The Olsens made the cover of Newsweek! Can you believe it? They got the cover because of The Row, their luxury clothing line which is the crowning achievement of their billion-dollar company. You can read the full piece at Newsweek here – I was hoping for a good interview, but for the most part the piece just reads like dry copy about Mary-Kate and Ashley’s company and what people think about it. The quotes are few and far between, but if you’re interested in fashion, the business of fashion and entrepreneurship, it’s definitely worth a read. Here are some highlights:

The collection [The Row] —embraced by older women with little patience for celebrity frippery—has been worn by business executives and first lady Michelle Obama.

Critical validation has come in the form of a nomination from the Council of Fashion Designers of America as the year’s best new womenswear designers. They have been recognized alongside Joseph Altuzarra, who worked at Givenchy, and Prabal Gurung, a Bill Blass alumnus. The winners will be announced in New York on June 6.

The Olsens, who will be 25 in June, did not go to fashion or art school. They have built a considerable reputation by obsessing over darts (they hate them), gamely absorbing the blows of skeptical retailers, and keeping their celebrity mostly under wraps. They also have become champions in a longstanding effort to save this country’s garment factories. In 1965, factories in America produced 95 percent of the clothes sold in this country, according to savethegarmentcenter.org. Today, only 5 percent of the clothes sold here are produced locally. The future of New York’s garment center is no longer in mass production, activists argue, but rather in small-scale, high-end manufacturing that relies on skilled artisans.

The Olsens have taken up this blue-collar cause by producing their collection in factories in New York and, to a lesser degree, Los Angeles. (Their handbags are produced in Italy, as are a few of their superfine knits.)

“I really believe in our being able to create here and utilize the skills that people have here,” says Ashley. “The skill set is here. Our main issue is that some of the machinery is gone, so some knitwear is produced in Italy. But whether it’s clothing or cars, I believe in manufacturing as close to home as possible.”

Their holding company, Dualstar Entertainment Group, was created with their then-manager, Robert Thorne, when they were about 6 years old as a vehicle for selling Olsen-branded merchandise and projects. By age 10, they had a line of clothing in Walmart; eventually they branched out with a contemporary line called Elizabeth & James, named after their siblings. At 18, they took over Dualstar, buying out Thorne.

“Thank God our parents wanted us to be involved,” Ashley says. “Running a fashion company, it’s just as important to understand numbers as it is to have a design point of view,” Mary-Kate says. The company now has annual sales of $1 billion, according to Forbes.

The Row, founded in 2006 and named after Savile Row, began with Ashley’s search for a perfect white T shirt: fashion’s holy grail of fit, comfort, durability, and price. She was dissatisfied with what was available, and a business was born. That first collection consisted of jersey T shirts and knit leggings. It evolved into a line of intricately woven fox jackets, cashmere sweaters, wool and mohair dresses, and leather leggings for which women are willing to pay $1,700.

The Row might best be described as the Gap meets Jil Sander: basic, minimal, adult, and extremely expensive. A jersey T shirt: $290. A cashmere and mink sweater: $5,900. And for fall, while “debt” and “unemployment” are on the tip of everyone’s tongue, the Olsens have introduced more fur, more cashmere, raising their overall prices by as much as 25 percent.

Their customers can afford it. While most designers thrill to say their core shopper is a 25-year-old woman, The Row’s main customer is 35 to 45 years old. Instead of encouraging women to cling to their slacker years, the Olsens want them to luxuriate in their most productive ones. That point of view is rare. Most young designers create collections for their contemporaries—or some fairy-tale version of them. And even as designers grow older, they tend to shift their focus to women who are their junior. The Olsens seem to revel in the promise of maturity. Their work avoids high-society, leisure-class clichés. Instead, it evokes a professional, tailored, hail-a-cab-in-the-rain reality.

Instead of trying to leverage their fame, the Olsens hid it—most notably by not putting their name on the label. “Initially, I wanted someone else to front the brand,” Mary-Kate says. “We wanted someone else to rep it. But we couldn’t lie.”

