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The much ballyhooed Calvin Klein-Raf Simons marriage has ended in divorce — and now observers wonder what’s next for the iconic American fashion brand, and whether it can flourish without the “halo” of a designer collection.
As reported, the tie-up between Klein and Simons came to an abrupt — but not unexpected — end Friday night when Calvin Klein Inc. sent out a terse press release at 6:17 p.m., right before the Christmas holiday weekend, stating the company and Simons, who was chief creative officer, had “amicably decided to part ways.” The statement said that Klein has decided on a new brand direction which differs from Simons’ creative vision — but provided no details on what that new direction is.
Calvin Klein will not be having a fashion show during New York Fashion Week in February (it had been scheduled for Feb. 12 at 8 p.m.), and the company will now have to figure out how to move forward after the pricey, multimillion dollar experiment with Simons went bust after a mere 28 months, and eight months before the end of a three-year deal with the Belgian designer.
PVH Corp., parent company of Calvin Klein, invested between $60 million and $70 million in
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TAX BREAK: Despite their recent scandal in China, Domenico Dolce and Stefano Gabbana have reason to celebrate the holidays: The designers have been cleared of tax evasion charges also at a fiscal level.
While Dolce and Gabbana were acquitted in 2014 at a penal level at the end of seven years of legal troubles — which included an acquittal from charges of fraud from a judge at the preliminary hearing level in 2011, a reversal at a higher court, new charges of tax evasion and two trials at lower court — fiscally in Italy the issue was not resolved and meant they could be hit by a fine by the tax commission. Case in point, in March 2013, Italy’s tax commission fined the designers 343.4 million euros, plus interest.
The fine by the tax commission is separate from the tax evasion trials, but both stem from the same accusations put forward by Italy’s Internal Revenue Agency of omitted and unfaithful earnings declarations.
The designers were charged with alleged tax evasion totaling 416 million euros related to the 2004 sale of the Dolce & Gabbana and D&G brands to the designers’ Luxembourg-based holding company, Gado Srl. The Italian tax police reportedly considered Gado essentially a
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