WSJ : WeWork Still Needs Cash After Officially Pulling IPO

WeWork Still Needs Cash After Officially Pulling IPO
We’s new co-CEOs ‘anticipate difficult decisions ahead’ as analyst warns company could be out of money by early 2020

For years, WeWork’s parent company was defined by big spending as it relentlessly pursued rapid growth.

Now, in the aftermath of a botched initial public offering attempt and the ouster of co-founder and chief executive Adam Neumann, it is facing a different reality: It needs to stop bleeding cash.

On Monday, We Co. said it would file a request to withdraw its initial public offering filing with the Securities and Exchange Commission. The company said it is postponing its IPO to focus on its core business and that it has “every intention to operate WeWork as a public company” but didn’t provide a time frame.

To cut costs, the new co-CEOs, Sebastian Gunningham and Artie Minson, are planning thousands of job cuts, putting extraneous businesses up for sale and purging some luxuries from the previous CEO, like the G650ER jet the company purchased for more than $60 million last year, people familiar with the matter have said.

We Co. had $2.5 billion of cash as of June 30. At its current rate of cash burn—about $700 million a quarter—it would run out of money some time after the first quarter of 2020, according to Chris Lane, an analyst at Sanford C. Bernstein & Co. He and his colleagues projected in a recent note to clients that We would burn through nearly $10 billion in cash between 2019 and 2022, assuming it keeps growing.

Messrs. Gunningham and Minson said in a joint email to staff last week that they “anticipate difficult decisions ahead.”

“As we look toward a future IPO, we will closely review all aspects of our company with the intention of strengthening our core business and improving our management and operations,” they wrote.

Further adding pressure are agreements We made in a bond offering last year, for which it must keep at least $500 million of cash, according to S&P Global Ratings, which downgraded the company’s bonds last week.

The company, which provides shared workspaces, had expected a huge infusion of cash in a public offering. But skepticism from prospective public market investors helped lead to the IPO being delayed and the subsequent replacement of Mr. Neumann with two of his former deputies, and now investors don’t foresee an IPO until next year. The company is in early talks to raise money from private investors, people familiar with those discussions have said.

The sudden desire to deploy cuts contrasts with the picture long painted by Mr. Neumann and other executives including Mr. Minson, who stressed that the company had plenty of cash and that losses were nothing to worry about.

For years, the internal mantra was that WeWork’s large losses were the result of its rapid growth. Because so much of the money was going to new locations, if We stopped growing, it could be profitable, Mr. Neumann would tell staff.

But the scale of its losses, even for a fast-growing co-working company, has perplexed rivals and others in the real estate space. Taken with the cuts, analysts say, it suggests problems extend beyond Mr. Neumann to the underlying health and strategy of the business.

“Something is wrong,” said Nori Gerardo Lietz, a lecturer on real estate and venture capital at Harvard Business School who recently published an analysis of the company. “They’re not managing their growth—they’re spending money like drunken sailors,” and their general and administrative costs are growing too fast, she said.

Ms. Lietz said the disclosures in We’s IPO prospectus don’t adequately explain the root problems behind the large losses, which totaled more than $1.6 billion in 2018.

A danger for We in cutting costs is that the moves would slow its growth rates. The company has doubled its revenue most every year—a quality it long hoped investors would focus on. With slower growth, investors say they would need to see a clear road to profitability.

No matter the growth rate, the business is expected to need lots of cash to build out its offices. We reported spending $1.3 billion in net capital costs in 2018—only a portion of which shows up in the company’s official losses because those costs are accounted for over many years.

Without more disclosure from We or its co-working rivals, many of which are private, it is difficult to make exact comparisons with other firms and their profitability.

Still, history shows that some comparable companies were losing far less despite strong growth. In 1998 and 1999, competitor IWG PLC—then known as Regus—positioned itself as a breakout company remaking the office market with its short-term leases and services for tenants. But even with its revenue doubling in 1999, it lost £17.9 million, or 16% of revenue.

In comparison, WE’s 2018 loss of $1.6 billion was on revenue of $1.8 billion.

The largest serviced-office company in the U.S. at the time, HQ Global Holdings, grew even faster between 1999 and 2000. Revenue more than doubled to $455 million, on which it posted losses of $20.5 million. Both IWG and HQ Global had a similar basic model, but also made money charging for add-ons like phones and printers. IWG acquired HQ Global in 2004.

Bus Of Fash. : A New Game Could Be Fashion's Farmville. Will People Pay to Play

A New Game Could Be Fashion's Farmville. Will People Pay to Play?
Former Harpers Bazaar UK Editor-in-Chief Lucy Yeomans is behind Drest, a new fashion styling game. She's betting access to Farfetch's selection and sponsored challenges from Gucci will convince users to pay for virtual goods.

NEW YORK, United States — A decade ago, if you had told fashion industry veteran Lucy Yeomans she would become a gamer, she would have laughed.
Yeomans spent 12 years as the editor-in-chief of Harper’s Bazaar UK, and was also the founding editor-in-chief of Porter, Net-a-Porter’s editorial arm, which she ran for seven years. The overlap between her readership and video game enthusiasts was likely small.
But like countless others, Yeomans stumbled upon Farmville a few years ago. And while she was weeding virtual strawberry farms and caring for digital cattle, Yeomans began to ruminate on the idea of a game that could give users a similarly addictive window into the insular world of high fashion.
“I had access to the top photographers, models, and locations ... but most people don’t get such a close look into fashion,” Yeomans said. “I thought a lot about how I could bring these elements to an audience, and allow them to create their own content.”
Her mobile fashion game, Drest, launches October 8. Users are presented with the goal of becoming a top fashion stylist via challenges like dressing clients for the Met Ball or styling the nonagenarian Iris Apfel for a fashion shoot. Finished looks are submitted to a community homepage, where users can rate them. The best receive virtual prizes.