In their showroom, which is in the offices of Dualstar, the Olsens do business around a banquet-size table decorated with a bouquet of white roses and lilies. Ashley tends to zero in on the technical aspects of the collection. Mary-Kate is more likely to highlight pure aesthetics. Both, however, are adamant about what they want the collection to be.

“We really want The Row to be an American luxury brand,” Ashley says. “We believe in not just American by representation but American by make.”

To that end, the Olsens traveled to Washington last year, where they lobbied the East Wing on the importance of the garment center: fashion provides New York with 28 percent of its manufacturing jobs. It puts $10 billion annually into New York’s economy.

Who knows… the next time the first lady wears a dress by an American brand, she might also make a point of saying it was made in America. In the meantime, the Olsens apparently have already won Mrs. Obama’s respect in a very public way. She wore their pleated skirt when she appeared in April on The View.

[From Newsweek]

I don’t think I realized the American clothing manufacturing statistics were so harsh. Yikes. Give the Olsens an award, damn it! They’re bringing back American manufacturing, one $6000 t-shirt at a time! (Double yikes.)

By the way, while I think Mary-Kate was talking about taking themselves out of the equation as far as business, being the corporate face of the brand, I also think they would be wise to not be the FASHION face of the brand. Because while I think The Row is impeccably made, their clothes always look like hell on them.

Photos courtesy of WENN. Newsweek cover courtesy of CoverAwards.

The Kardashian Mastercard has been cancelled. You can no longer have the pleasure of charging five dollars worth of soda and candy on your Kardashian Kard. Ordinarily, I wouldn’t really give a crap, but the statement that the Kardashians issued to Gossip Cop is worth its weight in gold. It’s the funniest thing I’ve read all morning:

The Kardashian Kard is kaput.

Kim, Khloe and Kourtney’s much-hyped prepaid debit card has been dumped over allegations that it contains several hidden fees that may be illegal.

This afternoon, legal counsel for the Kardashians’ corporation, Dash Dolls, LLC, sent a “notice of termination” to the companies behind the Kard, ending the endorsement deal after the fees controversy surfaced.

Connecticut’s attorney general, Richard Blumenthal, announced last Friday — the so-called “Black Friday” after Thanksgiving that sees enormous shopping activity — that his office was investigating whether the Kardashian Kard violated consumer protection laws with “predatory” monthly and service fees.

The notice of termination letter says that the Kardashians “have worked extremely long and hard to create a positive public persona,” and are recognized as “honest, ethical, and fun-loving individuals who are kind and caring to others.”

Because the card “might violate” certain laws, rules and regulations, notes the letter, Dash Dolls “terminates the agreement in its entirety, effective immediately.”

Gossip Cop called William “Claude” Butler from the Revenue Resource Group, the firm behind the Kardashian Kard, but has not received a response.

[From Gossip Cop]

Yes, whenever I think of “Kardashian” the first words that pop into my head are “ethical” and “positive public persona”. I definitely don’t think “famewhore” or “Kat-Face” or “famous for a sex tape”. Granted, the Kardashians on the whole are relatively harmless (in my mind), and I don’t begrudge them their “takesies-backsies” on the whole credit card thing. But here’s a funny story – I bet they kept the thousands of dollars they got as an appearance fee to launch the credit card. Ah, ethics.

Header photo courtesy of Fame.

Clay Aiken recently popped by the set of “American Idol” without being invited – or giving any warning. Nonetheless, he expected the red carpet to be rolled out for him – and got the shaft instead. Producers ran him through the backstage really quickly, refusing to let him speak to the contestants. Apparently he was hoping to mentor them, especially Adam Lambert, who was said to be Clay’s favorite. But no one from the show was interested, to say the least.

“He was given the nickel tour, allowed limited access to the backstage area and sent packing,” said the insider. “he was upset.”

Producers and reps from “American Idol” have had a long-simmering feud with Clay because he was one of the first contestant to bolt from 19 Entertainment, the management company that oversees the recording deals, merchandising, touring, sponsorship, and movie deals for “Idol” stars.

Network execs believe that Clay encouraged Kelly Clarkson to cut her ties with the show as well.

