OMG. HATS. Not just any hats. Philip Treacy hats.

• American Apparel can add an investor lawsuit to its list of troubles. They allege that Dov Charney has misled them and mismanaged the company. [PRLog]
• Meanwhile, analysts predict the overextended chain will close many of its unprofitable, redundant stores. [Crain's]

The unconventional material challenges are always super fun, and in last night's episode, the designers whipped up party outfits — made from crap bought at a store called Party Glitter.

• Judging from this ad, Avril Lavigne's perfume, Forbidden Rose, smells like eyeliner, cast iron, a decaying forest in winter, and an incongruous hair-bow like the ones your mother used to make you wear for family pictures. [TLF]

• Uh-oh. Lady Gaga's boyfriend is still seeing his other girlfriend.

Last night, the designers were challenged to create something for the Marie Claire woman, which would be featured on a billboard in Times Square. At the end, there was a cameo appearance by Coco Rocha!

• Emily Blunt told British Elle that Photoshop is over-used. "I don't like it when they stretch you out and make you all long and skinny. It makes you look like a Barbie. Who the hell looks like that?" [Elle UK]

Last night's premiere of Project Runway attempted to breathe new life in the aging series by featuring a new style of introductions. Plus: Tim and Heidi announced that one — or more — designers would be eliminated right away.

The people I was rooting for have left the show, but I'm psyched for the Project Runway finale tonight! To celebrate, here's a gallery of Nina Garcia's best reaction faces — bored, disapproving, disappointed — it's all here.

Since the producers love to drag things out and torture the PR audience, last night's episode wasn't really the finale, it was the finale PART ONE. The remaining four designers had $9,00 and four months to create collections.

We call Project Runway The Greatest Show On Earth, so it was fitting that last night's episode — in which the final four were decided — began at the circus.

Last night in a ProjRun first — and a feat of integrated advertising — the designers created their own fabrics (using software and computers made by a sponsor). It was all downhill from there!

I love New York! I grew up here; it's a helluva town. But last night's episode — in which the designers had to come up with ensembles inspired by Manhattan neighborhoods — made NYC look like a dull, colorless place.

The challenge on last night's episode was to design a garment "inspired" by the elements: Earth, air, fire, water. Unfortunately, no one levitated or got a Connie Francis-themed jukebox, like in The Craft.

Last night's episode was the one I've been waiting for. Thinking outside the box! Using nontraditional materials! Making models look like half-naked '60s go-go girl Barbie dolls!

"Design" an ensemble (i.e., "scroll through preselected clothing items") in the new PR game and hear Heidi Klum, Tim Gunn, Michael Kors and Nina Garcia say things like "Where was the glamour? Where was the vision?" [WWD]

Last night's episode involved designing looks for little girls, but the contestants were the ones who acted like brats.

Spoiler alert! The finalists of Project Runway Season 7 showed their designs at Mercedes-Benz Fashion Week today. Pictures from the collections after the jump!

Shit just got real.