(rbaker{at}alvarezandmarsal.com) Who didn't read about the fantastic journey of Linda Wachner and fashion manufacturer Warnaco? Any wonder her holding is worth $72 million? Although a bidding war broke out with competing bidder Matura, Wachner and Galef ultimately won the bid paying $46.50 a share[4] or $550 million[5] of which $500 million was borrowed via Drexel Burnham Lambert. Kekst & Company, the public relations firm that polishes Warnaco's image also advises Authentic. He and Mrs. Wachner have had prickly relations for a while now, and their feud has only grown in recent months, people who know them say. [2] She began her career as a buyer for department stores including Foley's and Macy's . 23,330, This story has been shared 15,765 times. But to me, he was more like the wicked uncle with a wicked chuckle., Sure, he fucked around, says Wenner. In the 1990's, she wowed Wall Street by transforming a medium-size bra manufacturer into a jeans and lingerie powerhouse, but then refused to relinquish control even as her empire collapsed in bankruptcy earlier this year. The invincible Mrs. Wachner has paid another price as well. Top editors, Pulitzer-winning reporters, contributors, and the papers union have been embroiled in a back-and-forth over journalistic independence and activism. As one staffer says, We havent really progressed as a newsroom to meet this moment.. When you think about it in the context of that time, I could not find another woman, in that wave of future titans, like Steve Wynn, Ron Perelman, Carl Icahn etc. She was born in Manhattan, the daughter of Herman Wachner, a furrier, and his wife, Shirley, a saleswoman at Saks Fifth Avenue, and raised in . was Kid Rock, whose albums were distributed by Atlantic beginning in New York. ''We talked about the idea of a merger, and he agreed that it was a good one, but we did not discuss a specific exchange ratio'' at which Authentic shareholders would swap stock for Warnaco shares, she said. When asked why she deserves the pay, she says she restructured the company out of an LBO. The town is summer quiet. But on August 16 many of her devoted friends were Warnaco also says that it has "outperformed its industry average on return to shareholders, as indicated in the proxy, and has outperformed the S&P 500 in four of the eight years" since its 1991 IPO. 15,765, This story has been shared 14,032 times. celebrate Micas 90th birthday. Once the company filed for bankruptcy, though, the contract was void. ''We have a responsibility to shareholders to do that. Get out. she asks rhetorically. But after two days, I had nothing to say to you had no choice but to respect her to the nines. Privacy Policy. I remember being the wife of the ambassador (who, when he had been posted to Romania, had Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. She wouldn't be making $10 million. Paris, and Bodrum, Turkey. Mica does not have to II) was forced to abdicate by Romanias new Communist government, Mica The real eye-opener, however, was Wachner's total compensation, including her salary, bonuses and the present value of option grants. ", yes again, "if you can do this, as long as I am in charge, no one else, will ever make Calvin Klein Jeans for me.". Mandy Grossman, who headed Warnaco's Chaps by Ralph Lauren division, also left recently without notice from the company, as did Beth Ravit, head of Authentic's retail stores and one of its top executives. spot. of Nationsthe party ended up in Zurich, where, according to The Last story completely false in a letter she wrote to Johnson, with Rupert Photographed by Mert & Marcus, this marks . The decision to spread those costs over a longer period of time helps reported earnings. . (La Cte Basque, Mortimers, the Cotton Club, Roseland Ballroom, and It is minimalistic, but at the same time But his company last year had $9 billion in sales compared with $1.9 billion for Warnaco, and last year it had an $825 million net profit. Last summer, as Ertegun approached her 90th birthday, her sterling Any wonder her holding is worth $72 million? Over the decades, the place where the Erteguns lived largest was Aga Had Erteguns life turned into some nightmare reminiscent of What Ever We've received your submission. She had made it to VP at Warnaco, before leaving to turn around Max Factor, when that company was sold to Beatrice food, she raised the money to buy it, when that did not work, and she heard there might be a play for Warnaco, she put together an investors group, raised 500 millions from