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description=Author of three New York Times bestsellers, Michael Gross is recognized as one of America s most provocative writers.;

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ia list who owns a folk and indian art gallery in california and her father tully rector a onetime tv commercial director and horseman have both been married and divorced more than once according to a friend of the family rector s parents both declined to comment her first serious romance was with sam edelman who made ralph lauren shoes under a license and whose family once owned fleming joffe the alligator crocodile and lizard skin company i remember the night ralph offered her a job he says it was at the opening of a saks boutique she d just graduated from f lt she went to work in lauren s design studio in 1979 kelly had very ralph lauren style a lauren employee says clean fresh kind of preppy in this business when you see someone with style you say gee work for me at the studio though the co worker says rector didn t make major contributions she was looking for a life someone to take care of her she didn t seem to be a career girl rector s next boyfriend christopher maytag great grandson of the founder of the home appliance company died in march 1987 of chronic intravenous narcotics use he had been found semi conscious in a lower east side hallway rector also dated cary leeds a yale student and professional tennis player who is the son of laurence leeds until recently the chief of manhattan industries the company that makes perry ellis fashions after leeds she went out with john leffler a successful musician who works in advertising while they were dating rector got a new job assisting calvin klein she was unhappy at ralph and wanted to change jobs says a key employee of klein s at the time klein s first impression wasn t overwhelming the last thing i need is another pretty face with an opinion he told the employee after meeting rector but a studio slot stayed open and early in 1981 she was chosen to fill it at first rector was known as the skin girl klein would hold fabric against her wrist to test color then all of a sudden she had influence says a colleague studio gossip had it that warren beatty was indirectly responsible for her ascension they met at a party a friend of kelly s says beatty invited her to l a she flew out for the weekend i don t think sparks flew they did though when klein learned where rector had been he was jealous recalls a former assistant in the end he wanted her for himself eventually rector was given the title of design director i saw her as a cross between morale booster and buffer says a designer who reported to her then she was the regent she d make jokes she d get information she and klein appeared to be lovers when she spent the night we knew says the designer she d come in in the same clothes it was like a press release in a funny way the relationship was much discussed in the studio a day at calvin klein without rumors was like a day without sunshine laughs one ex employee and rector s promotion caused jealousy we all had a crush on calvin another ex employee says no human being ever treated me like calvin did says one woman he believed in me he stimulated me he taught me he still has me even today when i hang up from talking to him i m high he could call me in the middle of the night and say i need you and i d drop everything it frightens me i d do anything for him one male former assistant describes a feeling of supernatural power emanating from klein he s extremely seductive and sexy and he knows it and he uses it you feel like a little lamb in his lair klein has a record of generosity toward favored friends and employees he paid rent and later funeral expenses for one of his early mentors baron nicolas de gunzburg an aristocratic former vogue editor one early employee says after weinberg s fashion house failed klein hired him in 1978 as a consultant and later as design director for calvin klein jeans then when weinberg grew too ill with aids to work klein kept him on half salary klein s unpublicized largess was also extended to giorgio di sant angelo who recuperated from surgery last year in a house klein had rented in palm beach on the other hand some klein employees left abruptlyand not always happily frances stein for example who d become a top aide in 1976 left suddenly a few years later in 1985 klein s longtime personal assistant known among the staff as the english nanny was thrown away like a used kleenex after taking a leave of absence to attend to personal problems says one of her friends through stein s era and after primary design responsibility was in the hands of zack carr who d arrived in 1975 carr was calvin klein an ex employee says but carr left in 1984 at about the time that rector was promoted to design director in the mid eighties klein had two sensational sex and advertising driven successes underwear which grossed 70million in 1984 the year after it was introduced and obsession which was released in march 1985 still there were ample reasons for klein to be concerned about his image for one thing the health rumors persisted despite the affair with rector what s more because of the puritan purchase klein and schwartz were personally on the hook to manufacturers hanover says corky newman the worst of the jeans crash occurred after the acquisition adds fred mccarthy an executive of drexel burnham lambert the investment house it went from jeans everywhere to jeans nowhere the banks were somewhat nervous klein and schwartz needed long term financing to retire the onerous short term bank debt a former klein employee says that at dinner one night klein told his friend barry diller about the loans then the chairman of paramount pictures a subsidiary of gulf western industries which through its kayser roth division had bought klein s women s underwear business diller was alsoaffiliated with companies that bought issues from drexel the pioneer of the high yield junk bond business in response to klein s plea diller made a call the employee continues within days calvin was meeting drexel in 1985 klein and schwartz attended drexel s so called predators ball where companies seeking financing made presentations to investors like guy dove iii a former drexel employee dort cameron who works for the bass family of texas and industrialist carl lindner that year drexel placed 70 million in high interest high risk notes for calvin klein industries there were two types of notes sold senior notes paying 137 a percent interest which come due in 1993 and subordinated notes paying 145 s percent which are due in 1995 dove s atlantic capital corporation bought 4 million of klein s notes the bass investment limited partnership anted up 15 million and lindner s great american insurance company chipped in 5 million david paul chairman of florida s centrust savings bank kicked in 20 million and became a director of calvin klein mccarthy says there has been limited movement in the notes since their original issuance schwartz has attended several more predators balls mccarthy says drexel was a shareholder in some of the investing companies and in addition to its 3 3 million fee came away from the deal with an option to buy an equity stake 1 1 a percentin calvin klein industries should the company go public that was its plan newman says but in 1985 a stock offering was abandoned when drexel gave them the real price klein and schwartz could realize for the company another former klein executive says calvin recoiled