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I read that this morning--what a crummy, terrible deal! I do hope that there is some cosmic justice and their new shoe lines do really well (and their nemesis falls flat on his face).
This happens so often to smaller designers - happened it Daryl K's original line, too. The garment industry is cutthroat! I remember SM's original store in Nolita, when I coveted everything!
What heartbreak for SM. I can't imagine how frustrating it would be to have my name attached to an artistic vision that I hated. I can't wait to see how they reinvent themselves, because they will. I'm setting a reminder to look for Pied Juste at Anthropologie and 7B.