New Company to Take Over Dozens of National Stores Outposts
Total Page：16
File Type：pdf, Size：1020Kb
NEWSPAPER 2ND CLASS $2.99 VOLUME 74, NUMBER 49 NOVEMBER 30–DECEMBER 6, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS New Company to Take Over Dozens of National Stores Outposts By Deborah Belgum Executive Editor After filing for Chapter 11 bankruptcy protection in Au- gust, National Stores has found a way to keep some of its stores open after announcing it was closing all of them. Second Avenue Capital Partners, a Schottenstein- family affiliate that is a finance company, said on Nov. 27 it closed a $20-million, asset-based credit facility to fund the purchase and ongoing working capital for a new entity called Fallas Stores. Fallas Stores will be purchasing 85 stores from National Stores during a bankruptcy-mandated auction, the company said. In October, National Stores said it was closing 184 of its stores, which operate under the nameplates Fallas, Fa- llas-Paredes, Factory 2-U and Falas in Puerto Rico. The new Fallas Stores will operate under the same model as the National Stores, selling discounted apparel and other merchandise and buying from the same vendors who sold National page 8 Black Friday Sees a Dip Over Last Year but Still Considered Strong By Andrew Asch Retail Editor While more than 165 million Americans shopped online or in stores during the Black Friday weekend—which now extends from Thanksgiving Day through Cyber Monday— the numbers were down by nearly 10 million shoppers from 2017. In 2017, some 174 million shoppers hit the malls or the Web to make purchases. This year, the National Retail Federation said the aver- age consumer spent $313.29 on gifts and holiday items dur- ing the five-day period. In 2017, they spent $335.47 during the same period. However, U.S. retailers are still forecasted to be headed into a robust season, said Bill Thorne, the NRF’s senior vice president of communications and public affairs, who was speaking on a Nov. 27 conference call with reporters. He noted that the 2018 holiday calendar features five week- Black Friday page 7 INSIDE: Where fashion gets down to business SM 2 3 shopping spree Retail theft survey ... p. 2 Shoppers hit the mall as soon as the turkey was eaten on Thanksgiving Day, extending Lolli lingerie ...p. 3 their buying through Cyber Monday, when they revved up their computers to buy online. AAFA awards ... p. 4 Trims, Accessories & Branding ... p. 6 Top row, from left: The Citadel Outlets and 2 Rodeo Drive in Beverly Hills Trims, Accessories & Branding Resources ... p. 9 Middle row, from left: Larchmont Village, Westfield Century City, Westfield Century City Bottom row, from left: Beverly Center, Rodeo Drive in Beverly Hills www.apparelnews.net 01,7-8.cover.indd 1 11/29/18 4:47 PM NEWS Organized Retail Crime Increasing in the United States In the past year, organized retail crime has vic- up to higher-priced items such as designer type of crime has been going on for as long percent of their sales will be returned this year timized 92 percent of retailers across the country, clothing, blue jeans, handbags, smart phones as there have been stores, the thieves’ sophis- but 8 percent of those items will be fraudulent. with Los Angeles taking the No. 2 spot, accord- and gift cards. tication has been growing, said Bob Moraca, The survey ranked the top 10 regions for ing to a recent survey released by the Washington, About 60 percent of merchandise stolen is the NRF’s vice president of loss prevention. organized retail crime in America. Coming D.C.–based National Retail Federation. recovered at places such as pawn shops and “These criminals find new ways to expand in at No. 1 was New York followed by Los Retail theft has increased by 7 percent flea markets or websites where the goods are their networks and manipulate the retail supply Angeles and Miami; Chicago and Houston over last year. Losses averaged $777,877 per being sold online, according to the survey. chain every day. The retail industry is fighting tied for fourth place. San Francisco/Oakland $1 billion in sales this year compared with Stolen gift cards have been recovered at on- this battle by upgrading technology, improving was fifth, followed by Atlanta; Baltimore; $726,351 in losses last year. line gift-card exchanges. relationships with local law enforcement and and Orlando, Fla. Northern New Jersey; Some 71 percent of retailers said that this Organized retail crime is defined as more taking steps such as tightening return policies, Washington, D.C.; Philadelphia and the Dal- kind of crime is increasing. Items often cen- than two people illegally obtaining retail but it is a never-ending battle,” Moraca said. las area tied for ninth place. Tied for No. 10 ter around easily stolen goods such as razors, merchandise through theft or fraud, accord- Return fraud is also a target for organized on the list were Seattle and Ft. Lauderdale, deodorant and laundry detergent and scale ing to Loss Prevention Media. While this retail crime. Retailers surveyed said that 11 Fla.