“They’ve always held a grudge against Clay for that,” revealed the insider. “So when he showed up at the ‘Idol’ studios and asked if he could give a little pep talk to the remaining finalists, they told Clay thanks… but no thanks.

“It was made clear to him that he was not welcome.”

The rejection was just the most recent blow to the 30-year-old’s ego. Late last year, he was dumped by his record company, RCA.

Added the insider: “‘Idol’” execs feel he’s trying to use the show to resuscitate his career.”

[From the Enquirer, May 18th, 2009, print ed.]

Burn. I can’t really blame Clay, Kelly, and whoever else joined them in leaving their management company. All of the music the American Idols put out sounds the exact same, until they get their own management and control. You know how you always want to vomit whenever you hear the two finalists perform their last song? It’s always specially written just for them, and includes a lot of creative lyrics about hope and destiny set to the backtrack of me vomiting. And you’re always sitting there thinking, “Didn’t they sing this exact same song during the last four finales?” Yeah, because there’s one gibbon with a typewriter pounding out the lyrics behind the stage. It’s crap. So I say good for whoever moves on to something bigger and better, because a lot of them do have talent, but “Idol” squashes their uniqueness. Anyhoo… I had a point here.

Yes! I don’t blame Clay for leaving, but unfortunately his sound is an exception to that whole diatribing paragraph above. His voice was made for Muzak. He’s not going to do well anywhere, CD-wise. Broadway – that was where he shined. Maybe he was trying to ingratiate himself to AI producers. If that was the case, I’d tell him not to bother, and stick to the stage anyway.

Here’s Clay with Tyra Banks at the GLAAD Media Awards in New York City on March 28th. Images thanks to Fame Pictures .

In January we wrote that Gwyneth “The Goop” Paltrow was launching a New York City gym with her scammer trainer Tracy Anderson. Anderson has cheated both clients, businesses, and former lovers out of tens of thousands of dollars in the past. She also trains Madonna, and it makes absolutely no sense why either of these famous women is willing to be associated with her. And Gwyneth is actually in the process of starting a business with this woman!

Unfortunately (though certainly not surprisingly) for everyone, their gym is utterly ridiculous, and proves just how out of touch Gwyneth is with the real world. As if her Goop website didn’t already do that. Their employees are having to cold call people in an attempt to get them to sign up. Why? Because it’s a whopping (and insane) $4,500 just to join the place, and then hundreds of dollars a month for the membership fee!

GWYNETH Paltrow is struggling to sign up members for her new gym.

The Iron Man star has teamed up with her personal trainer Tracy Anderson to run the fitness centre in New York’s TriBeCa district.

However, they are so desperate for customers, staff have been cold-calling people inviting them in for a visit.

One person who was contacted said: “It’s ridiculous. Membership is like $4,500 to join and then hundreds of dollars a month. Who can afford that right now?”

The gym is supposed to open later this year.

[From OK!]

I’m sure Gwyneth will be as shocked that people don’t like her gym – and don’t like the unnecessarily inflated costs associated with it – as she was by people not liking her website. Clearly Tracy Anderson doesn’t know anything about running a business – all she knows is how to take people’s money. I’m surprised she’d even want to team up with Gwyneth for a gym. In the past, all Tracy’s done is collect people’s fees and run. But Paltrow is supposedly one of her closest friends. How’s it going to work when she inevitably scams her famous friend too?

Gwyneth Palrow is taking her commitment to promoting obsessive physical fitness to a dangerous new level. While she used to be happy just shoving her GOOP in our faces, now she’s planning on helping her equally obsessive trainer Tracy Anderson – who also trains Madonna – open a gym in New York City.

Gwyneth Paltrow helped her trainer Tracy Anderson find a studio space on Greenwich Street so that you too can have a body like hers—and Madonna’s. (Anderson has lived and traveled with the buff pop star for the last two years, keeping her in shape.) “Gwyneth came to see every space, engaged in detailed discussion after each one,” says their broker, Prudential Douglas Elliman’s Anita Grossberg. Anderson’s workout combines dance aerobics and Pilates. “When you walk into the studio it looks like a circus—bands and cubes and props are hanging from the ceiling,” Anderson said from South America, where she’s on the road with Madonna. “When I started training Gwyneth, she couldn’t dance at all, and now you should see her.”