Drest is free to download, but microtransactions are built into the game. Users start with a virtual budget of $15,000 “Drest dollars” that they can spend on clothes, makeup and accessories. Each additional $5,000 bundle costs $3.99.
To sweeten the pot, Drest partnered with Farfetch, digitising the e-commerce company’s inventory for in-game clothing. Users can also purchase real-life versions of the product from Farfetch within the app. Gucci is also sponsoring challenges that feature its products. Both Gucci and Farfetch declined to comment for this story.
It’s a model pioneered by Farmville, which has generated hundreds of millions of dollars for its creator, Zynga and spawned countless imitators. In the fashion world, players can pay to update their virtual wardrobe in order to climb the show-business ranks in the Kim Kardashian: Hollywood game, launched in 2014 by Glu Mobile. In 2016, Glu acquired Covet Fashion, which, much like Drest, offers users fashion challenges. Lovelooks, a fashion game that launched last year, lets users dress paper dolls up and earn points they can cash out for real items, including Glossier products.
Drest is launching at a time when the gaming industry is exploding. Video game revenue is estimated to hit $152 billion by the end of this year, with mobile gaming making up $68.5 billion of that total, according to Newzoo, a gaming and e-sports market research firm. Nearly 2.4 billion people will play mobile games this year, according to Newzoo.

And although historically, gaming culture has been dominated by men, women have become a rising demographic in the space. Sixty-five percent of women in the US played mobile games, according to a 2017 survey from Google Play.
But the market for fashion-themed mobile games is far smaller, said Wedbush analyst Michael Pachter. He estimates that Kim Kardashian: Hollywood and Covet Fashion earn revenue of about $30 million and $60 million annually.
“Women are an underserved niche [in gaming], so there is an opportunity to market to the passionate readers of fashion magazines,” he said. “But I’m not sure we need another fashion game. I doubt this could hit Candy Crush-level success. The demand isn’t the same.”
Women are an underserved niche [in gaming], so there is an opportunity to market to the passionate readers of fashion magazines.
The worlds of fashion and gaming have been colliding for some time now. Players of Fortnite, from Epic Games, reportedly spend $300 million a month on “skins” that change their in-game appearance. Nike made sneakers in May specifically to be “worn” by Fortnite players. In September, Louis Vuitton partnered with Riot Games to debut skins for League of Legends, plus a branded trophy case for winners of the game’s world championship.
“There’s been tremendous growth in the space and a lot of it is driven by the accessibility from mobile,” said Mark van Ryswyk, the executive vice president at Glu Mobile. “There’s actually an opportunity to bring more aspirational experiences to gaming.”
Brands see gaming as a way to market to millennials and Gen Z shoppers, who may not be able to afford designer products, but can buy their virtual equivalent.
Badgley Mishka is one of about 150 brands that has partnered with Covet Fashion. The game is now the third-largest driver of traffic to the brand’s site, said Christine Currence, Badgley Mischka’s president.
“Even if it isn’t directly driving sales, Covet is helping us build brand awareness and giving us a chance to engage with consumers in a new way,” she said.
Yeomans said there’s a greater overlap between fashion and gaming than at first glance.

“Fashion and gaming are both about escapism,” she said. “They are about adopting a fantasy version of yourself. And the narrative in fashion is so compelling. Who needs guns and ammo when you can put on a Chanel jacket and Manolos. Those pieces are empowering.”
Who needs guns and ammo when you can put on a Chanel jacket and Manolos. Those pieces are empowering.
Drest, which has a team of 75, has a private investor, Graham Edwards, the founder of commercial real estate company Telereal Trillium. Edwards introduced Yeomans to Drest’s now-Chief Operating Officer Vivion Cox, who has a background in building tech platforms for startups.
Drest is launching with a waitlist and will open up the game to a mass audience in 2020, once it has built a core user base. It will also add digital avatar versions of famous models and influencers.
The hardest part of building a successful mobile game, said Pachter, is creating a thriving in-game economy that meets the needs of users willing to spend real cash and those who want to play for free.
“It’s a hard balance between making everything available for someone who doesn’t want to spend money, and also appealing to the person who has more money than time and would rather spend than burn hours playing,” Pachter said.
The microtransaction model is also coming under scrutiny, with critics warning of a “compulsion loop,” where games push users to play more — and pay more — in order to obtain rewards. A UK government committee released a report in September declaring that mobile gaming should be regulated, arguing that loot boxes — randomised in-game rewards doled out for playing a certain amount of time, or for a small fee — are forms of gambling. In the US, Sen. Maggie Hassan (D-NH) has pushed regulators to investigate if children are in danger of being exposed to entry-level gambling with loot boxes.
Wedbush’s Pachter believes Yeomans’ connections to the fashion world could help the game build a new model of gaming revenue. Having Gucci or Farfetch market the game could also expose Drest to newer users, Pachter added.
“A lot of gaming companies have tried to put a foot in the fashion world, but it hasn't worked,” Cox said. “This game, though, has been built by a hybrid team of gaming and tech, and it also comes from fashion’s very own. Lucy has a track record of creating beautiful things the world of fashion enjoys.”