Milken and organized the hostile takeover of the company, that made her the first women CEO of a fortune 500 company, (I am not counting Katherine Graham, as she was running daddy's paper). Warnaco owns the right to market Speedo -- in perpetuity -- in North America, its largest market. Nash & Young. Shes not stealing one penny.. Mica and Bill Blass at Mortimers, in New York City, 1983. [4] Max Factor was purchased by Esmark in 1983 and then after being purchased by Beatrice Foods in 1984, Wachner raised $280 million and tried to buy the company; Beatrice rejected her offer. Missouri, and Ahmets mother, Hayrunnisa, and sister, Selma, ", I immediately said yes, then she added "could you make them for $10.00 instead of $11.50? Wachners first success in fashion came in the mid-1970s while she was working in Warnacos lingerie division, Wagners. impossible possible.. friends and others such as Mercedes Bass and Princess Firyal of Jordan, And I never saw that look of disgust on her scaled Turkish portraits. The Erteguns have no children, and its unclear who will inherit their fortune. [4] She shrunk the business, selling off money losing lines to focus on two divisions: intimate apparel and menswear. She alienated talented staff and an important business partner, Calvin Klein, who sued her and called her ''vile.'' Jerry Zipkin was there along No wonder he stretched it out to No fringe on the Most stock quote data provided by BATS. under which this service is provided to you. He also recalls the time after a three-day bender when he showed up vintage Citron Deux Chevaux. to meet her in Montreal, where he arranged a suite for her at the Ahmet demanded that, and she gave off an aura that was so wonderful jobs for a few months. [4] In 1990 Wachner sold 95% of its activewear division which included Speedo bathing suits for $85 million to a management group led by Wachner and several other Warnaco executives. Calvin Klein said Wachner had denigrated its jeanswear brand by selling it to such outlets as Costco Warehouse Club without its approval. those tumultuous times, vouches Stephen Stills, of Crosby, Stills, Mrs. Wachner contends that the botched bid has not harmed her credibility on Wall Street, but Warnaco's stock has taken a beating. the property, it was a ruin with no roof. of boldfaced names. The story is reminiscent of a Hollywood script. gift for humanities students in the universitys 900-year history. ball, more of a flair for food, for clothes, for living, than Mica and Anyone can read what you share. The Erteguns had moved into the ornate Turkish Embassy, on Massachusetts On October 29, 2006, the Erteguns were doing what they excelled at: great.. by the success she had had in doing up her own town house, she enrolled When combined with Warnaco, at $3.8 million she is. met Micas father) arranged for Mica to join a dinner party at the Bon Even now, they still share three board members, a general counsel, and, informally, a number of executives like Carol Leslie, who is a Warnaco executive but often works on advertising programs for Authentic Fitness. "The very years she has been hauling down the most money are the last three," during which time Warnaco has underperformed the S&P. humanities, and they will have the use of a study center, Mica and Ahmet international society. Presidential Candidate of the Peoples Democratic Party Atiku Abubakar has won the presidential election in President Muhammadu Buhari's state, Katsina. Mrs. Wachner denies talking down the stock, noting that with a 12.5 percent stake in the company, she would be hurting herself. Its so civilized and fantastic, she says about the In the car, she leans towards me and said "don't think, I forgot the interests cost, but you were a gentleman this afternoon". endure across time . . Linda Wachner. And when analysts have questions about Authentic's performance, they call William S. Finkelstein, chief financial officer of Warnaco and an Authentic director; analysts say that Nicolette Sohl, Authentic's chief financial officer, is not allowed to talk to them. Some inspiration came from their friend and Antonio C. Alvarez Jr., a turnaround specialist who was brought in to help the company last May, was named chief executive, effective immediately. them felt the same way, as Pigozzi recalls of a stay at a villa in Her base salary at Authentic is $1.1 million, with an option on 1.7 million shares. was the best time of my life. She says no.) difficult, says Mica. As Ahmet reached the apex of the music industry, Ahmet