[From New York Magazine]

Tracy Anderson also has a studio in Los Angeles – which customers say is poorly maintained with filthy bathrooms. Anderson is not only a crazy trainer, but a terrible, scamming “businesswoman” too. She shafted hundreds of customers out of money for their pre-paid training fees in Fischers, Indiana.

“I was a client of Tracy Anderson Studios in Fishers also. Her program does work, but don’t believe everything that you hear about Tracy and her business. It is true that she did leave her clients in Fishers overnight…just took the machines and our money and left. She claims to have been a student at the Julliard School of Dance, but come to find out she was there for only 3 months and then left.”

[From Gabsmash]

Anderson also claimed she’d create personalized pilates regimens for different body types, which her customers paid for. It turns out the regimens were actually the same for everyone. In addition to the Julliard claims, Tracy also said she was in Cats and was Power Ranger, which was false. Ton of her jilted former clients have posted on Gabsmash’s forums complaining about her, and they all have a similar story to tell. I can only imagine what kind of trouble the woman plans to get into in New York.

In April Us Weekly did an article about Anderson, which included her diet recommendations. Many of the meal plans had a total of less than 800 calories a day, which is definitely dangerous. In addition, Anderson also recommended working out for two hours a day, six days a week. Yet Gwyneth is still a devotee. In her latest GOOP email, she says she used to have a “Shar-Pei-like stomach” until she met Tracy, who apparently changed her life.

Tracy Anderson is a scammer promoting an utterly insane, unhealthy, extreme, and unbalanced lifestyle. The thought of this woman launching another gym is terrifying. I can just see women fainting en masse. Who can safely survive on a lunch of two hardboiled eggs, ½ a cup of baby carrots and ½ a cup of cherry tomatoes? All we can do is hope this is just a pipe dream on Gwyneth and Tracy’s part – though something tells me it isn’t.

Update: Thanks to editor David Zivian at Indianapolis Monthly for commenting with a link to this excellent profile of Tracy Anderson and her questionable business practices. She has a habit of not paying her bills or rent and regularly left businesses in the lurch owing money. Anderson has been sued six times in Indiana. What’s more is that she left her husband for a married guy she also owed tens of thousands to and then scammed that guy into investing even more money into her business, only to leave him once she hit it big.

Here are Gwyneth and Madonna on their way back from workouts with Tracy Anderson this past spring. Images thanks to Fame and Bauer-Griffin.

For some reason I’ve always been oddly interested in the Olsen twins, but lately that interest has started turning to disdain. I think it’s the absolute insistence on excess – take a gander at the pictures below if you need more evidence. They each weight what, 86 pounds dripping wet? They’ve got to be schlepping at least 200 pounds worth of baggage.

And it annoys me how they try to emphasize how tiny they are. They don’t seem to try to emphasize thin or svelte; they want to look tiny. Like they’re little girls and they’re trying to disappear. Why else are they lugging around all that baggage? Are we really supposed to believe they don’t have ten handlers to do that? They just knew it get them a lot of press because they look so little next to all those suitcases. Bravo, you’re media maestros, the both of you.

It seems like they’re always up to something new, and earlier today Mary Kate and Ashley Olsen arrived at London’s Heathrow International Airport.

The “Full House” hotties emerged from the main terminal with a ridiculous amount of luggage loaded onto twin carts as they headed for their chauffeured car while trying to ignore the paparazzi.

And while they’re both big fans of recreational world travel, this time the trip is for business, rather than pleasure.

The Olsens are overseas for the big launch of yet another line of clothing called The Row, making stops in the UK and Paris.

[From the Gossip Girls]

Just in case they don’t get enough press from their luggage-to-twin ratio (5 to 2, if you’re wondering), Mary-Kate has made sure to have one of her many fur coats prominently displayed. Because everyone knows once you passive aggressively tell PETA to f off, you’ve really made it.