Bus. Of Fashion : Introducing the #BoF500 Class of 2019


The Business of Fashion is proud to present the 2019 edition of the BoF 500 in partnership with JHSF.
LONDON, United Kingdom — In compiling the first edition of the BoF 500 in 2013, we canvassed friends from the BoF community around the world, asking them: Whom do you respect? Who is making a difference in your region or country? Who has the potential to be impactful on a global scale? Who is genuinely pushing the industry forward? By the end of this process, we had more than 2,000 names to consider. We began months of intensive research and analysis in order to whittle this group down to a truly inspiring group of fashion industry shapers: the BoF 500.
From blue-chip business titans who helm the industry’s mega-brands to daring young upstarts whose fashion stars are fast rising; from disruptive entrepreneurs building the next wave of $1 billion start-ups to opinion leaders whose points of view attract global followers; from discreet, behind-the-scenes catalysts who spot the industry’s top talents to innovative retailers connecting with consumers in new channels, the BoF 500 invites each of these exceptional talents to join our community, giving them the recognition they deserve and a chance to connect with each other, all around the world — in New York, London, Paris and Milan, but also in São Paulo, Mumbai, Beijing and beyond.
Now in its seventh year, our core vision for the BoF 500 has not changed. Each year since 2013, we have been sourcing and discovering new names to add to our community of people shaping the global fashion industry based on nominations from existing BoF 500 members. This community — with members represented more than 70 nationalities and based in more than 45 countries — has been an invaluable resource for the BoF team as we sift through hundreds of nominees and conduct research to make sure we are getting a complete picture.
But with the unveiling of this year’s BoF500, we are introducing one important change. Instead of removing names each year to make room for new talents, going forward we will add 100 new members to the BoF 500 each cycle, resulting in a community that grows stronger and more meaningful over time.
Existing BoF 500 members Adut Akech and Pierpaolo Piccioli were joined by new members Chika Oranika and Dapper Dan as cover stars of this year's special print edition, exclusively for BoF Professional members. This year's BoF 500 class also includes Teen Vogue's Lindsay Peoples Wagner, model Nathan Westling, entrepreneur Josh Luber, designer Kerby Jean-Raymond and many more fascinating industry shapers from around the world.

And as always, we continue to recognise those who have demonstrated sustained achievement over the course of their careers — making exceptional contributions to our community, our industry and the wider world — by inducting them into the BoF 500 Hall of Fame. This year's inductees into the Hall of Fame include Marco Bizzarri, Angelica Cheung, Michael Burke, Adrian Joffe, François-Henri Pinault, Nadja Swarvoski and 14 other industry titans.
We hope you will enjoy discovering this year’s new class of industry shapers. As you will surely see, no other sector has a cast of characters as passionate, diverse and interesting as those who drive the business of fashion.


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Aaron Philip
MODEL
2019
Since her modelling career kicked off in 2018, Philip has become a force for representation as the first black trans disabled woman to be signed by a major agency.

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Adesuwa Aighewi
MODEL & ACTIVIST
2019
With a breakthrough year behind her, scoring campaigns for the likes of Chanel and Marc Jacobs beauty, the-model-turned-creative director is now seeing through her personal mission to promote the beauty of African culture.

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Aizel Trudel
FOUNDER & CHIEF EXECUTIVE, AIZEL
2019
The retailer launched her eponymous boutique at the age of 25 and developed it into one of Russia’s first online marketplaces for fashion and luxury goods.

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Alexandra Van Houtte
FOUNDER & CHIEF EXECUTIVE, TAGWALK
2019
The stylist turned her frustrations with fashion’s outdated moodboard systems into a game-changing start-up.

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Alton Mason
MODEL
2019
From dancing at the VMAs to becoming the first black male model to walk for Chanel, the Jamaican-Ghanaian model has been making waves ever since he was scouted on Instagram in 2015.

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Andrey Artyomov
DESIGNER, WOS
2019
He is lauded as one of Russia’s most creative talents of recent years, with his brand taking the flashy aesthetics of post-Soviet culture and reforming them with modern tailoring.

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Avinash & Kabir Wadhwani
CO-FOUNDERS & CHIEF EXECUTIVES, TEMPLE MUSE
2019
The brothers have made it their mission to provide a space for luxury and deliver African design talent to the international market.

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Bethany Williams
DESIGNER, BETHANY WILLIAMS
2019
The young menswear designer is using fashion as a force for good, outlining the blueprint of a 100-percent sustainable fashion business.

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Betty Irabor
FOUNDER & PUBLISHER, GENEVIEVE
2019
The media mogul, philanthropist and author founded Genevieve magazine, one of the leading lifestyle, fashion and beauty titles in her native Nigeria.

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Brendan Babenzien & Estelle Bailey-Babenzien
DESIGNERS, NOAH
2019
The former Supreme design director and his wife founded the label Noah to combine their talents for clothing and interior design, while emphasising the importance of sustainable products and practices.

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Cai Jinqing
PRESIDENT OF KERING GREATER CHINA, KERING
2019
The seasoned PR executive has turned her strategic know-how to one of the world’s biggest luxury groups in one of the world’s biggest luxury markets.

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Celine Dion
SINGER
2019
In addition to her decades-long career in the music industry, the singer's avid love of couture and outrageous outfits have made her an unexpected icon of fashion week street style.