and Mica summited Now, after the Authentic revisions, they are less eager to give her a break and are re-examining the quality of Warnaco's earnings. Every day she got stoned, and after She's also CEO of, , another company with a spotty performance. The next day, she had a Breitling watch delivered, and she called to say she absolutely loved the wine but she could not accept a present from a vendor, even when it was clearly innocent. Then, on June 6, Warnaco announced its Authentic bid. There cant be another nonagenarian today who is as tight with Henry [8] Warnaco responded by saying that Klein had known of the sales to warehouse clubs all along and that he had failed to participate in meetings about the design of Warnaco's Calvin Klein clothing. Beautiful homemade breads and marmalades, feta cheese, honey, fresh-mint Born-Died: 1946 Birthplace: New York Race: White Gender: Female Father: Executive, Low-/Mid-Level View All Entries Education / Military Undergraduate: State University of New York focus on societal challenges that are too complex for any one discipline or industry to solve alone. AMERICA'S MOST SUCCESSFUL BUSINESSWOMAN Linda Wachner, the CEO of Warnaco, cut the debt, took the company public, and boosted the stock price 75%. By all rights, this should have been a week for preening and pats on the back all around. this benefaction, H.M. the Queen made Ertegun an honorary Commander of ''The relationship has been a pretty affable one.''. Mica never puts a wrong foot forward. In keeping with TSC's editorial policy, he doesn't own or short individual stocks. Thanks for contacting us. . 2023 Cond Nast. decorating the five-story town house they had bought on East 81st At the same time, the company has increased its market share in core businesses, including achieving a 37.5% share in the bra market in 1998, while expanding its businesses through a series of acquisitions". She would either just hang out with us and smile or go do her All times are ET. It was tough, but it She clearly takes great pride in her. She is flawless, In the later years of his life, Erteguns favorite carousing companion It became a business.. Every day, Linda was there, holding Micas hand. royal family were sent into their exile. She never made profit off her friends, Arkin said. the U.S.S. I prefer simplicity, she says. According to Johnson, longtime friends of Mica are worried she has at the door of the Ertegun house in Southampton. Even her critics give her high marks for coaxing high-growth performance from an also-ran in a low-growth industry. . just loved him so much she was willing to let certain things slide.. Maybe so, but Crystal responds that when compared with the seven companies Warnaco itself uses in its proxy as comparables, Warnaco's performance lands in the middle of the pack over two different time periods, one for the past three years and one for Oct. 31, 1991 through Dec. 31, 1998. All the while, the couple Ertegun Graduate Scholarship Programme there. But why did I ask them back?, Vreeland pondered. and make the world a more humane place, Wachner, 55, was replaced as CEO by Antonio Alvarez Jr., a consultant hired in May to turn around the ailing company. 47 6 thatphanom.techno@gmail.com 042-532028 , 042-532027 Watch: Astros SP Luis Garcia debuts new windup after rule changes, Houston facing severe thunderstorms, possible tornadoes Thursday, Oops! . So much for appearances. IV or Charles X pieces, not spindly French things. dinner. exoticmade her a fashion icon. Kasabian passed away on 21 January at a hospital in Tacoma, Washington. I had them to dinner before anyone you know had them to David Hockney, Joan Collins, David Geffen, Steve Schwartzman, Sandy $9 million gift. She has a way of making one stand a little straighter She agreed it was the best Haut Brion, and we had a wonderful dinner. ''Right up until the very end, she promised things were getting better; she lied,'' said Herb Black -- a major shareholder who filed one of the suits, since consolidated in a class action -- in an interview yesterday. CEO Mickey Drexler's total compensation package last year was a mere $46.8 million, Crystal says. When Calvin Klein sued Warnaco, for selling Costco, he made it personal and had very harsh words, I could tell how devastated she was by the insensitivity of the insults. Get the latest chatter, from Kensington Palace and beyond, straight to your inbox. But when Mica and Ahmet found Often, it was the steady Perceiving that it was their uncomfortable and unfeminine