Jil Sander AG
Encyclopedia
Jil Sander AG is a fashion house
founded by Ms. Jil Sander
in Germany in 1968. Its minimalist trademarks include striking silhouettes, high-end fabrics, and meticulous detail, emphasizing quality over flash. Its designs descends from that of Coco Chanel
, as opposed to the bleeding-edge esthetic of Karl Lagerfeld
and Jean-Paul Gaultier
or the trendiness of sportswear design, as exemplified by the like of Giorgio Armani
and Calvin Klein
.
, a form-fitting simple but elegant coat
or a slim blouse
made of the most luxurious materials in plain grey, black, blue or white leaving out any unnecessary details, extravagant ornaments or loud colors. The fact that her creations were coordinates which could all be easily combined with each other became a popular characteristic. She created the so-called onion look (Zwiebel-Look) layering various pieces of clothing
in one outfit. She has been described as the Queen of Less, Cashmere-Queen, Master of Minimalism, Cool Blonde, Gentle-Jil or Fashion Reductionist.
Showing her collection in Paris
in 1975 proved a complete failure, though. In the late 1970s and early 1980s, when the fashion world was dominated by lavish, garishly colorful and glitzy Dynasty
-style designs by the likes of Claude Montana
with his broad-shouldered leather look, Jil Sander's minimalist, sophisticated and strict collections, with a focus on fabric quality came close to a revolution in the fashion world and were not accepted next to the, from today's point of view, vulgar stylishness on the Parisian catwalks. Her luxurious simplicity and understated elegance only started gaining attention in the 1990s.
with a campaign
that prominently featured her own face. The internationally successful cooperation with Lancaster Cosmetics allowed her financially to run ads in glamorous magazines on a large scale for her fashion. Later, licenses would be given for eyewear and leather
accessory lines. In 1985, it was decided that her collections would be shown in Milan
to more efficiently tackle the international markets. Initially much to the regret of the German media
, the decision was the right thing to do. As a result, sales were steadily increasing. More fragrances were added to the cosmetics line, and the label's luxurious minimalism proved to be the hit of the mid to late '90s.
Jil Sander AG went public in 1989 and was sold to shareholders on the Frankfurt
stock exchange
. Jil's fashion house was among the first to venture on such a step. She used the new capital to expand in Asia
and North America
. Her tremendous success overseas resulted in palatial flagship stores
in Tokyo
, Hong Kong
, and Taipei
among many others, whose interior furnishings gobbled up millions. Ms. Sander personally oversaw the design
of her stores and strict guidelines were implemented for the sales staff on how to behave and where to stand in the boutiques. At the Paris store, opened in 1993, the Jil Sander collections could be shown on more than 9000 square feet (836.1 m²) and four floors. The space at Avenue Montaigne in Paris used to be French fashion designer Madeleine Vionnet
's atelier and showroom, one whose work is often compared to that of Sander's. In 1998 Jil Sander and German sportswear house Puma
jointly launched a successful sneakers collection.
, resulted in much praise and acclaim from the critics. Nevertheless, Jil needed a financially strong partner
realizing that her company
was steadily growning. Jil Sander AG was no longer a small privately owned business.
In 1999 Prada Group
bought a 75% share
in her company. Ms. Sander, remained creative designer and became chairwoman in the new joint venture
. Six months later, in January 2000, Ms. Sander unexpectedly left after confrontations with Prada CEO Patrizio Bertelli, a quick-tempered Italian businessman. She, an uncompromising perfectionist, refused in using cheaper materials and at bringing the traditionally slim fits in line with standard sizes. Mr. Bertelli had demanded of Jil, some very drastic cost cuts and a more affordable mainstream approach. Bertelli also insisted on giving up the contributary workshops in Germany in favor of the shops in Italy
owned by Prada
. Thus, for the first time in many years, Ms. Sander was able to indulge in extensive travelling, sailing, going to the opera
and taking care of her gardens after her resignation
but the fashion house, not surprisingly, plummeted without the designer
who defined it.