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Chika
RAPPER
2019
Since her video calling out Kanye West’s politics went viral in 2018, the buzzed-about rapper artist has used her creative platform to reiterate the socio-cultural origins of hip-hop, and starred in an ad campaign for Calvin Klein.

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Chris McGuigan
FOUNDER, MINI TITLE
2019
The director of the Mini Title Agency has made it his mission to support up-and-coming creative talent with a highly sought-after roster of photographers.

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Christiaan Ashworth & John Parker
CO-FOUNDERS, END
2019
Early pioneers in the luxury streetwear space, the co-founders have cemented their positions as key players in London’s coveted streetwear scene.

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Cody Chandler
FOUNDER, NEW PANDEMICS
2019
The casting director has put LGBTQ+ visibility at the heart of his work with his agency that solely represents talent from the LGBTQ+ community.

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Daniel Lee
CREATIVE DIRECTOR, BOTTEGA VENETA
2019
Tasked by Kering with reviving the Italian brand, his debut collection was hailed by buyers and customers alike and he introduced a successful line of accessories modernising the house’s Intrecciato technique.

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Daniel Roseberry
ARTISTIC DIRECTOR, SCHIAPARELLI
2019
Tasked with reviving the near-century-old couture house, his debut collection was hailed by critics as an exciting and fearless ode to the house’s codes of innovation and irreverence.

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Dapper Dan
DESIGNER
2019
The underground Harlem couturier of the 1980s returned to prominence after a cultural appropriation scandal led Gucci to finance the rebirth of his business.

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David Schulte
PRESIDENT, THE ROW
2019
The former Oliver Peoples executive was appointed president of The Row in 2016, and continues to lead the luxury label’s global expansion.

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Deepika Padukone
ACTRESS
2019
One of the highest-paid actors in Bollywood was featured on the April cover of American Vogue and has become a red carpet mainstay by mixing Parisian haute couture labels with homegrown Indian designers.

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Dominique Oliver
FOUNDER & CHIEF EXECUTIVE, AMARO
2019
The financial analyst-turned-entrepreneur founded one of Brazil’s biggest fashion retail success stories with his direct-to-consumer brand Amaro.

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Dr Gregory Altman & Dr Rebecca Lacouture
CO-FOUNDERS, EVOLVED BY NATURE
2019
The co-founders are pioneering research into natural silk alternatives and received investment from Chanel.

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Edward Crutchley
DESIGNER, EDWARD CRUTCHLEY
2019
The double Woolmark Prize-winning designer’s unique approach to luxe fabrics and thoughtful tailoring has made him a fast favourite in London’s menswear calendar.

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Elza Wandler
DESIGNER, WANDLER
2019
Starting her own company from scratch, the Dutch designer has established the image of 2019’s it-bag and expanded into footwear.

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Emily Adams Bode
DESIGNER, BODE
2019
The first female designer to show at NYFW Men’s, her use of thrifted materials evokes a unique nostalgia that has caught the industry’s eye and scored her a spot at Paris Fashion Week.

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Emma Grede & Khloé Kardashian
CO-FOUNDERS, GOOD AMERICAN
2019
The inclusive fashion brand established by the serial entrepreneurs brought in $1 million on the first day of its launch campaign and has built inclusivity into its ethos, carrying sizes 00 through to 24.

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Ferdinando Verderi
CREATIVE DIRECTOR, VOGUE ITALIA
2019
The recently appointed creative director of Vogue Italia, known for his innovative and modern approach to fashion communication, revealed his first issue for the title in July 2019.

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Gary Gill
HAIRSTYLIST
2019
The hairstylist’s work can be seen in the pages of Vogue, i-D and AnOther, and he has led shows and campaigns for Balenciaga, Fendi and Loewe.

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Geoffroy van Raemdonck
CHIEF EXECUTIVE, NEIMAN MARCUS
2019
The seasoned executive is working to overhaul the long-struggling luxury retail group by doubling down on in-store experience and shaking up its portfolio with a minority investment in reseller Fashionphile.

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HRH The Duchess of Sussex
DUCHESS
2019
From marrying Prince Harry in a Givenchy-designed gown to guest-editing British Vogue, the American-born former actress has become a fashion icon and advocate for change the world over.

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Holli Smith
HAIRSTYLIST
2019
The seasoned hairstylist has turned the male-dominated profession on its head with her rave scene-inspired, queer-centric aesthetic.

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Indya Moore
MODEL
2019
The accomplished model and ‘Pose’ star has used their visibility to foreground the crucial issue of transgender rights.

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Jane Wang
GENERAL MANAGER, ERDOS GROUP
2019
From the vast, goat-populated plains of Inner Mongolia, the 'cashmere princess' is spinning a winning formula of handcrafted luxury knitwear and strategic business savvy.

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Jeenu Mahadevan
MODEL
2019
Having walked the runway for the likes of Givenchy, Versace and Fendi, he joins only a few models of South Asian origin to break into modelling and has been outspoken about colourism in the industry.

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Jerry Lorenzo
FOUNDER, FEAR OF GOD
2019
The fashion and sneaker designer’s unique blend of sportswear with grunge solidified his streetwear stronghold, attracting the likes of Kanye West, Beyoncé and Justin Bieber.

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Jillian Mercado
MODEL
2019
The wheelchair-bound model has appeared on the cover of Teen Vogue and is an advocate for equal access and representation in the industry.

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Jimin
SINGER
2019
The lead vocalist of the ubiquitous K-pop group BTS has drawn the attention of Puma and Dior, marking the house’s first venture into men’s stagewear for a pop band.