Here’s Mary-Kate and Ashley Olsen arriving at Heathrow airport in London today. Images thanks to Bauer-Griffin .

It’s been reported for a while that the Olsen twins have been fighting off and on. That’s certainly to be expected when you’re twins; it’s to be expected when you’re famous; and it’s to be expected when you work together. Put those three issues together and add in the fact that the girls often live in the same place and you could see how friction might arise.

Ashley and Mary-Kate have pretty different personalities. Ashley is more serious and career driven whereas Mary-Kate is more of a free-spirited partying type. She’s also had some personal issues (eating disorders, addiction – depending on who you believe) that are getting in the way of the twin’s joint work.

Ashley and Mary-Kate Olsen, 22, have spent their whole lives in synch, and together created their clothing lines, The Row and Elizabeth and James, but an insider says their work ethics don’t match anymore — causing a serious rift in their relationship.

“Ashley really wants to be a respected businesswoman and be taken seriously,” says the pal. “MK does too, but she hasn’t been willing to give up her lifestyle and act like an adult for their job.” So Ashley has taken a drastic step: distancing her twin from the couture end of their joint fashion empire. “

Ashley came to a difficult decision. She decided that MK should not be involved with The Row,” says the insider. “She asked her sister to step back from her current responsibilities until she has her personal life together.” Instead, MK will focus on their more affordable line, Elizabeth and James, for which their roles were always less hands-on. “It’s tough because The Row was so much of Mary-Kate’s idea,” says the insider. “Mary-Kate has a unique fashion sense,” notes an insider. “I just see myself more as a businessperson,” Ashley says.

[From In Touch]

I think it’d be a really good idea for Mary-Kate and Ashley to separate their lives a bit. I can’t imagine any two people – twins or not – that could be so intertwined in so many parts of their lives and do it without a good deal of fighting. And it doesn’t sound like the kind of petty sister fighting you grow out of. Business conflicts – especially within families – can go on indefinitely. And they do both have nearly opposite personalities in a lot of ways. They might be happier of they got to emphasize that more and spent a little less time as a unit.

Mary-Kate and Ashley Olsen are shown at the Costume Institute Gala on 5/5/08. Credit: Wild1/PRPhotos

Britney Spears’ close friends and family are worried that she’s being pushed too hard by her record label. According to some, Jive Records now sees Britney as nothing more than a “cash cow,” since they’re no longer worried about her mental health. And it seems they’re trying to push her next CD out as quickly as possible to take advantage of her recent good press.

Britney Spears’ label recently announced that Spears will release her sixth studio album, “Circus,” on Dec. 2.

While some might consider the new work a marker of Spears’ improving health, some close to her fear that now that the worst seems to be over, she’s going to be treated as little more than a cash cow.

“Britney has been going to the studio ever since she got out of the hospital, but it was more a therapeutic exercise than anything,” says a source close to the Spears family. “The people who really care about her knew that even though she wants to be the pop star she used to be, it won’t be good for her. Even her label, Jive, understood that. It’s a little unsettling to us that they’d want her to get back to recording so fast.”

There’s also the question of how the album can be put together so quickly. One source close to Jive says that the swift turnaround won’t be an issue. “She’s not Paul Simon. As long as it’s produced well and has a good beat, she’ll have a hit,” says the source. “Really, the quicker we do it, the better it will be. You shouldn’t overthink some things.”

[From MSNBC's The Scoop]

I love the Paul Simon line. What the hell? From a business standpoint they’re probably right though. It makes sense that they’d want to take advantage of all the free publicity – and it’s good publicity, no less – while they can. Britney’s musical style has always relied heavily on digital help, so it doesn’t seem illogical that they could turn her album out pretty quickly.

Honestly at this point the record company still need sto be aware and attentive towards Britney’s mental state. She seems to be doing really well but it hasn’t been all that long and she’s probably not on completely solid footing right now.

It seems like it would serve everyone best if the album actually is good, considering Brit’s last few bombs. If Jive just wants to get whatever bit of money they still can out of Britney, do it fast. If they actually want her to continue working and have a longer career with them, you’d think they’d at least consider the importance of quality.

