• Waiting, with Diane Von Furstenberg, for Mayor Bloomberg to arrive in Queens, Anna Wintour said, "If he doesn't show, Diane and I will run on a joint ticket and take over the city." Was that a...joke? Then Lindsay Lohan stole.

• The new Emanual Ungaro creative consultant thingamajig dutifully turned up at the Ungaro store for Fashion's Night Out, selected a leather jacket that met with her approval, and headed for the door. Sales assistants ripped off the tags. [NYDN]
• Yesterday afternoon, Gwen Stefani watched her own presentation, for her L.A.M.B. clothing line, from the audience. It took a while for anybody to recognize her, but once they did, she was mobbed — unusually, for fashion week, where everyone generally pretends not to notice the celebrities, and the celebrities wearily pretend not to notice that they're studiously being not noticed. Also Stefani and husband Gavin Rossdale made out. [The Cut]
• Claudia Schiffer, 39, has posed for an unretouched fashion cover and spread in Tank magazine. However, she is wearing makeup. [Telegraph]
• 13-year-old style blogger Tavi will be front row — with her dad — at Rodarte, due to her friendship with designers Kate and Laura Mulleavy. Tavi, who's on the cover of the current issue of Pop, is also reporting on the shows for the magazine. But the best part? She shops at Loehmann's with her mom. [WSJ]
• Eric Gaskins, the ex-designer behind the formerly anonymous blog The Emperor's Old Clothes, has a book deal and a television show in the works. [WWD]
• Last night, Zac Posen doused and stenciled four cream colored dresses worn live by model Anna Cleveland with paint. Because Fashion's Night Out is all about a) wearing pink leopard print capes to make grand entrances and b) stripping down to a tee shirt and getting one's hands dirty to "make people connect with the creative process." [USAToday]
• Nobody wanted to play Wii tennis with designer Chris Benz. And Justin Timberlake hid for an hour from screaming fans inside the bridal salon at Saks. [NYObs]
• Giorgio Armani says he has made a complete recovery from hepatitis. [AP]
• Peter Som, nobody should consider bread, chocolate, and cheese to be "guilty pleasures"! [GlamChic]
• The design duo behind label Libertine, Cindy Greene and Johnson Hartig, have split up. Hartig will take control over the line, and "return to its roots." [WWD]
• Vena Cava designers Lisa Mayock and Sophie Buhai have two special guests in from California at each one of their presentations: their mothers. [The Cut]
• Monique Lhuillier is pregnant, and due in November. She plans to name the daughter Sophia. Congratulations! [WWD]
• Life advice from Carolina Herrera: "You have to be so happy. You have to love what you are doing...life is complicated, but you have to make the best of it." [GlamChic]
• Remember how Thierry Mugler trumpeted his costume designs for Beyoncé's current tour? Turns out he may have had help from a high-profile freelancer, an experienced costume designer named Chris March. The Project Runway alum is suing Mugler for failing to pay for his services. March is also investigating starting his own line of women's wear with QVC. [WSJ]
• Dries Van Noten, after accepting his award from the Museum at FIT's Couture Council, asked to speak to FIT students. The hour-long Q&A covered everything from his aesthetic, design processes, and perspectives, to his business model. Van Noten founded his label without a backer, and remains self-owned today. "I don't have managers pushing me for fragrance licenses, but I'm informed. I know what Barneys is selling well. I'm known for flowers, but where others might be pressured to put a little bit of flowers in because that's what sells, I can still do a collection of black-and-white and checks," said the Belgian. [WWD]
• Tom Ford, on the release of his first film, A Single Man: "Of course I'm terrified because in a way it's the most personal thing I've ever done and it's the thing that is the most expressive of who I am." The main character, George, played by Colin Firth, is a middle-aged gay man who contemplates suicide following the death of his partner in a car crash. Ford says he based George's preparations for suicide on the actual suicide of a family member: "Someone did kill themselves in exactly that way — went to the store, bought a gun...went home and got a sleeping bag...laid everything out, got into the sleeping bag, zipped it up and killed himself because he didn't want to make a mess." Because it's an Isherwood adaptation, there will be lots of shots of men swimming naked, and playing tennis topless. [Reuters]
• The Buckle is continuing its peerless run of solid growth in sales and revenue, even during this recession. The retailer has now had ten consecutive quarters of same-store sales growth, and its second quarter net income rose 12%, to $25 million. [TS]
• Analysts are pleased by Ann Taylor's turnaround. Although the company announced a second quarter loss last month, stock has risen 21% since then. [Crain's]