Milan Vukmirovic, a former buyer from Colette and Gucci
team designer, had been installed as Ms. Sander’s successor by Bertelli. He unsuccessfully tried to follow in her footsteps. Pressured by Prada to cater to a wider audience, Vukmirovic came up with mediocre but commercially viable sportswear collections in 2002 and 2003 that drove away longstanding Jil Sander patrons and failed to attract new customers. The company had been in the red since 2001. It was said that with rapidly sinking sales Prada Group had to go to huge expenses just to keep the house of Jil Sander going.
more than 30 years before as head designer and partner in May 2003, after her noncompete clause had expired. Supposedly, Bertelli had begged her to come back. Her sensational comeback was celebrated unanimously and with much fanfare by the international press
. Her designs, bearing the unmistakable Jil Sander signature with a more feminine look, were loved by customers and critics alike. She re-invented herself. She designed two collections that were both shown in Milan, she altered Vukmirovic’s existing sketches
for the men’s collection, she redesigned some of her boutiques and even sat down to go through the books
herself. Everyone was certain that with the spirit
of the company back in the house things would get well again. But in November 2004, Ms. Sander agreed to terminate cooperation with Prada and resigned from her post again after insurmountable differences with Mr. Bertelli.
It is rumored that it had been Bertelli’s turn to financially support the company, after Ms. Sander herself had made heavy investments, so that Jil Sander AG could be sold from Prada Group, already heavily indebted
itself as the result of Mr. Bertelli's management. But apparently the banks refused Bertelli the necessary loans. Subsequently, the glamorous Jil Sander showroom in Hamburg was closed, production was entirely moved to Italy and of more than 300 jobs only about 50 remained. All that was left in Germany in early 2006 was an office for press, distribution
and marketing
personnel, the staff at the boutiques as well as the Hamburg atelier for the women’s collection. The corporation was supposed to be transformed into a holding company
with the Italian subsidiaries taking over administrative and business duties. Prada Group still held a 98% stake in the company which generated losses of €10 million after taxes in the first half-year of 2005. The losses in 2004 had been almost €30 million.
For the time after Ms. Sander’s departure an in-house design team was formed to take care of the collections. The slim fits, so typical of Jil Sander, had meanwhile been adjusted to mainstream sizes.
, a Belgian
industrial designer who also has his own men’s label (Link) and is a professor
at Vienna
's University of Applied Arts, had become creative director for the women’s and men’s collection.
Simons' Spring/Summer 2006 men’s collection for Jil Sander was presented in Milan in late June 2005, the Fall/Winter 2006/07 collection opened Milan Fashion Week
in mid-January 2006. In the spirit of Ms. Sander and out of respect for the brand he said of the collection that he “wanted to strip it down so there was nothing that wasn't necessary” (Source: Style). Reactions by the press to the Spring/Summer show have been quite favorable. Suzy Menkes
, the principal fashion writer for the International Herald Tribune
, said that some items in the collection “made exceptional pieces” but overall it “was not as strong as” before. (Source: IHT). The Fall/Winter collection, however, received accolades from the critics (Reference: IHT).
Simons’ first women’s collection (he had never designed for women before) for the house of Jil Sander was shown at the February 2006 fashion shows in Milan
. The collection received overwhelmingly favorable reviews from the critics (Reference: The Evening Standard) and was considered "extraordinary, full of the kind of subtle details and sumptuous fabrics that will challenge the prevailing idea of luxury" (Source: LA Times).
, Change Capital Partners (CCP), for an estimated $ 120 million. Founded by Luc Vandevelde, former CEO of Marks & Spencer
and now also chairman of Carrefour
, the buyout firm CCP specializes in middle market investments mainly in the fashion industry. Prada CEO Bertelli said: "As we focus on the development of the Prada and Miu Miu brands, I am certain that Change Capital Partners will be able to provide the necessary investment to further grow the Jil Sander business." (Source: Vogue).
Raf Simons remained creative director at Jil Sander. It was said that the tremendous success of his latest women's collection for the house was the ultimate trigger for CCP to invest. (Reference: The New York Times). CCP announced to expand the brand in the future which analysts expect to break even again in 2006 with sales estimated at around € 140 million for the year.
Given the fact that private equity firms
like CCP usually keep companies they acquire for a certain period in order to sell them again later, rumors had it that Ms. Sander would buy her company back one day persist today. According to a report by German business magazine Capital from April 2006 , the highly profitable German-Italian fashion house Hugo Boss
was also interested in purchasing the Jil Sander brand, among others, in order to pursue a multi-brand strategy which they presented at their shareholder meeting
in early May 2006 (Reference: Capital), although nothing evolved from that interest.
