In Brief: Alfin acquisition
This article was originally published in The Rose Sheet
Executive Summary
Alfin acquisition: Investment group headed by J. Robbins Securities (Phoenix) Manager Barry Blank advances Alfin $500,000 in working capital and agrees to raise at least $2 mil. by April 30 to gain control of the company. The initial $500,000 is in the form of a 12% five-year note convertible to common stock at 25 [cents] a share. Alfin Chairman and CEO Elizabeth Fayer has agreed to resign and put her 7.1 mil. shares of common stock in a voting trust for which Blank carries a proxy. On Aug. 1, Blank will have the option to purchase the stock for 12 months at 25 [cents] a share, constituting the purchase of a controlling interest in the firm. Long-time Alfin Chief Financial Officer Michael Ficke will stay on at the company, as will the recently named Senior VP Retail Sales Mary Panvini, who comes from Estee Lauder and Christian Dior. The investment group must deal with Alfin's suit against former spokeswoman and Adrien Arpel founder Adrienne Newman and try to find alternative distribution channels to the Home Shopping Network, which discontinued its marketing agreement with Alfin. The firm has begun to sell its skin and cosmetic products in a catalog sent to 90,000 of Spiegel's top customers...
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Marketing In Brief
ModiFace launches forecasting tool: Toronto-based virtual makeover firm introduces ShadeCast, a makeup sampling and forecasting tool based on behavioral tracking. ShadeCast is used in conjunction with iPhone application MakeUp, which allows consumers to virtually try on makeup in hundreds of shades from brands including Revlon, Cover Girl, Lancome and Clinique. ShadeCast offers 1,000 cosmetic shades from 40 brands and assigns a ShadeScore "to approximately position the [app's] hottest and most sampled color." ModiFace exec Nikkie Gatto likens the app to radio music playlists, helping consumers "looking to capture the current look, but also provide vital market intelligence to our retail channel partners," she says in Nov. 3 release. "The value of data to demonstrate the aggregate behavior will help the industry predict the latest trends and help cosmetic manufacturers better understand the color and products which most resonate with online and iPhone virtual makeover users," the company says