• Model Liskula Cohen has confronted the woman revealed as the author of a hate-blog directed against her. Cohen told the woman that she forgave her, but the blogger did not apologize — probably because a defamation suit is pending. [P6]

• Brett Favre is going to be the new face, and presumably butt, of Wrangler jeans. [WWD]
• Marc Jacobs and Lorenzo Martone are reportedly eloping to Massachusetts this weekend. [P6]
• Elisabeth Moss, who plays Peggy Olsen on Mad Men, is sick of wearing mustard, says costume designer Janie Bryant. [W]
• Stella McCartney's perfume, Stellanude, will launch as planned, because Ali Hewson's court bid to prevent it has failed. Hewson runs a company called Nude Brands, and markets a line of skincare under the Nude trademark. [Telegraph]
• The headline — "David Bailey: Still Snapping Away At 71" — might as well just read "David Bailey, Amazingly, Still Alive." But the legendary British photographer actually has plenty to say on the topics of retouching and American Vogue: "D'you know any model over the age of 23 has to be touched up these days. Twenty-three? It's fucking ridiculous but that's what you have to do for American Vogue and it's getting to be the same over here." [ToL]
• Anna Wintour personally approves every photo published by Vogue's blog. [The Cut]
• Meanwhile, sources say that Vogue attracted early attention from the consultants McKinsey because they believe it is a model of a larger Condé Nast title, and that the lessons learned from studying Vogue will be applicable to other magazines. Vogue, representative? More likely it drew the money-savers' eyes first because of its legendary profligacy. [NYObs]
• Michelle Obama's principal hairstylist says, "I believe hair is a language, if it's not moving it has no voice." [W]
• Meanwhile, is there any reason Simon Doonan might be measuring the White House drapes? Or shall we just assume the Obamas have hired the wittiest interior designer ever? [VF]
• Ed Hardy designer Christian Audigier says there will be no Jon Gosselin clothing line. And we were so hoping. [E!]
• Sex-era Vivienne Westwood punk clothing is so popular that people are counterfeiting it now, a generation later. Three people were arrested in London and charged with fraud for allegedly selling clothing they claimed had come from Malcolm McLaren and Westwood's infamous store. [WWD]
• If you want to be an It Girl, Refinery29 created a handy charticle for your edification. It helps if you have the Cobrasnake's number. [Refiner29]
• Mario Grauso, the president of Puig Fashion Group, which owns Carolina Herrera and Nina Ricci, among other houses, is rumored to be resigning. [WWD]
• This fashion blind item is kind of generic, but anyway: "Which designer won't be showing in the Tent this year, like he usually does? Rumor has it he'll send his gorgeous gowns down the Salon's runway instead." Could be almost anyone, in this economy. But perhaps it's Zac Posen? [Fashionista]
• Earlier this month, the Michael Kors boutique on Prince Street in SoHo was burgled. A man distracted the security guard at the neighboring Apple store and made off with $13,000 worth of merchandise. [Villager]
• Pop-up stores are barely news these days, but if Rodarte is doing one at Colette in Paris this October, and selling DVDs of The Texas Chainsaw Massacre and stuffed knit animals, that actually sounds cool. [WWD]
• Two men have now been arrested in connection with the $66 million jewelry robbery at the Graff store in London. [NYTimes]
• The Humane Society wants the FTC to investigate Bergdorf's and Neiman Marcus for allegedly mislabeling fur products. The Society alleges that both stores sold Manolo Blahnik boots made from ocelot fur, an endangered species. [WWD]
• The Limited's second quarter profit declined by 27% on last year's numbers. [WSJ]
• L.L. Bean is shaking things up with a new creative director, Rogues Gallery's Alex Carleton. [NYTimes]
• The Buckle has continued its trend of positive results, despite the recession. The last quarter saw its profits rise 12% on the same period last year, to $25 million. [WSJ]