In September 2008, the Jil Sander brand was purchased by Onward Holdings Co. Ltd, a Japanese multi-brand fashion conglomerate, and its European subsidiary GIBO Co. SpA for about US $244 mio.
Stores, 13 Freestanding Stores and 27 Shop-In-Shops. Of those, some are maintained by Jil Sander AG, others are operated under franchise agreements.
Store locations include:
Hamburg
, Düsseldorf
, Frankfurt
, Berlin
, München, Zürich
, Paris
, London
, New York
, Chicago
, Tokyo
, Taipeh, Hong Kong
, Singapore
, among others. An accessories-only store was opened in Moscow
in the end of 2007.
, a Luxembourg
entity controlled by the Jil Sander owner, Change Capital Partners. To regain full control, all remaining minority shareholders of the publicly traded Jil Sander corporation were compensated in a squeeze out
in 2006. The company went private afterwards.
For the various markets that Jil Sander AG is operating in, regional retail
and distribution
companies or subsidiaries had been created:
Jil Sander is distributed through Barneys, Bergdorf Goodman
, as well as Jeffery stores in New York and Atlanta.
Fashion House
Fashion House is an American telenovela that aired at 9 p.m. ET/8 p.m. CT Monday through Saturday on MyNetworkTV stations. The series premiered on September 5, 2006 and concluded on December 5, 2006...
founded by Ms. Jil Sander
Jil Sander
Heidemarie Jiline 'Jil' Sander is a minimalist German fashion designer and the founder of the Jil Sander fashion house....
in Germany in 1968. Its minimalist trademarks include striking silhouettes, high-end fabrics, and meticulous detail, emphasizing quality over flash. Its designs descends from that of Coco Chanel
Coco Chanel
Gabrielle Bonheur "Coco" Chanel was a pioneering French fashion designer whose modernist thought, menswear-inspired fashions, and pursuit of expensive simplicity made her an important figure in 20th-century fashion. She was the founder of one of the most famous fashion brands, Chanel...
, as opposed to the bleeding-edge esthetic of Karl Lagerfeld
Karl Lagerfeld
Karl Lagerfeld is a German fashion designer, artist and photographer based in Paris. He has collaborated on a variety of fashion and art related projects, most notably as head designer and creative director for the fashion house Chanel...
and Jean-Paul Gaultier
Jean-Paul Gaultier
Jean Paul Gaultier , born 24 April 1952 in Arcueil, Val-de-Marne, France) is a French haute couture fashion designer. Gaultier was the creative director of Hermès from 2003 to 2010. In the past, he has hosted the television series Eurotrash....
or the trendiness of sportswear design, as exemplified by the like of Giorgio Armani
Giorgio Armani
Giorgio Armani is an Italian fashion designer, particularly noted for his menswear. He is known today for his clean, tailored lines. He formed his company, Armani, in 1975, and by 2001 was acclaimed as the most successful designer to come out of Italy, with an annual turnover of $1.6 billion and a...
and Calvin Klein
Calvin Klein
Calvin Richard Klein is an American fashion designer who launched the company that would later become Calvin Klein Inc. in 1968. In addition to clothing, Klein has also given his name to a range of perfumes, watches, and jewelry....
.
The Jil Sander Look
Jil Sander's trademark look, a somewhat new look for women conquering executive positions in the 1980s, was that of a perfectly cut pantsuitPantsuit
A pantsuit or pant suit, also known as a trouser suit outside the USA, is a woman's suit of clothing consisting of trousers and a matching or coordinating coat or jacket....