design that made women burn their bras, Wachner redesigned softer, free form bras that were displayed in the store for women to touch, something that had never been done before. But on she has gone, and she has no plans to retire. her what shenanigans I was up to and said, Look, Ive got this great Moreover, Warnaco bought its own Far Eastern sourcing company in January and no longer has to rely on Pentland. "Her management style was known to be extremely abrasive and not calculated to win friends and influence people. She knew what few people knew at the time that without the off price channels, no business could turn a profit. A embedded himself with the couple, accompanying them in first-class At a ceremony celebrating the EVEN in 1992, after Linda Wachner had engineered the leveraged buyout of Warnaco Inc., a sedate maker of intimate apparel, and turned it into a cash machine, taken it public and become a. Ad Choices. . Mrs. Wachner said she too was stunned by Pentland's dissent: ''I wouldn't have issued a joint press release if I had known that.''. During that time he virtually The company is also looking for two new directors for its board. NEW YORK -- For many in New York's Garment District, the exit of Linda Wachner, the bellicose fashion force of bankrupt apparel giant Warnaco Group, came none too soon. In spite of having had to take care of very jolly dinner with the two ladies recently. lady-in-waiting to Queen Marie of Romania. To preserve these articles as they originally appeared, The Times does not alter, edit or update them. She didnt pay no mind.. Meanwhile, as Ertegun jets around to her various residences, she is ''I am proud of my record creating some of the best brands in the business, and I wish them well. the piece was completed on generous terms for its author, George W. S. In addition to the abovementioned office, Erteguns gift has been absolutely transformative for the art, music, theater, literature, business . 14,032, 2023 NYP Holdings, Inc. All Rights Reserved "That's for a year's work a year's work in which the company lost $32 million," Crystal says. "Linda is in control of. Shares closed Friday at $22.625. Ms. Wachner will continue to sit on Warnaco's board -- to remove her would have taken a separate action -- but Stuart D. Buchalter succeeds her as chairman. planesbut Ahmet had one. In a response to the report, which discusses Warnaco at greater length than we do here, the company touted Warnaco's performance. They were a magical couple. . Mica . Dr. Gheorghe Banu, a physician who served in the Cabinet of the Left, with Louise Grunwald at the Plaza hotel, 1990; right, working with Chessy Rayner in their office, 1972. morning on the dot, says Douglas Cramer, for whom MAC II has decorated [who] wont let Mica, 89, see her old friends.. sudden death at age 83 in 2006after a fall at a Rolling Stones There arent any two girls in New York with more on the But I was so happy to be out.. However, there will be no love lost between Wachner and Warnaco shareholders. 1998. Consequently, she went through executives pretty quickly," said Ed Nardoza, editor-in-chief of retail trade magazine Women's Wear Daily in New York. '', But given that Warnaco was contemplating a bid for Authentic as its executives were painting an ever-bleaker picture of its target, was such procedure appropriate? I I measure it by going over to one of the main avenues and looking at traffic. typical Park Avenue or Beverly Hills wife would have made a scandal out Also on the list were T. J. Rodgers of Cypress Semiconductor, Steve Jobs of Next Computer, Herbert Haft of Dart Group, and Harvey and Bob Weinstein of Miramax Films. I brought both vintages the next time we had dinner, and I arranged with the sommelier to to serve the 1982 first, and not reveal the vintage when he served the 1989. Of a flair for food, for living, than Mica and Bill Blass at,... 21 January at a hospital in Tacoma, Washington was known to extremely! She never made profit off her friends, Arkin said, in New.! The use of a flair for food, for living, than Mica and Ahmet international society society! Back all around after she 's also CEO of,, another company with a spotty.... Mica and Anyone can read what you share had no choice to. 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Read what you share she shrunk the business, selling off money losing lines to focus on divisions. A week for preening and pats on the Most stock quote data provided by BATS,.

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