Chanel's New Campaign, Trouble at American Apparel

• The latest ad campaign for Chanel handbags, shot by Karl Lagerfeld himself, features a very Holly Golightly-looking Lily Allen. [Pipeline, Cut]
• A new front-runner has emerged to possibly take over struggling Christian Lacroix. This time it's Italian retail giant Borletti. [WWD, AFP]
• More trouble for American Apparel and its founder Dov Charney? An anonymous store manager reports Charney has been busy firing employees "he deems unattractive." [Gawker]
• Amber Valletta is the latest supermodel to launch a clothing line. [Cut]

• More trouble for Barneys: The retailer's credit rating has been cut once again, and the company announced its chief financial officer has resigned. [NYP]
• LVMH says profits were down 23 percent for the first half of 2009. [AP]
• Last week, Tory Burch announced she'd sold an undisclosed stake in her company to a Mexican finance firm. The Post now reports she and ex-husband Chris Burch gave up a 20-25 percent stake for $100 million. [NYP]
• Beauty chain Ricky's is expanding, preparing to open its 22nd store. [CNY]
• Kate Moss has landed a new gig: Simon Cowell has signed her up to be a judge on a new British reality TV show called Battle of the Bands. [Models Blog]
• Did you want to hear Diane von Furstenberg and socialite/author Gloria Vanderbilt chat about "the joy of sex"? Go right ahead. [HuffPo]