• How cool are these Charlie Brown New Balance sneakers? Cool enough that we wish they weren't just for kids. [WWD]
• A London artist has created Kate Moss and Agyness Deyn paper dolls which look frighteningly like the real thing. [Pipeline.Refinery29]

• Your daily dose of the horrible: American Apparel shiny leggings for children. [Fashionista]
• Police in France have arrested 25 suspects in relation to last December's $118 million jewel heist at Harry Winston. Members of the alleged ring had been under police surveillance for months, and when arrangements had been made between the gang and some prospective buyers, the authorities swooped in. In addition to the 25 arrests, police found weapons and $345,000 in cash. [AP]
• Nicole Richie swears that her next collection for her House of Harlow 1960 jewelry line will be completely different than the first. In fact, it'll be "focusing more on old English, equestrian and more sophisticated looks" than the flea-market-inspired first trip out the gate. Richie's shoe and accessory lines, meanwhile, will be ready for Spring 2010. [People]
• Dolce & Gabbana, newly internet-savvy, uploaded Fall 2009 Dolce & Gabbana and D&G campaigns to its just-launched website. Steven Klein shot Mariacarla Boscono, Edita Vilkeviciute, and Heidi Mount at a casino for Dolce & Gabbana, and Mario Testino shot Katie Fogarty, Sara Blomqvist, Stephanie Rad, Hanna Rundlof, and Ragnhild Jevne for D&G. Heidi Mount also wears a giant pink Margiela-inspired fur and poses like an ape in one. [Fashionologie]
• The New Yorker sure knows how to give a bad restaurant review. Taking in the "sterile" and "unexuberant" fare at Armani's restaurant-within-a-store on Fifth Avenue, Lauren Collins writes: "At the bar, a manager and a bartender argued, loudly. The dispute seemed to be about a pen. Their passion did not extend to a pair of women who were waiting for a table, or, once the women were seated, to their full glasses of wine, paid for and awaiting transferral." [NYr]
• A historic Christian Science church on Park Avenue took a look at its dwindling congregation and finances, and its stellar real estate, and do the obvious thing: allow a catering company to use its building to host events, in return for necessary repairs, money, and continued access for regularly scheduled services. Even though the kind of events we're talking about here — shindigs with Sir Paul McCartney, Oscar de la Renta runway shows — are hardly Bushwick artist loft keggers, the Park Avenue set has gone all guerrilla in its opposition to the church's activities. One neighbour even parked her car in the middle of the avenue to block the access of de la Renta's show's guests. Is it too much to hope she was towed? [NYTimes]
• A maker of hypoallergenic beauty products has decided to associate its line with the 11th birthday of Malia Obama. Tacky. [US News]
• Natural cosmetics purveyor Dr. Hauschka is apparently swamped by demand — but, because of quality control concerns and its business philosophy based on the ideas of Rudolf Steiner (no, really), it's unwilling to expand too quickly. [Reuters]
• The website for MDLR, Moises de la Renta's fashion line, is now live. [MDLR]