, a form-fitting simple but elegant coat
Coat (clothing)
A coat is a long garment worn by both men and women, for warmth or fashion. Coats typically have long sleeves and are open down the front, closing by means of buttons, zippers, hook-and-loop fasteners, toggles, a belt, or a combination of some of these...
or a slim blouse
Blouse
A blouse is a loose-fitting upper garment that was formerly worn by workmen, peasants, artists, women and children. It is typically gathered at the waist so that it hangs loosely over the wearer's body. Today, the word most commonly refers to a woman's shirt but can also refer to a man's shirt if...
made of the most luxurious materials in plain grey, black, blue or white leaving out any unnecessary details, extravagant ornaments or loud colors. The fact that her creations were coordinates which could all be easily combined with each other became a popular characteristic. She created the so-called onion look (Zwiebel-Look) layering various pieces of clothing
Clothing
Clothing refers to any covering for the human body that is worn. The wearing of clothing is exclusively a human characteristic and is a feature of nearly all human societies...
in one outfit. She has been described as the Queen of Less, Cashmere-Queen, Master of Minimalism, Cool Blonde, Gentle-Jil or Fashion Reductionist.
Showing her collection in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
in 1975 proved a complete failure, though. In the late 1970s and early 1980s, when the fashion world was dominated by lavish, garishly colorful and glitzy Dynasty
Dynasty (TV series)
Dynasty is an American prime time television soap opera that aired on ABC from January 12, 1981 to May 11, 1989. It was created by Richard & Esther Shapiro and produced by Aaron Spelling, and revolved around the Carringtons, a wealthy oil family living in Denver, Colorado...
-style designs by the likes of Claude Montana
Claude Montana
Claude Montana is a French fashion designer. His company, The House of Montana, founded in 1979, went bankrupt in 1997.Born in Paris in 1949 to a Catalonian father and German mother, Montana began his career by designing papier-mâché jewelry covered with rhinestones...
with his broad-shouldered leather look, Jil Sander's minimalist, sophisticated and strict collections, with a focus on fabric quality came close to a revolution in the fashion world and were not accepted next to the, from today's point of view, vulgar stylishness on the Parisian catwalks. Her luxurious simplicity and understated elegance only started gaining attention in the 1990s.
Success and expansion
In the years after 1978 she revolutionized the industry by marketing her first perfumePerfume
Perfume is a mixture of fragrant essential oils and/or aroma compounds, fixatives, and solvents used to give the human body, animals, objects, and living spaces "a pleasant scent"...
with a campaign
Advertising campaign
An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication...
that prominently featured her own face. The internationally successful cooperation with Lancaster Cosmetics allowed her financially to run ads in glamorous magazines on a large scale for her fashion. Later, licenses would be given for eyewear and leather
Leather
Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattlehide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.-Forms:...
accessory lines. In 1985, it was decided that her collections would be shown in Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
to more efficiently tackle the international markets. Initially much to the regret of the German media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
, the decision was the right thing to do. As a result, sales were steadily increasing. More fragrances were added to the cosmetics line, and the label's luxurious minimalism proved to be the hit of the mid to late '90s.
Jil Sander AG went public in 1989 and was sold to shareholders on the Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
. Jil's fashion house was among the first to venture on such a step. She used the new capital to expand in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
and North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
. Her tremendous success overseas resulted in palatial flagship stores
Flagship
A flagship is a vessel used by the commanding officer of a group of naval ships, reflecting the custom of its commander, characteristically a flag officer, flying a distinguishing flag...
in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, and Taipei
Taipei
Taipei City is the capital of the Republic of China and the central city of the largest metropolitan area of Taiwan. Situated at the northern tip of the island, Taipei is located on the Tamsui River, and is about 25 km southwest of Keelung, its port on the Pacific Ocean...
among many others, whose interior furnishings gobbled up millions. Ms. Sander personally oversaw the design
Design
Design as a noun informally refers to a plan or convention for the construction of an object or a system while “to design” refers to making this plan...
of her stores and strict guidelines were implemented for the sales staff on how to behave and where to stand in the boutiques. At the Paris store, opened in 1993, the Jil Sander collections could be shown on more than 9000 square feet (836.1 m²) and four floors. The space at Avenue Montaigne in Paris used to be French fashion designer Madeleine Vionnet
Madeleine Vionnet
This article is about the haute couture designer. For the fashion label, see Vionnet Madeleine Vionnet was a French fashion designer...
's atelier and showroom, one whose work is often compared to that of Sander's. In 1998 Jil Sander and German sportswear house Puma
PUMA AG
Puma SE, officially branded as PUMA, is a major German multinational company that produces high-end athletic shoes, lifestyle footwear and other sportswear. Formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolf and Rudolf Dassler, relationships between the two brothers deteriorated until the two...
jointly launched a successful sneakers collection.
