If you've ever seen celebrities on the red carpet at one of the major awards shows you've probably seen Fred Leighton jewels. The estate jeweler routinely outfits many top stars with glittering jewelry for special occasions. It's been a tough year for the jeweler, which filed for Chapter 11 bankruptcy in April 2008 but now rescue comes from diamond jewelry brand Kwiat. National Jeweler reports that Kwiat Enterprises, LLC and two other partners have purchased the assets of Fred Leighton in a $25.8 million deal.

Kwiat will take over the Fred Leighton business, including its boutiques in New York City and Las Vegas, continuing to run them under the Fred Leighton name. Kwiat's other partners are Och-Ziff Capital Management Group LLC--partnering as FL Acquisitions LLC and FOF Inventory Holding, which consists of four estate and jewelry dealers including Windsor Jewelers, Robert Sadian and Mark Emanuel of European Arts and Antiques, Sima Ghadamian of Sima G. Ltd., and Moonbeam Consulting, whose principal is the company's original founder Fred Leighton.

Greg Kwiat, who will be chief executive officer of Fred Leighton, told National Jeweler that he see Fred Leighton as a "very complementary acquisition for Kwiat." After all both brands court the favor of Hollywood stars and both have retail stores on Madison Avenue in New York City and in Las Vegas. Kwiat hopes to boost Fred Leighton's retail presence and its wholesale presence in fine department stores and independent jewelers.

Jewelry collector and Fred Leighton owner Ralph Esmerian who filed the bankruptcy petition, bought Fred Leighton for $100 million in 2006 using a $178 million loan from Merrill Lynch and Co. Last year he planned a Christie's auction to recoup some of the brand's outstanding debt claims. Esmerian relinquished control of the company to a restructuring officer in January 2009 and earlier this month a bankruptcy judge signed an order that authorized the sale to Kwiat and the other two companies of Fred Leighton's assets, free and clear of all liens, claims, interests and encumbrances. The company's main creditor, Merrill Lynch will be the first beneficiary of the proceeds of the sale. In a press release issued by the company, Fred Leighton himself expressed enthusiasm that the Fred Leighton Madison Avenue store will continue to remain a New York landmark and that the brand "will continue to be the preeminent antique jeweler in the world."

Stationer Mrs. John L. Strong, one of the world's leading boutique luxury brands whose customers included Tom Cruise and Katie Holmes, Vogue editor Anna Wintour, Oprah Winfrey and the Duke and Duchess of Windsor, is shutting down after 80 years. The company has decided to close its Madison Avenue atelier, its boutiques, web site, catalog, wholesale and corporate businesses due to the recession, the Times reports.

Nannette Brown, the company's chief executive and creative director, said that an inability "to finance the business's expansion plans combined with a challenging retail and economic environment, left the company with no alternative but to close." Efforts to sell the company also failed. "This is a sad day for Mrs. John L. Strong," Brown said in a statement, "and a sad day for luxury as the world has become increasingly bereft of unique, hand-finished products." Indeed.

A restaurant on New York's Madison Avenue has filed for bankruptcy. Frederick's Madison restaurant, which serves French fare, filed for Chapter 11 in order to avoid eviction. Crains New York reports that the restaurant has been unable to pay its rent for the past four months and owes its landlord $261,187 as well as owing more than $145,000 in unpaid taxes to New York state and carrying thousands in outstanding debt with vendors.

The owner, Frederick Lesort, who also runs Opia and Frederick's Downtown believes that he can turn this business around in six months and emerge from Chapter 11. He has reduced menu prices by thirty percent (steak au poivre will cost you $36 according to a dinner menu on their website. Also a competing restaurant in the neighborhood, La Goulue, is set to close in June so Lesort feels he has a clearer shot at keeping Frederick's Madison alive.

Times may be tough but that isn't stopping luxury brands from expanding their stores in New York City especially at the popular addresses of Fifth and Madison Avenues. The International Herald Tribune reports that on Fifth several new stores will be opening soon including a new flagship for Tommy Hilfiger, Giorgio Armani 40,000-square-foot palace of neutral-toned elegance at 56th Street, and Abercrombie & Fitch taking 25,000 square feet of the Brooks Brothers location at 53rd Street. On Madison, Calvin Klein has expanded and Hermes is opening a new men's store near its existing location.

Why the push on space when the economy in New York is sluggish? For luxury stores having a big store is an important part of their branding, a chance to translate the message of the label into a physical space. Having a large store with a small amount of merchandise highlighted in the store has long been the luxury model whereas stores that sell things with a lower price point often stuff the shelves and racks with merchandise. The IHT article quotes achitect Kenneth Walker, a retail design and branding expert, who says that the empty space subliminally sends a message that the store is luxurious and also the implied scarcity may increase the desire for a product. Brands also seek space on Fifth Avenue because the address alone implies luxury and even when people are shopping less a good location is seen as a long-term investment. The economy may rise and fall but the reputation of New York's famous shopping blocks remains strong for now.

This week Kwiat brought some more sparkle to Madison Avenue with the opening of their 1,000-square-foot boutique at 725 Madison near other high-end diamond jewelry brands including Graff and Leviev. The flagship store celebrated their grand opening with a party hosted by Jennifer Hudson who tried on Kwiat designs for the press. Actress Eva Amurri and editors from various consumer fashion magazines were also in attendance. The company is dipping their toes into the retail business and is looking at shopping spots known for big spenders such as Dubai, United Arab Emirates, and Russia.

Ralph Lauren's flagship store on Madison Avenue (pictured above), aka the Polo Mansion, is probably the most luxurious retail outlet in the world. Not surprisingly, it made Naomi Leff, the interior decorator who created it out of a gutted shell, into a household word in design circles. The Monacelli Press presents a long-overdue compendium of her work in the alluring new book Naomi Leff: Interior Design. "To me it's the most beautiful store in the world," Lauren said upon the Mansion's completion in 1987, "the details, the world it creates, the textures. It's a store that has an emotional impact. I've watched so many people come into it and be dazzled when they enter." Leff went on to design several more stores for Lauren and stunning spaces for Giorgio Armani and private clients as well. See more of her work in the gallery.

French luxury powerhouse Hermes will open a men's-only store, the first of its kind in the world, across from its Madison Avenue flagship in NYC this fall. The 6,000-sq.-ft. space, designed by Rena Dumas of the architectural firm RDAI in Paris, will carry the brand's entire range of men's leather goods, watches, clothing, sportswear and accessories, and will have a full floor devoted to custom and made-to-measure merchandise, DNR reports. As my colleague Deidre Woollard related earlier this month, Hermes recently announced that first-quarter sales increased 13.4 percent to 415.1 million euros, or approx. $621.7 million. Sales in the Americas were up 23 percent. Men's merchandise accounts for 45 percent of the luxury brand's total sales, DNR notes. Last June, the company opened a 5,000-square-foot shop in New York's financial district with an emphasis on menswear, catering to the Wall St. crowd.