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Jisoo
SINGER
2019
The lead singer of K-pop girl group Blackpink, which has worked with Louis Vuitton and Dior Cosmetics for the band’s endorsement deals, is also a front row favourite.

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Johnny Dufort
PHOTOGRAPHER
2019
The British photographer’s bleached and digitally manipulated aesthetic has quickly become a new fashion favourite among the likes of Vogue, Gucci and Louis Vuitton.

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Josh Luber
CO-FOUNDER, STOCKX
2019
The entrepreneur switched stocks for shoes, building the world’s first sneaker stock market which was valued at $1 billion this year.

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Kaoru Imajo
DIRECTOR, JAPAN FASHION WEEK ORGANIZATION
2019
He is championing a global outlook for Rakuten Fashion Week Tokyo’s capital attraction.

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Kenneth Ize
DESIGNER, KENNETH IZE
2019
The Lagos-born designer and LVMH Prize finalist is reinterpreting traditional West African fabrics and Nigerian craft through his eponymous label.

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Kerby Jean-Raymond
FOUNDER & CREATIVE DIRECTOR, PYER MOSS
2019
The Haitian-American designer’s brand engages with the past, present and future of the black American experience through personal storytelling and provocative showmanship.

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Kim So-hee
FOUNDER & CHIEF EXECUTIVE, NANDA
2019
The eBay reseller-turned-fashion entrepreneur has made Korean fashion and beauty a global export with her labels Nanda and 3CE.

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Leslie Zhang
PHOTOGRAPHER
2019
The newcomer’s photography talent is quickly redefining Chinese fashion photography and was recognised by China’s Dazed, Harper’s Bazaar and GQ titles.

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Li Edelkoort
TREND FORECASTER
2019
The Dutch trend forecaster and dean of hybrid studies at Parsons advises fashion companies and brands around the world on their business and sustainability practices.

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Li Rixue
FOUNDER & CHIEF EXECUTIVE, SECOO
2019
The executive heads up one of China’s largest luxury e-commerce platforms, which boasts a customer base of 27 million people.

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Lindsay Peoples Wagner
EDITOR-IN-CHIEF, TEEN VOGUE
2019
One of the youngest and only prominent black editors in the industry, she has maintained a strong focus on issues of race, politics and inclusive representation throughout her career in fashion media.

NEW
Lizzo
SINGER & RAPPER
2019
The musician is an advocate for body positivity and self-love, making diversity the focus of her music, drawing the support of Marc Jacobs and scoring an Elle magazine cover.

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Lolita Jacobs & Jean-Baptiste Talbourdet-Napoleone
CO-FOUNDERS, JACOBS + TALBOURDET-NAPOLEONE
2019
Since founding their namesake creative agency in 2016, the married couple have applied their artistic and strategic know-how to brands such as Zara, Lacoste and Nina Ricci.

NEW
Lorenzo Bertelli
HEAD OF MARKETING & COMMUNICATIONS, PRADA GROUP
2019
Scion of the Prada dynasty, he moved from race car driver to head of marketing and communications, and is tasked with improving Prada Group’s digital strategy and sustainability cred.

NEW
Ludovic de Saint Sernin
FOUNDER & CREATIVE DIRECTOR, LUDOVIC DE SAINT SERNIN
2019
Known for his signature lace-up leather brief, the former Balmain embellishment expert launched his label in 2017 and has captured industry attention for his exploration of sex and sexuality through clothing.

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Luke & Lucie Meier
CREATIVE DIRECTORS, JIL SANDER
2019
The husband-and-wife duo have reinvigorated the house through sharp and precise collections infused with touches of craft and femininity.

NEW
Maluma
SINGER-SONGWRITER
2019
The Colombian reggaetón star with more than 45 million Instagram followers has made a bold foray into the global fashion world with his experimental style, striking a partnership with Dsquared2 along the way.

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Mark Metrick
PRESIDENT, SAKS FIFTH AVENUE
2019
The company president is repositioning the luxury department store chain with a renovation of its flagship 5th Avenue store and investments in its image through events and collaborations with the likes of Off-White and Versace.

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Michael Mente & Mike Karanikolas
CO-FOUNDERS & CHIEF EXECUTIVES, REVOLVE
2019
The duo leveraged consumer analytics and influencer marketing to elevate an unknown e-tailer into a billion-dollar company that went public in 2019.

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Mike Amiri
DESIGNER, AMIRI
2019
Fusing Californian nostalgia with streetwear, he has sold the rock ‘n’ roll aesthetic and expanded his namesake label into a luxury brand with over $40 million in sales, and recent investment from Renzo Rosso’s OTB.

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Miranda Qu
FOUNDER, XIAOHONGSHU
2019
The entrepreneur founded Xiaohongshu, which has become China's most popular social e-commerce app for beauty, fashion, lifestyle and travel, achieving a valuation of over $3 billion in just six years.

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Mona Tougaard
MODEL
2019
The Danish model with Somalian, Ethiopian and Turkish heritage has walked for the likes of Louis Vuitton and Chanel.

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Nadine Ijewere
PHOTOGRAPHER
2019
Inspired by her Jamaican and Nigerian heritage, the photographer focuses on the subjects of identity and diversity, capturing the attention of British Vogue, i-D and WSJ Magazine.

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Naomi Watanabe
ACTRESS & COMEDIAN
2019
The Japanese comedian uses her comedy, confidence and size-inclusive fashion line to fight fat shaming and promote body positivity.