it was less than he expected newman confirms that the plan was shelved another problem concerned klein s once successful men s wear licensee bidermann industries key employees were leaving the line wasn t doing well one former design staff member believes rector s preppy influence on klein s personal style hurt the collection all of a sudden it was rep ties and plaid suits he d loved being boyish then he became this proper gentleman it was as though he was denying everything that had gone before festering disputes arose between klein and the manufacturer bidermann s 1977 license with klein had been for all his men s clothes but when puritan won the jeans license in 1978 it received a sublicense to make a few specific items for men jeans and western shirts for example there were immediate disagreements says a former klein executive calvin s weight came down on puritan s side displeased with the quality of bidermann s manufacturing he began withholding necessary approvals for its designs and finally refused to work a former bidermann executive charges in 1986 lawyers for bidermann began investigating calvin s lack of attention attendance and cooperation says a bidermann designer in the fall of 1986 it became obvious that klein was under great stress in september bergdorf goodman introduced his exclusive couture collection at a benefit dinner full of society people steve rubell had helped organize the event to restore the pulitzer fountain i d never seen a man so nervous a staffer says of klein he d had a lot of different substances to calm down during the dinner that followed the show klein shared a table with rector the evening s chairman nancy kissinger two pulitzers vogue s editor grace mirabella and bernadine morris of the times among others in a scene that was becoming common klein drank most of a bottle of vodka that had been placed before him nine days later klein married rector in the office of the mayor of rome they shared their honeymoon in italy with design assistants who d accompanied them on what was officially a fabric buying trip staffers even joined the newlyweds when they went out at night back in new york the new mrs klein disappeared from the studio says a former assistant she started going to the hamptons the mood in the studio was completely different much nicer for the line the assistant says it was like a rebirth because the attitude was no longer let s design kelly s personal wardrobe at the end of the year grace coddington a british vogue editor replaced kelly at a reported six figure salary klein who over the years had become more an executive editor than a day to day designer further removed himself from the design process kelly klein however still had a role to play besides riding her beloved horses her husband told an executive of a new york specialty store that his marriage had opened up new publicity opportunities for his company he proved his point soon after when he bought kelly a pearl necklace and ring from the duchess of windsor s collection in january 1987 the kleins made their first social splash as a married couple at the council of fashion designers of america s awards dinner in february klein bought property worth almost 6 million in east hampton he d sold his fire island and key west houses the year before he even told reporters that he d stopped drinking and smoking for his new wife klein apparently fell off the wagon coincidentally with another round of business reversals staff changes continued unabated the turnover is quite remarkable says an outside contractor who has worked on klein s fashion shows for several years every season there d be different people there says another former designer i wondered how i survived in april klein s dispute with bidermann was settled when he bought back his license for a reported 13 million then on the first monday in june calvin klein industries president corky newman resigned the same day the eve of a fabricbuying trip to europe several designers and assistants who d been hired to create an in house men s line were fired the next day edward m jones iii a former executive of the klein division at bidermann resigned a new job as president and international licensing director of klein s moderately priced classics division it was a lousy week but things got worse last october the sale of calvin klein industries to another drexel financed company triangle industries a container manufacturer fell through on the day the stock market crashed klein grew terribly depressed and started taking valium all day long from nerves says a friend in november klein s women s spring ready to wear collection was roundly panned a shift of emphasis toward evening dresses from the simple daytime sportswear that had always been klein s forte didn t go down so well in middle america according to the head of one prestigious big store chain coddington s key designer steven slowik was fired after that show a week later classics which was unprofitable was abruptly shut down once again klein rumors began ricocheting around new york some were about business schwartz has denied it but a top money manager says the klein company is still for sale if you want to buy it there was also talk that klein and schwartz were trying to buy minnetonka industries their cash rich fragrance and cosmetics licensee by late last year the two men had bought over 12 percent of the company s stock and filed documents with the securities and exchange commission stating that they might seek control of the highly profitable company subsequently minnetonka adopted measures to make a hostile takeover difficult but denied the actions were aimed against klein and schwartz whose ventures generate most of minnetonka s revenues mostly though the gossip was about the kleins marriage friends of kelly s were concerned particularly those who believed as one puts it that there was business stuff behind it at first when she d started dating klein this friend had asked about her life with him she answered that things were fine his past didn t bother her the friend says these days another friend reports kelly will sometimes shake her head and say it s really hard i don t know how she s coping but she s a big girl she knew what she was getting into at the heart of the rumors were the facts that klein was frequently seen in hip nightspots with rubell and his crowd and that the kleins maintained separate apartments as they searched for a new home klein has a large contemporary penthouse he bought from the composer jerry herman on central park west kelly was a few blocks away in an oldfashioned duplex she d bought from the model christie brinkley their first attempt to get a place together failed in january 1987 when the nearby san remo co op board refused klein s bid to buy the producer robert stigwood s penthouse though kelly put a good public face on it calling the rumors funny privately she was upset it s mind boggling patricia burnham a realtor friend of kelly s says of the rumor mongering it s so unfair last december burnham quietly found klein a 6 95 million townhouse on east 76th street it belonged to an offshore corporation owned by a man involved in a divorce there were lots of liens and lawsuits on it burnham says but knowing how much kelly liked it klein hired a whole team of lawyers and cleared up the suits you ve never met a husband more adoring than calvin klein burnham concludes the feeling is apparently mutual kelly is the best thing that ever happened to him a friend of klein s says maybe she loves him for all the wrong reasons but she loves him agrees ...