Rumors of the demise of downtown fashion label Heatherette may have been slightly exaggerated. Former in-house publicist Lysee Webb, who is now with Paper magazine, tells us that designers Richie Rich and Traver Rains did indeed "amicably" part ways with their financial backers at the Weisfeld Group, but are now "close to signing a very exciting deal with a new investor." She declined to name the new investor, but said that negotiations thus far have been "encouraging." If things go to plan (a big if), Heatherette may even be back causing mayhem in the Bryant Park tents next September.

In the meanwhile, Webb adds that "Richie is writing books, making music, and opening bars, and Traver is pursuing some side projects in LA." They are even looking into licensing their brand for a "line of shoes, bags, and fragrances," which is obviously a lot easier than designing a line from scratch and probably a whole lot more lucrative. In the immediate future, Rich is co-chairing this AIDS charity event with aspiring literary giant Lydia Hearst.

So maybe it's more like an informal hiatus than an official going out of business? Anyway, If things don't pan out with the mysterious benefactor, at least they have some contingency plans!