• French documentarian Loïc Prigent, who made the excellent Marc Jacobs & Louis Vuitton and Signé Chanel, about the putting together of a Chanel couture collection, has a new series showing on Sundance starting September 10. Prigent's camera follows Sonia Rykiel, Proenza Schouler, Karl Lagerfeld, and Jean-Paul Gaultier in the last 36 hours before their respective runway shows. (It's a good thing Prigent is sensitive to the dramatic tension of a smoke break, because there'll be a lot of them.) Rykiel's show is her 40th anniversary extravaganza in Paris last October, Prigent finds Proenza Schouler and Fendi, designed by Lagerfeld, at the Fall/Winter 2009 collections of this Spring, and he'll catch up with Gaultier at couture week in Paris next month. I'm marking my freaking calendar. [Glamour]
• Looks like there's been a breakdown at Alessandro Dell'Acqua. The designer, whose namesake label has been owned since 2003 by Cherry Grove, an Italian corporation that produces high-end clothing, released an open letter informing the fashion world that he, Alessandro Dell'Acqua, would like to publicly distance himself from the Alessandra Dell'Acqua men's Spring/Summer or women's Pre-Spring collections, the former of which is about to walk in Milan, because he hasn't been given the opportunity to do anything beyond submit sketches to Cherry Grove. Alessandro Dell'Acqua lost his job with the Italian house Malo after holding it for less than a year following Itierre's bankruptcy; this angry letter reads like a gold-plated invitation to be fired from his own label, too. [FWD]
• Once every media outlet had dutifully covered the "outrage" over the Steven Meisel-shot Calvin Klein "foursome" billboard in SoHo, the brand replaced it with a tamer shot of a girl in a red bikini. Racked has a picture. [GoG]
• Well, lookie here: a male model who admits to having to maintain a diet to be catwalk skinny. [NYTimes]
• Everyone knows Abercrombie & Fitch has been struggling in the recession, and losing market share to lower-priced competitors like Aéropostale and The Buckle. Besides quietly breaking its rule against discounting its own stock and closing its Ruehl chain, the company hadn't exactly said what it was planning to do to reverse the tide that saw its May same-store sales slide a whopping 28% — until now. The proffered solution? Two hundred and ten store leases, which comprise some 20% of the chain's total, are up for renewal over the next two years. Abercrombie thinks it might save money by not renewing all of them. Revolutionary. [TS]
• A three-story Adidas factory in India was engulfed by flames on Tuesday night. There were no casualties. [HindustanTimes]
• Talbots may have had to cut 370 jobs, eliminate its 401(k) matching contributions, and suspend its quarterly stock dividend, but that won't stop it paying CEO Trudy Sullivan $1.2 million this year. Richard O'Connell, the struggling company's real estate and legal executive, will also get a 23% raise, to $500,000. [TS]
• Gen Art, an organization which supports emerging fashion talent in the U.S. and has helped launch the careers of such names as Vena Cava and Zac Posen, is in a bad spot financially. Already reeling from layoffs, the founders hope to raise $250,000 in ticket sales and donations for their 15th anniversary party tomorrow night. Gen Art needs another $500,000 after that to continue its operations. [WWD]