New ownership
Jil Sander's success accumulated a fortune in the mid-1990s. Her company survived the economic crisis in Asia. A newly launched men’s collection that had been postponed several times before in 1997 and was described as "precision-cut with an emphasis upon light fabrics", was largely successful. A desire with Ms. Sander to concentrate more on the creative design rather than the businessBusiness
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, resulted in much praise and acclaim from the critics. Nevertheless, Jil needed a financially strong partner
Partnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
realizing that her company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
was steadily growning. Jil Sander AG was no longer a small privately owned business.
In 1999 Prada Group
Prada
Prada S.p.A. is an Italian fashion label specializing in luxury goods for men and women , founded by Mario Prada.-Foundations:...
bought a 75% share
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
in her company. Ms. Sander, remained creative designer and became chairwoman in the new joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
. Six months later, in January 2000, Ms. Sander unexpectedly left after confrontations with Prada CEO Patrizio Bertelli, a quick-tempered Italian businessman. She, an uncompromising perfectionist, refused in using cheaper materials and at bringing the traditionally slim fits in line with standard sizes. Mr. Bertelli had demanded of Jil, some very drastic cost cuts and a more affordable mainstream approach. Bertelli also insisted on giving up the contributary workshops in Germany in favor of the shops in Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
owned by Prada
Prada
Prada S.p.A. is an Italian fashion label specializing in luxury goods for men and women , founded by Mario Prada.-Foundations:...
. Thus, for the first time in many years, Ms. Sander was able to indulge in extensive travelling, sailing, going to the opera
Opera
Opera is an art form in which singers and musicians perform a dramatic work combining text and musical score, usually in a theatrical setting. Opera incorporates many of the elements of spoken theatre, such as acting, scenery, and costumes and sometimes includes dance...
and taking care of her gardens after her resignation
Resignation
A resignation is the formal act of giving up or quitting one's office or position. It can also refer to the act of admitting defeat in a game like chess, indicated by the resigning player declaring "I resign", turning his king on its side, extending his hand, or stopping the chess clock...
but the fashion house, not surprisingly, plummeted without the designer
Designer
A designer is a person who designs. More formally, a designer is an agent that "specifies the structural properties of a design object". In practice, anyone who creates tangible or intangible objects, such as consumer products, processes, laws, games and graphics, is referred to as a...
who defined it.
Milan Vukmirovic, a former buyer from Colette and Gucci
Gucci
The House of Gucci, better known simply as Gucci , is an Italian fashion and leather goods label, part of the Gucci Group, which is owned by French company PPR...
team designer, had been installed as Ms. Sander’s successor by Bertelli. He unsuccessfully tried to follow in her footsteps. Pressured by Prada to cater to a wider audience, Vukmirovic came up with mediocre but commercially viable sportswear collections in 2002 and 2003 that drove away longstanding Jil Sander patrons and failed to attract new customers. The company had been in the red since 2001. It was said that with rapidly sinking sales Prada Group had to go to huge expenses just to keep the house of Jil Sander going.
Comeback and abandonment
To everyone’s surprise Ms. Sander, whose heart was probably bleeding when she looked at what Prada had made of her fashion house, returned to the company she had foundedEntrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
more than 30 years before as head designer and partner in May 2003, after her noncompete clause had expired. Supposedly, Bertelli had begged her to come back. Her sensational comeback was celebrated unanimously and with much fanfare by the international press
Journalism
Journalism is the practice of investigation and reporting of events, issues and trends to a broad audience in a timely fashion. Though there are many variations of journalism, the ideal is to inform the intended audience. Along with covering organizations and institutions such as government and...
. Her designs, bearing the unmistakable Jil Sander signature with a more feminine look, were loved by customers and critics alike. She re-invented herself. She designed two collections that were both shown in Milan, she altered Vukmirovic’s existing sketches
Sketch (drawing)
A sketch is a rapidly executed freehand drawing that is not usually intended as a finished work...
for the men’s collection, she redesigned some of her boutiques and even sat down to go through the books
Bookkeeping
Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually...
herself. Everyone was certain that with the spirit
Spirit
The English word spirit has many differing meanings and connotations, most of them relating to a non-corporeal substance contrasted with the material body.The spirit of a living thing usually refers to or explains its consciousness.The notions of a person's "spirit" and "soul" often also overlap,...
of the company back in the house things would get well again. But in November 2004, Ms. Sander agreed to terminate cooperation with Prada and resigned from her post again after insurmountable differences with Mr. Bertelli.