Britney Spears, looking amazing as she left the International Dance Academy in Hollywood yesterday. It’s obvious that all those dance workouts are doing a body good! Images thanks to Fame.

Hugh Hefner may finally be growing up. Whoever thought a man could jump from stunted 25-year-old bachelor to senior citizen without any of the stages that generally come in between? According to Pop Tarts, Hef is finally planning on retiring the bunny ears. The parties, the extra girlfriends – maybe even the grotto. It’s all on its way out. Say it ain’t so.

It looks like Holly Madison is finally getting what she wants — Hugh Hefner all to herself and the winding down of his wild parties populated by girls wearing next to nothing.

Fellow girlfriends Kendra Wilkinson and Bridget Marquardt were nowhere to be seen at last Thursday’s EA Madden NFL ’09 Game Launch party at West Hollywood’s STK. And the Playboy founder clearly only had eyes for Madison as they canoodled in the back VIP booth, with Holly very much in her element and laughing a lot more than usual (for once she didn’t have to share her man).

… Pop Tarts has been told by numerous inside sources that this is the last time bunnies and big-wigs will hop around the Shakespeare-themed party. After decades and decades of wild nights, we hear Hef is calling it a day and that Playboy Enterprises has decided that this party and the upcoming annual Halloween party will be the last that the magazine mogul personally throws as a means to cut costs.

A rep from the men’s mag kept mum on the murmurs, saying: “Who knows what will happen in a year from now?”

[From Fox News’ Pop Tarts]

The article says that the mansion is still going to be available for private party rentals. Sounds like an excellent place to host a wedding shower to me. It sounds like the decision is mostly a business one, but I’m sure Holly Madison still has visions of little babies crawling around in bunny costumes. Of course they’ll be the kind with footies and a trap door in the back for a quick diaper change. No word on if Hef is really ready to act his age… or even half his age. But it seems like a step, nonetheless.

Here’s Hef and some bunnies at the “Madden NFL 09″ VIP Premiere and Celebration of 20th Anniversary of the Madden NFL Franchise at STK/Coco De Ville in West Hollywood on August 7th. Images thanks to PR Photos. Images thanks to WENN.

Usher and his mother Jonnetta Patton have had some infamous falling outs over the last few years since his wife Tameka Foster came into his life – and supposedly drove quite the wedge between the once tight mother and son. Eventually Usher fired his mother, saying it was better to just have a mom and someone else handle his work life. Which in a way does make sense – except that Patton had always done an extraordinary job with her son’s career, so no one really bought that excuse.

Usher hired famed manager Benny Medina – and despite a long and successful track record, Medina failed to bring in the kind of numbers Usher has seen in the past. His current album sold just 2 million copies so far, despite his last album Confessions selling 19 million. That’s one heck of a big difference. So Usher has come crawling back to his mother – who accepted the job.

“Usher has dissolved his management arrangement with Benny Medina and has re-engaged Jonnetta Patton as his manager,” the mother and son said in a statement Wednesday. According to a source, “He wanted her to come back on board and she decided to.” The source cited lackluster album sales as one of the reasons Usher decided to reconsider his management.

In his own statement, Medina told PEOPLE Wednesday, “With an artist like Usher, the bar is set really high. Whether it was management, marketing or the music, we achieved a number one single and a number one album… I had a great time and we parted ways amicably.” Usher’s publicist, Patti Webster, also resigned on Aug. 1.

In an interview with Vibe earlier this year, Usher would not characterize the split from his mom as a firing. Instead, he said he paid her “the ultimate compliment” by having her retire.

[From People]

Clearly it was more than just the “ultimate compliment” – Patton didn’t attend Usher’s wedding last year, which he postponed and nearly called off. There is definitely a lot of behind the scenes drama in this family, but it says a lot about Patton’s nature that she was willing to come back on board and guide her son’s career after all this. Hopefully he’ll be appreciative.

Here’s Usher with his mother Jonetta Patton and Holly Davis-Carter at the New York Premiere of ‘ In The Mix ‘ in November 2005. Images thanks to WENN.