Morning Hemlines: Bankruptcy, Ad Sales, Wal-Mart, Mango, Lagerfeld & Teese

Steve & Barry's will file for Chapter 11 as early as Wednesday as rescue financing falls through. (WSJ)

Leading analysts predict "worse than expected" ad spending for coming year due to weak economy; ad execs not panicking yet. (NY Post)

Wal-Mart backtracks on fashion front after unsuccessful attempt at upscale apparel, which company admits was "overshot." Will unveil new line of "casual" separates from l.e.i. and OP. (WSJ)

Barcelona-based retailer Mango, which has eighty-four stores in the Middle East generating over $2 billion a year, will open a location in Iraq. (WWD)

Karl Lagerfeld will design homes in the Dubai enclave Isla Moda, "the world's first dedicated Fashion Island," in exclusive deal with Dubai Infinity Holdings. (Zawya)

G-III Apparel Group expands into retail with purchase of Wilson's The Leather Experts outlets. (DNR)

Burlesque star Dita Von Teese will branch out into fashion with her own line of vintage-inspired lingerie set to debut in London this fall. (LA Times)

by Sean Santiago