It is rumored that it had been Bertelli’s turn to financially support the company, after Ms. Sander herself had made heavy investments, so that Jil Sander AG could be sold from Prada Group, already heavily indebted
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
itself as the result of Mr. Bertelli's management. But apparently the banks refused Bertelli the necessary loans. Subsequently, the glamorous Jil Sander showroom in Hamburg was closed, production was entirely moved to Italy and of more than 300 jobs only about 50 remained. All that was left in Germany in early 2006 was an office for press, distribution
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
and marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
personnel, the staff at the boutiques as well as the Hamburg atelier for the women’s collection. The corporation was supposed to be transformed into a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
with the Italian subsidiaries taking over administrative and business duties. Prada Group still held a 98% stake in the company which generated losses of €10 million after taxes in the first half-year of 2005. The losses in 2004 had been almost €30 million.
For the time after Ms. Sander’s departure an in-house design team was formed to take care of the collections. The slim fits, so typical of Jil Sander, had meanwhile been adjusted to mainstream sizes.
Designers at Jil Sander
In May 2005, it was announced that Raf SimonsRaf Simons
Raf Simons is a Belgian fashion designer. He studied Industrial design, but after a few years of self-study, he became a menswear designer in 1995...
, a Belgian
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
industrial designer who also has his own men’s label (Link) and is a professor
Professor
A professor is a scholarly teacher; the precise meaning of the term varies by country. Literally, professor derives from Latin as a "person who professes" being usually an expert in arts or sciences; a teacher of high rank...
at Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
's University of Applied Arts, had become creative director for the women’s and men’s collection.
Simons' Spring/Summer 2006 men’s collection for Jil Sander was presented in Milan in late June 2005, the Fall/Winter 2006/07 collection opened Milan Fashion Week
Milan Fashion Week
Milan Fashion Week is a famous fashion week held semi-annually in Milan, Italy Spring/Summer event held in February - March of each year and Autumn/Winter event held in September - October of each year....
in mid-January 2006. In the spirit of Ms. Sander and out of respect for the brand he said of the collection that he “wanted to strip it down so there was nothing that wasn't necessary” (Source: Style). Reactions by the press to the Spring/Summer show have been quite favorable. Suzy Menkes
Suzy Menkes
Suzy Menkes, OBE has been head fashion reporter and Editor for the International Herald Tribune since 1988. In that time she has written over 1.7 million words in the paper....
, the principal fashion writer for the International Herald Tribune
International Herald Tribune
The International Herald Tribune is a widely read English language international newspaper. It combines the resources of its own correspondents with those of The New York Times and is printed at 38 sites throughout the world, for sale in more than 160 countries and territories...
, said that some items in the collection “made exceptional pieces” but overall it “was not as strong as” before. (Source: IHT). The Fall/Winter collection, however, received accolades from the critics (Reference: IHT).
Simons’ first women’s collection (he had never designed for women before) for the house of Jil Sander was shown at the February 2006 fashion shows in Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
. The collection received overwhelmingly favorable reviews from the critics (Reference: The Evening Standard) and was considered "extraordinary, full of the kind of subtle details and sumptuous fabrics that will challenge the prevailing idea of luxury" (Source: LA Times).
Current developments
In late February 2006, Prada Group sold Jil Sander AG to London-based British private equity firmPrivate equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
, Change Capital Partners (CCP), for an estimated $ 120 million. Founded by Luc Vandevelde, former CEO of Marks & Spencer
Marks & Spencer
Marks and Spencer plc is a British retailer headquartered in the City of Westminster, London, with over 700 stores in the United Kingdom and over 300 stores spread across more than 40 countries. It specialises in the selling of clothing and luxury food products...
and now also chairman of Carrefour
Carrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
, the buyout firm CCP specializes in middle market investments mainly in the fashion industry. Prada CEO Bertelli said: "As we focus on the development of the Prada and Miu Miu brands, I am certain that Change Capital Partners will be able to provide the necessary investment to further grow the Jil Sander business." (Source: Vogue).
