Gary Wassner, Nick Barnhorst, Susan Scafidi, Robert Stephan Cohen, Jeff Trexler – photo by Laurel Marcus
What do Charles Worth, Coco Chanel, The Row, and Rodarte all have in common? If you can’t guess, I’ll tell you – they all had or currently have a family connection at the helm. I attended Fashion Law Institute’s “Death, Divorce, & Drama: Managing the Personal and Professional in Fashion” seminar on Tuesday night,
“Even the largest conglomerates are family businesses,” explained Professor Susan Scafidi, Founder and Director of the institute. “How do they navigate the personal and professional crossover?” What happens when things go south with a divorce or even a rupture among friends or siblings?
Seated Panel – photo by Laurel Marcus
Popular current examples are the Natalie Massenet/Erik Torstensson split. As for succession plans, there’s Giorgio Armani’s unusual and confusing will in which a portion of the company, which was kept independent during his lifetime, is to be sold to one of the fashion conglomerates of his partner’s choice, while other assets will be owned by family members.
Here to discuss these issues were panelists Gary Wassner, CEO, Hilldun Corporation; Nick Barnhorst, Vice President and General Counsel, Fresh; Robert Stephan Cohen, Senior Partner, Cohen Clair Lans Greifer & Simpson; and Jeff Trexler, Professor of Fashion Ethics, Sustainability, & Development and Director, Comic Book Legal Defense Fund. Professor Scafidi served as moderator.
Since the panelists were speaking off the record, I will not attribute quotes; however, most agreed that the best way for these fashion partnerships to work is through a divide between art and commerce. One partner is the creative, while the other handles the business end of things – left brain vs. right brain. Cited examples include Betsey Johnson & Chantal Bacon, Calvin Klein & Barry Schwartz, and Donna Karan and her late husband Stephan Weiss.
“A partner or relative relationship leads to tremendous stress, fractures, and failures,” said one panelist. “This sometimes tenuous relationship is critical to success and needs to be professionally documented and outlined.” In the case of the cosmetics brand Fresh, the founding partners, married couple Lev Glazman and Alina Roytberg, were described as presenting a unified front.
Cases such as Christie Brinkley’s divorce from Architect Peter Cook, Harvey Weinstein’s divorce from Marchesa owner Georgina Chapman, and Tory & Chris Burch’s fractious split were discussed, as well as the fashion brands Three As Four and Cushnie & Ochs – friends who had a falling out.
“Having the right contract is so critical,” said one panelist seeking to define the relationship vs the rules. There are bad contracts that can have “trap doors” or “loopholes,” making it possible for one partner to be completely cut out or to lead “down a 10-year rabbit hole of litigation.
A panelist pointed out that the human aspect is important to consider –“between the law, the business, and being a therapist, they don’t pay me enough.” Sometimes, you can even become an actual punching bag, not just metaphorically, as someone revealed when an infamous movie producer tried to take a swing at him.
Most panelists agreed that creative people are easier to deal with in these situations because “they know what they know and they also know what they don’t know.” What about the division of the intangibles? “Fashion is a very interconnected industry – how to divide the alienation of connections becomes very complicated, and how the industry and couples navigate this becomes very high school”.
“Who’s at the center of society and who gets ostracized – that’s easy in the Harvey Weinstein case,” was one remark. Professor Scafidi mentioned that Georgina Chapman and her Marchesa line were just as tarnished as Harvey, since she was resented for ostensibly knowing about his activities and doing nothing — particularly since her brand’s association is bridal and bridal adjacent. In general, they observed that “people tend to gravitate towards the money.”
What are the concluding takeaways here? “Don’t go into business with your family,” jokingly replied someone. “There should be ‘friend pre-nups – they should start marketing this,” recommended another. Quipped a third: “You know that Saks suit that you’re not sure about in the dressing room? Don’t take it home – it’s not going to get better. Make sure you spend enough time choosing.”