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Nathan Westling
MODEL
2019
Having fronted campaigns for Louis Vuitton and Versace before undergoing hormone therapy, the transgender male model has made a return to fashion with various covers and fashion shows.

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Nick Brown
MANAGING PARTNER, IMAGINARY
2019
He co-founded a venture capital firm that has backed some of the hottest start-ups in fashion’s direct-to-consumer space.

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Nicolaj & Ditte Reffstrup
CEO & CREATIVE DIRECTOR, GANNI
2019
The husband-and-wife team behind one of Denmark’s hottest brands has redefined sustainable fashion and helped put Copenhagen on the map.

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Nkosiyati Khumalo
EDITOR-IN-CHIEF, GQ SOUTH AFRICA
2019
The first black editor of a major menswear magazine in South Africa is pushing the boundaries of men's style across the African continent and enriching the region's increasingly diverse media landscape.

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Noel Stewart
MILLINER
2019
A former assistant of Stephen Jones OBE, the British milliner has collaborated with the likes of Mulberry, Erdem and JW Anderson.

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Patrick Herning
CO-FOUNDER, 11 HONORÉ
2019
The former marketing executive founded the plus-size luxury e-commerce platform addressing the underserved luxury fashion audience sized 14 and above.

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Peggy Gou
DJ & DESIGNER, KIRIN
2019
The South Korean DJ’s swift rise to fame through her bold sound and equally bold style caught the New Guard Group’s attention with the launch of her label Kirin.

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Peter Saville
ART DIRECTOR
2019
The artist behind infamous record covers has created some of fashion’s most celebrated logos, playing a key role in Burberry’s new brand identity, launched in 2018.

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Polina Veksler & Alex Waldman
CO-FOUNDERS, UNIVERSAL STANDARD
2019
Their size-inclusive brand is realising its eponymous mission to set a new standard for modern fashion tailoring.

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Rebecca Longendyke
MODEL
2019
The breakout 23-year-old star walked over 40 shows in Spring/Summer 2019 and has graced the covers of i-D, WSJ Magazine, German and Japanese Vogue.

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Robbie Spencer
CREATIVE DIRECTOR, DAZED
2019
The stylist and creative director is one of the industry’s most influential talents, known for his striking editorial imagery and diverse cultural references.

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Rok Hwang
DESIGNER, ROKH
2019
The Korean designer cut his teeth at Phoebe Philo’s Céline and freelanced at Louis Vuitton and Chloé, before launching his womenswear label that has attracted over 120 global stockists.

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Samuel Ellis Scheinman
CASTING DIRECTOR
2019
The casting director behind Rihanna’s Fenty campaign presents a fresh, diverse take on model representation.

NEW
Sanjeev Bahl
FOUNDER & CHIEF EXECUTIVE, SAITEX
2019
The founder of the world’s most sustainable large-scale denim producer is a champion for building eco-conscious business models from the ground up.

NEW
Sebastien Kopp & François-Ghislain Morillion
CO-FOUNDERS, VEJA
2019
The childhood friends left their careers in finance to grow the global sustainable shoe brand without financial investment, manufacturing more than 1 million pairs of shoes in 2018.

NEW
Shanelle Nyasiase
MODEL
2019
The South Sudanese newcomer model has quickly risen to star status on Models.com’s Top 50 list and embraced by the likes of Gucci, Givenchy and Loewe.

NEW
Sharna Osborne
PHOTOGRAPHER
2019
The photographer and filmmaker has turned fashion imagery on its head with her signature use of lo-fi aesthetics inspired by the 1990s and 2000s.

NEW
Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani
CO-CHAIR, FASHION TRUST ARABIA
2019
One of the world’s most prolific patrons of the arts has turned her attention to supporting fashion design talent emerging from the Middle East and North Africa.

NEW
Shelley, Caryn & Lori Hirshleifer
CO-CHIEF EXECUTIVES, HIRSHLEIFERS
2019
The Hirshleifer sisters are ensuring the family-run retail business maintains its 100-year old status as a global luxury mecca, putting it on track to reach $100 million in sales.

NEW
Simon Beckerman & Maria Raga
FOUNDER & CHIEF EXECUTIVE, DEPOP
2019
Under their leadership, Depop has established itself not only as a successful peer-to-peer clothing resale app, but also a cultural force for trend creation and young creativity.

NEW
Sofia Tchkonia
FOUNDER, MERCEDES BENZ FASHION WEEK TBILISI
2019
The one-woman force behind the Georgian event has turned Mercedes Benz Fashion Week Tbilisi into a hot ticket attended by an international contingent of buyers and press.

NEW
Sophie Fontanel
JOURNALIST
2019
The accomplished writer, columnist and fashion critic has defied ageist preconceptions of influence with her formidable social media presence and following.

NEW
Stephanie Thomas
FOUNDER, CUR8ABLE
2019
The fashion journalist and stylist has dedicated herself to facilitating the fashion system’s awareness of disability dressing for over 20 years.

NEW
Sterling Ruby
ARTIST & DESIGNER, S. R. STUDIO. LA. CA.
2019
The renowned contemporary artist and Raf Simons collaborator has ventured into fashion design, turning his personal acid-wash studiowear into a four-category collection.

NEW
Séverine Merle
CHIEF EXECUTIVE, CELINE
2019
The executive oversaw Hedi Slimane’s rebrand of the label and introduction of menswear and perfumes, aiming to turn it into a billion-dollar brand.