Raf Simons remained creative director at Jil Sander. It was said that the tremendous success of his latest women's collection for the house was the ultimate trigger for CCP to invest. (Reference: The New York Times). CCP announced to expand the brand in the future which analysts expect to break even again in 2006 with sales estimated at around € 140 million for the year.
Given the fact that private equity firms
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
like CCP usually keep companies they acquire for a certain period in order to sell them again later, rumors had it that Ms. Sander would buy her company back one day persist today. According to a report by German business magazine Capital from April 2006 , the highly profitable German-Italian fashion house Hugo Boss
Hugo Boss
Hugo Ferdinand Boss was the founder of clothing company Hugo Boss.-Early life:Boss was born in Metzingen, Germany. After completing his apprenticeship and one year of employment, he founded his own company in Metzingen in 1923.-Support of Nazism:Boss joined the Nazi Party in 1931, two years before...
was also interested in purchasing the Jil Sander brand, among others, in order to pursue a multi-brand strategy which they presented at their shareholder meeting
Annual general meeting
An annual general meeting is a meeting that official bodies, and associations involving the public , are often required by law to hold...
in early May 2006 (Reference: Capital), although nothing evolved from that interest.
In September 2008, the Jil Sander brand was purchased by Onward Holdings Co. Ltd, a Japanese multi-brand fashion conglomerate, and its European subsidiary GIBO Co. SpA for about US $244 mio.
Jil Sander stores
As of 2005, there were 14 Jil Sander FlagshipFlagship
A flagship is a vessel used by the commanding officer of a group of naval ships, reflecting the custom of its commander, characteristically a flag officer, flying a distinguishing flag...
Stores, 13 Freestanding Stores and 27 Shop-In-Shops. Of those, some are maintained by Jil Sander AG, others are operated under franchise agreements.
Store locations include:
Hamburg
Hamburg
-History:The first historic name for the city was, according to Claudius Ptolemy's reports, Treva.But the city takes its modern name, Hamburg, from the first permanent building on the site, a castle whose construction was ordered by the Emperor Charlemagne in AD 808...
, Düsseldorf
Düsseldorf
Düsseldorf is the capital city of the German state of North Rhine-Westphalia and centre of the Rhine-Ruhr metropolitan region.Düsseldorf is an important international business and financial centre and renowned for its fashion and trade fairs. Located centrally within the European Megalopolis, the...
, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
, München, Zürich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Taipeh, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, among others. An accessories-only store was opened in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
in the end of 2007.
- New York - 1042 Madison Avenue (Opened 2007)
- New York (SoHo) - 30 Howard Street (Opening Spring, 2008)
- Manhasset - Americana Manhasset
- Moscow, Red Square, 3 (GUM)
- Chicago - 48 E. Oak Street (Opened 1994)
- Paris - 56 Avenue Montaigne (Opened 2007) (original store designed by architect Michael Gabellini opened at 52 Avenue Montaigne 1993 in the premises once occupied by the atelier of Madeleine Vionnet)
- London - Bond Street
Organisational structure
The shares of Jil Sander AG were held by Violine SARLSociété à responsabilité limitée
A Société à responsabilité limitée, also known by the acronym SARL , is a private limited liability corporate entity that exists in France, Switzerland, Luxembourg, Macau, Algeria, Morocco, Tunisia, and Lebanon and has commerce as its purpose.A SARL is a company whose liability is limited to the...
, a Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
entity controlled by the Jil Sander owner, Change Capital Partners. To regain full control, all remaining minority shareholders of the publicly traded Jil Sander corporation were compensated in a squeeze out
Squeeze out
Squeeze out is a term referring to the compulsory acquisition of the stakes of a small group of shareholders from a joint stock company by means of cash compensation.-Germany:...
in 2006. The company went private afterwards.
