New Nordstrom Announced for O.C. Nordstrom Inc. has signed a letter of intent with The Irvine Company to open a 138,000-square-foot Nordstrom store at the Fashion Island shopping center in Newport Beach, Calif., in Spring 2010. The Fashion Island Nordstrom will be the Seattle-based retailer’s sixth full-line store in Orange County. It will be located only six miles away from South Coast Plaza, which is the home of the Nordstrom store that the company says has the highest sales volume in the company’s 156-store chain. A Nordstrom representative said that the Fashion Island store will not cannibalize sales from its neighboring Nordstroms. “There’s enough business to justify us coming to Fashion Island,” said spokesperson Michael Boyd. The Fashion Island location will feature the retailer’s latest design concepts. While Orange County already is the address of many Nordstrom stores, retail analyst George Whalin said that building a new one at the high-profile Fashion Island was a good move. The wealthy consumers of Orange County do not want to all shop at the same luxury mall, he said. There is a good chance that they will embrace a new, convenient shopping choice. It might be especially popular with Newport Beach shoppers who may not want to travel to the frequently busy South Coast Plaza. Whalin is the president of Retail Management Consultants in San Marcos, Calif. Fashion Island is the home of highprofile retailers Neiman Marcus, American Rag, Macy’s and Bloomingdale’s. It ought to benefit from the addition from a new Nordstrom, said Shaheen Sadeghi, the owner of specialty shopping centers The Lab and The Camp, both located in Costa Mesa, Calif. However, he worried that Nordstrom 2 CALIFORNIA APPAREL NEWS FEBRUARY 1–7, 2008 might start losing its sense of exclusivity with each location that it builds. “Orange County demographics will support the new store,” he said. “But Nordstrom must look at the long term. It could turn out to be another Macy’s, where all of their stores are next to each other.” Nordstrom will open eight stores in 2008, six stores in 2009 and six more stores in 2010, according to Boyd. The Fashion Island Nordstrom will be constructed in the southern section of the center, across from men’s retailer Gary’s, in a space that was formerly occupied by a Macy’s women’s store that was demolished in June 2007. The Nordstrom building will be built from scratch. Construction will begin in fall of 2009, according to Keith Eyrich, president of The Irvine Company Retail Properties.—Andrew Asch Wet Seal Cuts 41 Jobs Wet Seal Inc.’s comparable-sales performance has steadily improved in the past few months, jumping from a decline of 7 percent in September 2007 to an increase of 0.6 percent in December 2007. Yet Ed Thomas, the teen retailer’s chief executive, announced that he will cut staff positions to increase profitability. On Jan. 25, Thomas said that Wet Seal will eliminate 41 jobs at the company and not fill an additional 10 vacant positions. It will also cut $1.8 million from its marketing budget. The marketing cuts will affect its print advertising campaigns. There could be more cuts coming, said Jeffrey Van Sinderen, a retail analyst for Los Angeles– based B. Riley & Co. “This is the first round,” he said. Thomas, who took the reins of the company on Sept. 6, 2007, has been making sound decisions in cutting costs, Van Sinderen said. The staff reductions are expected to result in annualized pre-tax savings of approximately $4.3 million beginning in fiscal 2008. The company expects to incur a one-time charge of approximately $400,000 in its fiscal 2007 fourth quarter related to the elimination of the 41 positions. Affected employees were provided with severance packages.—A.A. Gale Joins AI, Design School Launches New Degrees Former Brooks College Fashion Chair Mary Ann Gale has been named academic-department director for the Art Institute of <strong>California</strong>’s Orange County campus in Santa Ana, Calif. Gale brings more than 25 years of experience to the college. Since 1988, she has been COME SEE US AT DESIGNERS & AGENTS NYC the fashion-department chair at Brooks in Long Beach, where she managed designer showcases and produced the school’s annual fashion show. She also helped to develop the school’s curriculum and assisted with job placement. Prior to her career as an educator, Gale worked as a fashion illustrator with Lloyds Fashion Advertising in Los Angeles and spent five years working with buying offices in the <strong>California</strong>Mart (now <strong>California</strong> Market Center), creating buyer boards and fashion catalogs. Last June, Brooks’ parent company, Chicago-based Career Education Corp., announced it will shutter Brooks’ Long Beach and Sunnyvale