—Andrew Asch Touché LA Rebrands as LA Collective to Support Local Fashion Culture After a 2015 launch that grew into a verti- garment-manufacturing industry drove cally integrated manufacturing operation for Singer to enter the business with his wife by activewear and athleisure clothing, Touché developing partnerships with active-minded LA has changed its name to LA Collective. celebrities and fitness professionals, includ- LA Collective, headed by husband-and- ing a collaboration named Touché LA x wife team Jaynee Silvers Singer and Karl Morgan Stewart with television personality Singer, still has 80 sewers and 53 seamless Morgan Stewart. machines inside its 60,000-square-foot com- The husband-and-wife team also launched plex in Vernon, Calif. a house brand named Vita LA. Additional The new company will remain manufac- partnerships include TLA by Morgan Stew- turers of activewear and athleisure—a busi- art; Ren Active by Alexis Ren, which was ness that yields a monthly output of 120,000 designed with the model; and Vita LA by units—but it is going to expand into new Anna Victoria, a line created with the noted categories, including swimwear, streetwear, certified personal trainer and fitness expert. shapewear and outerwear. “Our current house line is Vita LA, which “We are thrilled to announce the next step we launched about three months ago, and our in our journey as we scale the company,” next collection drops Dec. 10,” Singer said. Silvers Singer said. “LA Collective will be “We are actively understanding that house a game-changer for the American fashion brand while launching talent-based brands scene.” with celebrities, influencers and personali- A family legacy in the New York City ties from different entertainment sectors us- From left, Jaynee Silvers Singer and Karl Singer ing Vita LA as a collaboration pipeline.” reputation of its partners and the brands, LA At LA Collective, the re-brand was the Collective merchandise is rarely sold at dis- next business step to continue growing its count, creating a demand that brought the platform, online presence and e-commerce, company to this level of growth. but it remains a trusted incubator for col- “This expansion has always been on our laborations with different entertainment per- roadmap,” Singer said. “We’ve always had sonalities. Contributing to the local apparel the operational ability to do all categories in business is integral to the company’s growth fashion, but it was all about timing with us and remains at the forefront of its mission and teaming up with the talent that fit really of supporting the Los Angeles apparel-man- well into our story and a specific category.” ufacturing community. With its ability to produce goods quickly “We make everything in L.A.,” Singer at a domestic space, LA Collective averages said. “Our facility in Vernon houses our cut- a new release of apparel every five weeks. and-sew factory, warehouse and fulfillment Retail partners include Revolve, Blooming- as well as front office. We are looking to dale’s, Saks Fifth Avenue and New York bring back domestic manufacturing in a big City’s Bandier, where LA Collective will way by leaning into manufacturing and de- launch the new Holiday Morgan Stewart line signing in L.A. and taking inspiration from on Dec. 10 at the retailer’s Flatiron location. the L.A. culture.” At LA Collective, Singer also understands Driving Los Angeles manufacturing with consumer behavior is changing. With mil- the introduction of new brands is an enor- lennials enjoying greater spending power as mous undertaking that Singer views as an they age and Generation Z setting trends, the opportunity to grow the city’s fashion indus- company is able to feed the demands of its try, but he also looks forward to elevating audience by remaining selective about its re- established partner brands to the next level. tail bricks-and-mortar partners while recog- “For TLA by Morgan Stewart, it was our nizing “social media as the new storefront.” first collaboration. It grew so organically “The millennial consumer gets extremely but quickly at the same time. It developed impatient when it comes to shopping. Speed this cult-like following,” Singer said. “We’re to market, being able to offer something new excited to continue growing it, broaden our and fresh on a monthly basis, is important collection offerings and potentially go into to keep them entertained,” Singer said. “It’s new categories of fashion with her and build- hard to get brand loyalty out of a millennial ing out a lifestyle brand.” customer.” The established partnerships with enter- Wholesale pricing across all LA Collec- tainment personalities known for having a tive brands ranges from $32 to $98.