Giorgio Lives

It was bad news for Rodeo Drive when venerable icon Giorgio Beverly Hills closed up shop recently after 39 years on the street. But here's the good news: Max Azria, owner of the BCBG Max Azria Group, has decided to come to the glamour store's rescue. Through a complicated deal with Procter & Gamble, the terms of which were not disclosed, Azria will control operations of the 6900-square-foot store; BCBG will produce new merchandise for the store that will continue to include a Giorgio Beverly Hills label; and P&G will retain the brand name, producing fragrances both for the Giorgio boutique and for general department store distribution.

P&G purchased the Giorgio Beverly Hills operation from Avon in 1995, but the boutique simply did not meet the company's standards in terms of revenue. Analysts cite P&G's intense focus on the brand's fragrance line, which includes Giorgio Beverly Hills, G, Red and Hugo Boss, rather than on the retail business.

Remodeling of the store is slated to begin in September, for completion in time for Christmas. The space will be split in two, to offer both a Giorgio Beverly Hills and a BCBG unit. The BCBG Max Azria Group already has a 1400-square-foot Rodeo Drive unit just up the block from Giorgio. It will be converted into an Herve Leger store.