campuses in phases this year and in 2009. “We conducted an extensive search to find someone that had both knowledge of the industry and experience as an educator,” said Melinda Lester, dean of academic affairs, in a statement. “Mary Ann Gale’s strong academic leadership skills and commitment to student achievement make her a valuable addition to the Art Institute.” Coinciding with Gale’s appointment is the March 31 launch of two new degree programs in fashion design and fashion marketing and management. Students who complete the design program receive a bachelor of fine arts degree, and those who complete the marketing and management program receive a bachelor of science degree. “Both fashion programs will focus on integrating the creative, technical and theoretical elements of the industry,” Gale said. “As with all programs at the Art Institute, fashion courses will be taught by educators with diverse industry experience. Gale is a member of Fashion Group International and is an affiliate of the Long Beach Arts Council, the Long Beach East Village Arts District and the Scripps Institute. Aside from fashion programs, the Art Institute of Orange County offers programs in design, culinary arts and media arts. For more information, visit www.artinstitutes. edu.—Robert McAllister Corrections and Clarifications A story about the Textile Association of Los Angeles’ inauguration luncheon in the Jan. 25 issue omitted the name of board member Henry Cherner. Cherner is the president of AIMS software. Week In Review <strong>California</strong> Frederick’s, Movie Star deal done. After more than a year, the merger between New York–based Movie Star Inc. and Los Angeles–based FOH Holdings Inc., the parent company of Frederick’s of Hollywood Inc., has been completed. The deal is a $20 million rights offering and a one-for-two reverse-stock split. As of Jan. 29, the combined company will be called Frederick’s of Hollywood Group Inc., and its stock will be traded on the American Stock Exchange under the symbol “FOH.” According to the newly merged company, the deal marries Frederick’s strong merchandising capabilities and multi-channel retail distribution with Movie Star’s well-developed sourcing capabilities. Peter Cole will lead the new company as executive chairman. Linda LoRe, president and chief executive officer of Frederick’s, and Melvyn Knigin, president and chief executive officer of Movie Star, will remain in their positions, each heading up their respective businesses. Thomas Rende, chief financial officer of Movie Star, is now chief financial officer of the combined company. According to LoRe, plans are underway to open or renovate 40 to 50 Frederick’s of Hollywood store locations within the next 36 months. In addition, the company plans to expand Frederick’s online and catalog businesses. Avery joins the iron-on wave. Brea, Calif.–based tags-and-label maker Avery Dennison Office Products Co. is jumping on the iron-on tee trend with its new Stretchable Fabric Transfers. The transfers feature Avery’s trademarked Softstretch formula, which has a softer hand than traditional transfers and allows the image to stretch with the fabric, the company said. Avery’s transfers, which work on white stretchable synthetic or synthetic-blend fabrics, are designed to work in an ink-jet printer. The company will launch the product for the consumer market at the Craft and Hobby Association’s show in Anaheim, Calif., in mid-February. Recently, several retailers offering customers a chance to create their own heat-transfer and silk-screened T-shirts have opened in Los Angeles. National Erdos joins Bluefly. New York– based e-tailer Bluefly Inc. named Barry Erdos president, chief operating officer and acting chief financial officer. Erdos, who has served on Bluefly’s board since 2005, was previously president and chief operating officer of Build-A- Bear Workshop Inc. and has held executive positions at Ann Taylor Stores Corp., Ann Taylor Inc. and J. Crew Inc. Bluefly’s current chief executive, chief operating officer and chief financial officer, Patrick Barry, is resigning after nearly 10 years with the company. He will remain with the company through a transition period. CEO out at Sears. Sears Holdings will be looking for a new chief executive officer. Its current top exec, Aylwin Lewis, is stepping down after three years in the position. Lewis joined the company shortly after it emerged from bankruptcy protection. In 2005, the company was formed when Sears Roebuck & Co. merged with Kmart. Quote of the Week The “it” bag isn’t important any more. It’s all about looking different from your neighbor.—Bloomingdale’s Women’s Fashion Director Stephanie Solomon discussing the demise of the “it” bag in The Wall Street Journal