When Gucci CEO Mark Lee announced he would not be renewing his contract when it expires on December 31, industry insiders suspected the formidable exec might be headed to a luxury brand. Making good on his desire to "pursue other interests and spend more time in New York City," it appears Lee is headed for the top slot at Barneys New York.
Following an October 15, 2008 report in the New York Post naming Lee as a contender for the CEO slot vacated by Howard Socol last May, The Daily has confirmed that Lee is deep in negotiations with Istithmar, the Dubai-based investment firm that purchased Barneys nearly a year ago for around $950 million. Socol reportedly left Barneys after a dispute over Istithmar's expansion strategy. According to sources, finding a suitable replacement has proven especially difficult due to the non-compete clauses found in most retail executives' contracts.
On Monday, Moody's Investors Services downgraded Barneys New York Inc.'s rating, due to its weaker-than-expected operating performance and debt protection measures, as well as consumer-confidence and retail-spending slowdowns. Considering the steep price Istitmar paid for the retailer, and the gloomy economic outlook, sources say the company needs to name someone fast--and Mark Lee is its safest bet.
Lee is credited with growing Gucci's revenues by 46 percent over the past four years. He hired Frida Giannini, largely seen as a respected designer, skilled merchandiser, and uncanny trend forecaster, in the wakes of Alessandra Facchinetti and Tom Ford. This season, Giannini bowed to Lee on the runway--just days after announcing he was stepping down.
Barneys currently operates nine Barneys New York stores and 19 Barneys Co-ops, along with several outlet stores. The retailer's next location will be in the Meatpacking District.
An announcement confirming Lee's appointment is said to be imminent.
Thankyou Ashley Baker as seen in FWD
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