Cityfile: New York's Most Notable and Influential

• A group of 21 stores on the Lower East Side are coming together to offer a weekend of discounts in honor of the (capsule) trade show that's currently underway. [Pipeline, Cut]
• Modeling rates really must falling: A Hugo Boss model has been charged for taking part in the robberies of 15 gas stations and delis. [NYP]
• Eddie Bauer will survive, after all. A private equity firm is buying the company out of bankruptcy for a whopping $284 million. [BN]
• Rihanna half-shaved her head this week. Exciting! Don't think for a moment, though, it was an original move on Rihanna's part, says an outraged Joe Zee of Elle. [People, Twitter]More

• Not only is Karl Lagerfeld not planning on retiring, he tells Cathy Horyn that he's staying at Chanel until he dies. Also: He says the blogger who started the rumor that he's stepping down "is an idiot." [NYT]
• The Jackson clan all wore Versace to the memorial service today, in case you were wondering. [InStyle]
• Roberto Cavalli is launching a made-to-measure service that will offer handmade dresses at prices starting at $41,000. But only 35 pieces will be produced. Act fast! [WWD]
• There's uncertainty in the world of haute couture these days. Shocker. [NYT]
• W catches up with the Rodarte ladies. [W]
• The super-successful Saks saleswoman who lined her own pockets via fake refunds and store credits was sentenced to three months in prison. [NYP]
• Several ex-employees of Scoop are suing the chain for labor violations. [CNY]
• The Calvin Klein Jeans billboard on Houston is now even less risqué. [BB]

Donatella Versace graced New York City with her royal presence this week. The reason for her visit? She was here to preside at the opening of Art Unites, a program created in conjunction with the Whitney that is giving out art supplies to 1,400 seriously ill children around the world. The kids use the materials to make art work; their pieces then get turned into special edition Versace tote bags, which are sold to the public with the proceeds going back to non-profit. It's a fine cause, of course. But did event organizers really have to subject these sick kids to physical contact with Donatella? Haven't they been through enough as it is? A collection of unfortunate kids subjected to the Donatella's frightening embrace after the jump.More

• Courtney Love may be incapable of paying her AmEx bill, but that isn't stopping her from launching her own clothing line. Coming soon: "cotton ribbed body suits" and "cashmere harem pants." [Grazia, SW]
• Emma Watson is the new face of Burberry. [Vogue]
• Bee Shaffer may be attending posh parties at the Venice Biennale right now, but she's also job hunting at the moment, in case you weren't aware. Then again, she's also interested in studying acting, so she may just do that instead. [FWD]
• Five months after he was kicked to the curb, Fabien Baron is returning to Interview as the mag's editorial director. [WWD, FWD]
• Now's the time to hit up Save Fashion; the festivities end on Friday. [Pipeline] More

• Versace CEO Giancarlo di Risio is expected to hand in his resignation tomorrow. He's leaving after reportedly clashing with Donatella Versace "over her lavish lifestyle," not surprisingly. [NYT]
• The second season of The City has started filming inside Elle's offices. [WWD]
• Rosa Cha has launched a line of bathing suits that sell for as much as $3,200 apiece. And you can't even get them wet. But that isn't stopping women from buying them, supposedly. [NYP]
• If that bathing suit sounds appealing, you're probably the sort of person who'd also be interested in buying these $340 Hermès cotton boxer shorts for your husband. [FWD]
• Karl Lagerfeld is hitting the big screen. Or his voice is, at least. He'll be playing a villain in an animated French movie. [Fashionista]  More

• The giant Burberry sign was illuminated atop its new HQ last night, and a big party at the Palace Hotel followed. [WWD, SF, FWD, NYM, Fashionista]
• Calvin Klein is launching a new scent called "Free," which it most certainly will not be. And Kate Moss also has a new fragrance planned. [WWD, Grazia]
• A company is making "tan through" swimwear! "The fabric allows 80% of sunlight through the bathing suit, so you don't get tan lines." [Cut]More

• Topshop opens tomorrow, in case you haven't heard. [NYT, Racked, NYM, Glamour, Pipeline] 
• If you wish to bypass the madness in Soho, the first-ever Balenciaga outlet in the U.S. opens tomorrow at the Woodbury Commons. [NYM]
• The British media just about melted at the sight of a J. Crew-clad Michelle Obama today. [WWD]
• The Costume Institute gala is a mere four weeks away but getting people to sponsor tables hasn't been easy work for Anna Wintour. If you notice fewer mentions of Burberry, Versace, and Gucci in future issues of Vogue, now you know why. [FWD]
• Dowdy retail chains are trying to spiff things up in order to appeal to "modern women who are now shopping for style within their means." [NYT]
• Resort season isn't quite what it used to be. [WWD]
• Why is Lorenzo back in NYC? Where's Marc? It's a mystery! [Fashionologie]

There you were thinking that seeing celebrities with ten-piece sets of Louis Vuitton luggage, or people with more money than style attired in outfits emblazoned with Versace medusa heads, was merely an assault on one's fashion sensibilities. But it turns out that fashion emblems may be worming their way into our consciousness and influencing our behavior without us even knowing about it. Rob Walker reports on a study in which subjects were more likely to choose a certain brand of bottled water after being shown photos of people drinking it, even though they weren't aware of having noticed the brand.   More

♦  Armani has signed Victoria Beckham to appear in the new campaign for Emporio Armani underwear. You'll have to wait until spring '09 to see the Mert and Marcus-shot ads. [WWD]
♦  He's not crazy, he's just, uh, spiritual: Elton John apparently only eats off Versace crockery because he believes "the designer's spirit lives in every plate." [NYP via Racked]
♦  Narciso Rodriguez doesn't talk about his recent split with Liz Claiborne, but he does share a bit about his forthcoming book which will be published by Rizzoli later this month. [stylefile]
♦  Finally! Nicole Richie's jewelry line is now on sale. [The Cut] More