It looks like rectangles of pleated fondant around the bottom long enough to go under the 2nd tier and drape down. If you cut rectangles of fondant you can lay it over 3-4 skewers to help form the pleats (like a swag). Then lift it off and work the pleats into folds secure on cake and do your final touch up to make the pleats look the way you want. HTH sorry if it wasn't too clear I was unable to attach a pic.