For the various markets that Jil Sander AG is operating in, regional retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
and distribution
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
companies or subsidiaries had been created:
- Jil Sander Holding GmbH (holding companyHolding companyA holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, subsidiarySubsidiaryA subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of Jil Sander AG ConcernConcern (business)A concern is a German type of business group. It results from the merger of several legally independent companies an economic entity under unified management. These associated companies called "Group" companies....
and majority shareholderControlling interestControlling interest in a corporation means to have control of a large enough block of voting stock shares in a company such that no one stock holder or coalition of stock holders can successfully oppose a motion...
) - Jil Sander Women's Wear GmbH (production company)
- Jil Sander Collection GmbH (operates the stores in GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
) - Jil Sander Fashion GmbH, formerly Jil Sander Arkaden GmbH (administration)
- Jil Sander S.A.S.A. (corporation)S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. It originated in Spain during the 16th century. Depending on language, the abbreviation stands for various phrases meaning anonymous society, anonymous company, anonymous partnership, or...
Swiss Branch (closed) - Jil Sander Italia S.p.AS.A. (corporation)S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. It originated in Spain during the 16th century. Depending on language, the abbreviation stands for various phrases meaning anonymous society, anonymous company, anonymous partnership, or...
- Jil Sander Paris SARLSociété à responsabilité limitéeA Société à responsabilité limitée, also known by the acronym SARL , is a private limited liability corporate entity that exists in France, Switzerland, Luxembourg, Macau, Algeria, Morocco, Tunisia, and Lebanon and has commerce as its purpose.A SARL is a company whose liability is limited to the...
- Jil Sander UK Ltd.Private company limited by sharesA private company limited by shares, usually called a private limited company , is a type of company incorporated under the laws of England and Wales, Scotland, that of certain Commonwealth countries and the Republic of Ireland...
- Jil Sander America, Inc.Incorporation (business)Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...
- Jil Sander Japan KKKabushiki kaishais a type of business defined under Japanese law.-Usage in language:Both kabushiki kaisha and the rendaku form kabushiki gaisha are used. The "K" spelling is much more common in the names of companies and in English-language legal literature, whereas the "G" pronunciation is dominant in...
Jil Sander is distributed through Barneys, Bergdorf Goodman
Bergdorf Goodman
Bergdorf Goodman is a luxury goods department store based on Fifth Avenue in Midtown Manhattan in New York City. The company was founded in 1899 by Herman Bergdorf and was later owned and managed by Edwin Goodman, and later his son Andrew Goodman....
, as well as Jeffery stores in New York and Atlanta.
Jil Sander Cosmetics
Fragrances listed by year of launch:- 1978 Jil Sander Woman
- 1980 Jil Sander Woman Pure (discontinued)
- 1981 Jil Sander Man Pure (discontinued)
- 1981 Jil Sander Bath and Beauty (W)
- 1982 Jil Sander Man
- 1983 Jil Sander Woman 2
- 1984 Jil Sander Color Pure (decorative cosmetics)
- 1985 Jil Sander Woman III
- 1988 Jil Sander Man 2
- 1989 Jil Sander Sun (W)
- 1990 Jil Sander No. 4 (W)
- 1991 Jil Sander Man 3
- 1993 Jil Sander Background (M)
- 1989 Jil Sander Feeling Man
- 1997 Jil (W)
- 1998 Jil Sander Sun Body Fragrance (W)
- 2000 Jil Sander Sensations (W)
- 2002 Jil Sander Sun (M)
- 2003 Jil Sander Woman Pure(new edition)
- 2004 Jil Sander Man Pure (new edition)
- 2004 Jil Sander Sport (W)
- 2004 Jil Sander Sport (M)
- 2006 Jil Sander Sun Delight (M)
External links
- Jil Sander (company) official website
- Photograph of Ms. Sander (once used in a perfume media campaign)
- Jil Sander men's collection Spring/Summer 2007 @ nymag.com
- Jil Sander women's collection Fall/Winter 2006/07 @ vogue.co.uk
- Jil Sander men's collection Fall/Winter 2006/07 @ style.com
- Jil Sander women autumn/winter 2006-2007 runway video @ vogue.com
Sources
- Exile's Return Slate, Oct. 13, 2003
- Infomat Who's Who: Jil Sander (last update: 1997)
- Bloomberg: Prada Sells Jil Sander February 23, 2006
- The Independent: Vandevelde snaps up Jil Sander for £68m February 24, 2006
- Jil Sander, Jenny Kupfer, Vienna