NEW
Tomo Koizumi
DESIGNER, TOMO KOIZUMI
2019
The Japanese designer was the breakout star at the Autumn/Winter 2019 shows in New York, supported by the likes of Katie Grand and Marc Jacobs.

NEW
Travis Scott
RAPPER & SINGER
2019
The Platinum-certified artist has become an influential youth culture style figure, mixing high-fashion labels with streetwear brands.

NEW
Ugbad Abdi
MODEL
2019
The breakout star joins the new generation of hijabi models furthering the diversity conversation on and off the runway.

NEW
Veronica Swanson Beard & Veronica Miele Beard
DESIGNERS, VERONICA BEARD
2019
The American design duo is building one of the industry’s top-performing contemporary labels after the popularity of the brand’s single-button blazer.

NEW
Virginie Viard
ARTISTIC DIRECTOR OF FASHION COLLECTIONS, CHANEL
2019
Starting as an intern in 1987, the designer now oversees the house’s artistic direction as the chosen successor of Karl Lagerfeld, who referred to her as ‘my right arm and my left arm.’

NEW
Wang Junkai, Wang Yuan & Yi Yangqianxi
SINGERS & ACTORS, TFBOYS
2019
China’s hottest boyband TFBoys has dominated China’s music charts while scoring partnerships with the likes of Bottega Veneta and Adidas.

NEW
Wes Gordon
CREATIVE DIRECTOR, CAROLINA HERRERA
2019
The American designer has balanced Carolina Herrera’s bold, unmistakable brand DNA with contemporary motifs as he brings a modernising touch to the heritage label.

NEW
Will Welch
EDITOR-IN-CHIEF, AMERICAN GQ
2019
He is ushering in a ‘new era’ of GQ, reflecting the new fashion-forward menswear boom and replacing suited movie stars with modern style icons.

NEW
Yeli Gu
FOUNDER, ONTIMESHOW
2019
The founder of one of China’s biggest fashion trade shows has put Shanghai and its designers on the map.

NEW
Yoon-Soo (Gene) Yoon
CHAIRMAN, FILA
2019
The savvy businessman revived Fila and stands behind one of Gen-Z’s favourite sneakers of the decade.

NEW
Yoshikazu Yamagata
FOUNDER, COCONOGACCO
2019
The first Japanese contestant for the LVMH Prize is also the founder of Coconogacco, a school that challenges the conventions of fashion education.

NEW
Zendaya
ACTOR
2019
In addition to her show-stopping looks on and off the red carpet and collaboration with Tommy Hilfiger, the prolific actress has used her platform to push for greater representation in fashion and Hollywood.

NEW
Zhang Yiming
FOUNDER, TIKTOK
2019
The serial entrepreneur founded TikTok, one of the buzziest new apps capturing the attention of Gen-Z worldwide, while his social media conglomerate continues to build wide-reaching platforms.





FT : Palladium prices hit record as car industry faces tougher r

Palladium prices hit record as car industry faces tougher rules
Demand for precious metal, used in catalysts, pushes gains for year to 33 per cent

Palladium prices rose to a record as expectations mounted of a supply squeeze driven by stricter emissions standards in the car industry.

The price of the precious metal, which is used in car catalysts, rose to $1,700 an ounce on Monday, pushing its gains for the year to 33 per cent and making it one of 2019’s best performing commodities.

Despite a slowdown in global car sales, demand for palladium has increased due to tightening emission standards in China that require more of the metal in car catalysts.

European consumers meanwhile are moving away from diesel to petrol cars, which predominantly use palladium catalysts.

The supply of palladium, which is mined in Russia and South Africa, is also expected not to increase dramatically this year.

“We struggle to see where the market might find material relief as demand continues to grow while supply remains constrained,” analysts at UBS said. “That said, there is potential for the market to overshoot and be vulnerable during periods of risk-off, especially in the context of trade tensions and slowing global growth.”

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • CALM -4.3%

Select metals/mining stocks trading lower:

  • KGC -2.7%, AU -2.7%, HL -2.6%, GFI -2.4%, PLG -1.9%, GOLD -1.7%, SLV -1.6%, GDX -1.5%, NEM -1.1%, SBGL -1.1%, GLD -0.8%, HMY -0.7%, BHP -0.7%, BBL -0.7%

Other news:

  • GTHX -11.7% (presented over the weekend)
  • IMMU -5.7% (provides corporate update; also provides BLA resubmission timeline update)
  • TK -4% (Teekay Corporation, Teekay LNG Partners (TGP), Teekay Tankers (TNK) postpone investor and analyst meeting)
  • NVS -1.2% (presented at ESMO over the weekend)
  • RDS.A -0.9% (quarterly update)
  • AZN -0.8% (presented at ESMO over the weekend)

Analyst comments:

  • ADMS -6.4% (downgraded to Underperform from Neutral at BofA/Merrill; tgt lowered to $5)
  • SXC -1.6% (downgraded to Neutral from Buy at B. Riley FBR)
  • UNH -0.8% (downgraded to Market Perform from Outperform at BMO Capital Markets)
  • ROK -0.7% (downgraded to Market Perform from Outperform at Wells Fargo)

FT : Sunrise changes funding plans for $6.3bn UPC deal

Sunrise changes funding plans for $6.3bn UPC deal
Swiss group slashes rights issue to save purchase of Liberty Global unit from investor backlash

Swiss mobile phone company Sunrise Communications has overhauled the financing plan for its $6.3bn takeover of Liberty Global’s local cable business to appease a shareholder backlash against the deal.

