnikov; Louis Vuitton wouldn't hear of it, and ended up paying them both. Rich people: so lucky. [WWD]