Relatively speaking, a 3% increase in same-store sales for the month of December 2008 isn't terrible only in the sense that it's not actually a decline — such as that experienced by the retail sector as a whole, where same-store sales shrank 0.9%, and by individual competitors like Abercrombie & Fitch and the Gap, whose December sales were down by over 20% on 2007's numbers. But let's not forget it's also not stunning. The previous year, American Apparel managed to raise December same-store sales by 37%, which makes 3% look flat. And it's simply not true that chain stores are uniformly blighted: Aeropostale and the Buckle's same-store sales rose 12% and 13.5% for December. If there's anyone "bucking the trend," it's those players, not Dov Charney, whose stock price is trading right now at $2.06, off a 52-week high of $13.25. (Or, I suppose, up from a 52-week low of $1.55, depending on how you look at it.)

For once, the company's financial situation is in the news, instead of its sexual sexy sexing ad campaigns or the sexifying sexual harassing antics of its founder. (Not that either of those things are likely to change — the company considers the former a key to its future growth, and maintains a $20 million insurance policy just in case the latter should happen to recur.) The American Apparel bottom line is the subject of a good, long, detailed story in Women's Wear Daily; reading it, I was reminded of Warren Buffett's quote about only finding out who's been swimming naked when the tide goes out.

American Apparel's early financial wackiness — a CEO who was prone to spending lavishly on inessentials like apartments and vibrators for favored underlings, a hamfisted, starry-eyed approach to expansion that saw 260 stores open in just a few years (for one of those years, 2005, the company did not actually find the time to replace the CFO who died of a [coincidental?] heart attack, preferring to delegate bookkeeping to young staffers), and a factory that, once it was properly managed, increased daily production from 32,000 pieces to 250,000 pieces without adding staff, all financed by a phenomenal debt load — meant that when the company went public, it could not do so via a traditional initial public offering. Instead, it was quietly bought by a shell company, Endeavour Acquisitions, run by a vaguely dodgy D.C. businessman and a financier from New Zealand, who took the company public while avoiding the scrutiny and regulatory oversight of an IPO. It was a way of buying time; things weren't going to change overnight — on the eve of the deal, a true to form Charney told a Wall Street Journal reporter the company's eventual choice for its new CFO was "a complete loser" and a real stickler for details — but the idea was American Apparel would slowly get its house in order. Then the economy as we know it more or less ended, and now WWD reports their balance sheet looks like this:

As of Sept. 30, the company had a total of $111.6 million in debt and $13.9 million in cash.

Leverage, thy name is Dov.

But the mere fact that the company's sales are not decreasing is enough to garner some praise in the current market. It has had to refinance with its two major creditors — Bank of America, which provides $75 million in revolving credit, and a private firm called SOF Investments, which loaned Charney $51 million — and agree to tougher terms including penalty fees, downgrading its credit facility by 200 basis points, and a commitment to limit capital expenditures to less than $17.8 million in 2009. (Which, for American Apparel, which likes to open stores by the baker's dozen, is some extraordinary thrift.) Technically, if it can't refinance with SOF Investments again by March 21, Bank of America's entire loan obligations will come due immediately, and, not to put too fine a point on it, if that happens there is no way they could pay up. But this is viewed as an unlikely prospect, because, in the words of retail analyst Todd Slater, "American Apparel is more valuable to them as a going concern than a bankrupt one."

If this sounds familiar to you, it might be because according to the Wall Street Journal, in 2005 — the year the chain opened 65 stores despite not having a CFO — then-primary lender U.S. Bank urged the company to seek additional financing. Unable to do so, American Apparel defaulted on its loan agreements. Because that was back when you could get a home loan with no income, no job, and no assets from a mortgage officer who was on meth, the loans were renegotiated and a new private investor was found (albeit one whose audit of the company, oopsie, uncovered American Apparel's reported growth figures for the year were off by 30%). Would the current credit market be so forgiving if the worst should happen again? I think we all know the answer to that.

American Apparel is a survivor, for now. But I don't understand why the reaction to WWD's story has been uniformly positive: 3% growth, a share price in the crapper, and tough credit terms that led one analyst to downgrade 2009 earnings per share estimate by 9 cents aren't exactly the marks of a paragon of financial health, even in this economy of lowered expectations. American Apparel more or less admits to running raunchy ad campaigns to distract customers from their admirable but irritatingly wholesome sweatshop-free American-made production; the company even pushed out employees it considered "WTO" and "so '99" in 2005 and 2006. Perhaps their sex-drenched image similarly distracts some financial reporters from maintaining perspective on the basics.

The Complicated World Of American Apparel [WWD]

Related: American Apparel Bares All [WSJ]
Ledecky's Black Check Is No Blank Slate [Washington Post]
Bucking The Trend [National Post]
Retail Winners And Losers [The Street]

Earlier: Working At American Apparel Is Not All It's Coked Up To Be