The acquisition of UPC, part of Liberty’s dwindling European empire, was agreed in February and welcomed as a sign of growing confidence among European telecoms companies to pursue consolidation.

However, the mobile company run by former EE chief executive Olaf Swantee faced an uphill task to finance the deal after its largest shareholder, Germany’s Freenet, said it opposed a rights issue proposed by the Swiss company representing 130 per cent of its value.

Sunrise has moved to slash the size of the rights issue by a third after engineering a new funding plan following meetings in recent weeks with 200 shareholders. That will involve taking on much more debt but Mr Swantee told the Financial Times it could justify this because of a new plan to reap much higher synergies from the merger of the Swiss mobile and cable networks.

That was not enough to win the support of Freenet, a 25 per cent stakeholder in Sunrise, which said it would continue to oppose the deal. “It becomes obvious that the deal as such has lost its strategic rationale,” said a Freenet spokeswoman.

Mr Swantee said he was sanguine about Freenet’s continued opposition as the company only needed just over 50 per cent of shareholders to vote for the UPC takeover at a meeting in late October. “We will focus on the 75 per cent. We are not counting on their support,” he said.

He added that the deal already had regulatory approval and that UPC’s performance had started to improve, making the rationale for the merger in the competitive Swiss market more apparent.

“If we don’t execute it then someone else will and we will be left on the fence,” he said.

Ulrich Rathe, an analyst with Jefferies, said the likelihood of the deal proceeding had “clearly increased overall from the 60-40 odds” it estimated in September, but that approval was by no means guaranteed.

Sunrise shares were down 3 per cent in early afternoon trading in Zurich.

FT : Blackstone to buy US warehouses from Colony Capital in $5.9bn deal

Blackstone to buy US warehouses from Colony Capital in $5.9bn deal
Buyout firm’s latest acquisition furthers its bets on the rise of ecommerce

Blackstone has clinched a deal to buy a group of industrial warehouses from Colony Capital for $5.9bn including debt, adding to the private equity firm’s burgeoning portfolio in logistic properties as it bets on the rise of ecommerce.

The deal is the latest in a flurry of multibillion transactions by Blackstone’s property arm, which in June struck the largest private real estate deal in history with the acquisition of another US warehouses portfolio from Singapore-based GLP for $18.7bn.

Colony Industrial’s assets span some 60m square feet across 465 light industrial buildings with a large concentration in Dallas, Atlanta, Florida, northern New Jersey, and California.

“This acquisition of high quality warehouses demonstrates our continued strong conviction in logistics and positive ecommerce trends,” Nadeem Meghji, head of real estate Americas at Blackstone said in a statement on Monday.

Blackstone has built a $36bn war chest for investments in property after setting a new record for real estate fundraising in September with $20.5bn in commitments to its property arm.

Ken Caplan, real estate co-chief executive at Blackstone, has called the private equity group’s foray into logistics its “highest conviction” trade.

In Europe, Blackstone has amassed an €8bn portfolio of warehouses and dark kitchens, which include so-called “last mile” properties used by the likes of Amazon and also house dark kitchens that food delivery services such as Deliveroo rely on.

Colony Capital is expected to receive more than $1.2bn in proceeds.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • THO +5.3%

M&A news:

  • DOVA +38.5% (to be acquired by Swedish Orphan Biovitrum for $27.50/share in cash + CVR)

Select China related ADRs showing strength:

  • BZUN +2.9%, BABA +2.5%, JD +2.4%, WB +2.1%, MOMO +1.9%, BIDU +1.8%, CTRP +1.6%

Other news:

  • CALA +8.9% (reports Phase 2 data for Data From Randomized Phase 2 ENTRATA study)
  • IMGN +8.8% (presents initial safety and overall response data from Phase 1b FORWARD II triplet cohort; also analyses from Phase 3 FORWARD I study)
  • MNK +5.3% (finalizes settlement to resolve "Track 1" opioid cases with the Ohio counties of Cuyahoga and Summit)
  • FLR +4% (awarded ~$1.1 bln Navy contract to exercise the fiscal 2020 option for Naval Nuclear Propulsion work at the Naval Nuclear Laboratory)
  • ICPT +3.7% (submits NDA to the FDA for obeticholic acid for the treatment of patients with fibrosis due to nonalcholic steatohepatitis)
  • MGI +3.2% (Moneygram Payment Systems and Walmart (WMT) amend agreement to extend term through March 29, 2021 and provide additional flexibility related to MoneyGram product offerings in Walmart)
  • SGEN +2.6% (Seattle Genetics and Astellas reports Phase 1 trial of investigational agent enfortumab vedotin in combination with Pembrolizumab; Study met outcomes for safety and 71% of patients)
  • CLVS +2.5% (presents updated data from Phase 2 TRITON2 trial)
  • GCO +2% (authorizes new $100 mln stock repurchase program)
  • ACRX +1.8% (extends supply agreement with SpecGX through December 31, 2022)
  • GSK +1.3% (presented at ESMO over the weekend)

Analyst comments:

  • BBBY +4.3% (upgraded to Outperform from Neutral at Wedbush)
  • URBN +3.6% (upgraded to Outperform from Market Perform at Wells Fargo)
  • NWL +2.4% (upgraded to Buy from Hold at SunTrust)
  • CI +1.8% (upgraded to Outperform from Market Perform at BMO Capital Markets)
  • EMR +0.9% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)