NEWSPAPER 2ND CLASS $2.99 VOLUME 75, NUMBER 2 JANUARY 11–17, 2019 THE VOICE OF THE INDUSTRY FOR 74 YEARS Swim Collective and Active Collective Offer an Opportunity for Brands to Plan for 2019 By Dorothy Crouch Associate Editor ANAHEIM, Calif.—During the Swim Collective and Ac- tive Collective shows held Jan. 7 and 8 at the Anaheim Con- vention Center, buyers and manufacturers from the swimwear and activewear industries met to plan their 2019 partnerships as the two segments become increasingly intertwined. Despite its smaller scale compared with the August event, this January’s show saw buyers placing orders for Immediates in the active and swim categories as vacationing ski-and-snow- board enthusiasts hit the mountains and hot tubs and retailers prepare for spring break. “When we started merging the shows together, it would be 40 percent crossover where now we’re closer to 70 percent,” said Rachel Nobles, the buyer-relations manager for Swim Col- lective and Active Collective, organized by Emerald Exposi- tions. “The January show is traditionally a little smaller than August. The active side has been consistently growing while swim is always larger in the summer, based on buying cycles.” Swim/Active Collective page 3 Top-10 Trends for keeping active Pre-Fall 2019 Active fashions and swimwear showed at Swim/Active By Sharon Graubard Contributing Writer Collective at the Anaheim Convention Center Pre-Fall collections are usually a great place to research emerging looks that will satisfy consumers’ hunger for new- ness while remaining approachable and wearable. Oversized sweaters are looking strong for the season, with long sleeves and oodles of knit fabric. That is translat- ing into longer blouses with that “tunic look” becoming so popular to wear with blue jeans or dress pants. When it comes to pants, the cropped bottom and flares are making a strong run around the fashion block. And A-line midis are taking a page from the 1970s fash- ion book to wear with just about anything in your closet. Take a look at the Top-10 trends that will be very popular for pre-Fall 2019. Pre-Fall Trends page 6 INSIDE: SM Fashion Star Simon Spurr to Lead 7 For All Mankind’s Design Where fashion gets down to business By Andrew Asch Retail Editor glaring opportunities in ready-to-wear and creating a pres- ence as a more cohesive lifestyle aesthetic.” Simon Spurr, a seasoned fashion designer who has worked His first collection for the brand will be introduced for the at Ralph Lauren, Tommy Hilfiger and Kent and Curwen, Spring 2020 season. has been named global creative director of Los Angeles– Tim Baxter, the chief executive officer of Delta Galil Premi- headquartered denim brand 7 For All Mankind. um Brands, said that Spurr had the right fashion vision, entre- The award-winning English designer will move to Los preneurial spirit and brand experience to lead the denim brand. 2 6 Angeles to develop the collection beyond its premium-denim Delta Galil, the parent company of Delta Galil Premium base. Brands, bought 7 For All Mankind, Splendid and Ella Moss Changes at Charlotte Russe ... p. 2 “It will be a collection-driven denim brand,” Spurr said in 2016 for $120 million. Retail sales ... p. 2 in a telephone interview. “Denim will always be paramount “Importantly, Simon also has a strong directional per- New Lines ... p. 3 for us. It will always be the spine of the brand. But there are Spurr page 2 Resource Guide ... p. 10 A CALIFORNIA APPAREL NEWS SPECIAL SECTION www.apparelnews.net INSIDE Textile Preview and Resource Guide 01-3.cover.indd 1 1/10/19 5:27 PM Texollini NEWS Could Charlotte Russe Be Up for Sale or Headed for Bankruptcy? After restructuring its debt by more than Last year, Charlotte Russe reduced its commerce site. sert, was founded in 1975 by three brothers— 50 percent last year, Charlotte Russe Hold- term-loan debt from approximately $214 Over the past several years, Charlotte Dan, Frank and Larry Lawrence—who grew ing Inc. could be up for sale or headed for million to $90 million, which in turn re- Russe has seen increased competition from up in the retail business in Brooklyn, N.Y. They bankruptcy restructuring. duced its annual interest expense by nearly other retailers including Forever 21 and oth- opened their first store in Carlsbad, Calif. The According to reports in the Wall Street half. The loans’ maturity date was extended er mall-based stores that target young female concept grew slowly over the next 20 years Journal, the decades-old, San Diego–based with term lenders to February 2023, with the customers. into a 35-store chain and was acquired in 1996 retailer is considering a sale or filing for lenders receiving 100 percent of Charlotte Charlotte Russe has been led by Jenny by the investment firm Saunders, Karp & bankruptcy protection. Reportedly, the re- Russe’s equity. Ming since she became the chief executive in Megrue and Bernie Zeichner, who at the time tailer has hired Guggenheim Securities to At the time of the loan reduction, Char- 2009, taking over from Mark Hoffman, who was Charlotte Russe’s chief executive. explore strategic alternatives. lotte Russe operated 532 mostly mall-based left after some merchandising missteps and The company went public in 1999, trad- Charlotte Russe executives did not im- stores in 45 states and Puerto Rico. A few declining same-store sales. She previously ing on the NASDAQ market until the com- mediately reply to inquiries about a possible years earlier, Charlotte Russe expanded to had led Old Navy as its president. pany’s debt was acquired by lenders. sale or bankruptcy. include Peek Kids, with 11 stores and an e- Charlotte Russe, named after a French des- —Deborah Belgum Hybrid Apparel Names New CEO Hybrid Apparel, the Cypress, Calif., Dillard’s, where he led the creation of a pri- and further strengthen Hybrid’s relation- Two years ago, Hybrid Apparel acquired company that does all kinds of casual cloth- vate-label brand. He later worked in product ships with studios, licensors, retailers and childrenswear maker Evy of California, ing, announced it has a new chief executive. development and led the entire merchandis- other partners. which used to be headquartered in downtown Taking over the top position at the more- ing organization for Wilson’s Leather, then In 2014, Altamont Capital Partners in Los Angeles. Hybrid, through its acquisition than-20-year-old company is Bill Hutchison, transitioning into the AM Retail Group to Palo Alto, Calif., made a strategic investment of JMJD Ventures, also owns Junkfood who joins the company on Jan. 14. He will lead merchandising, marketing and design. in the company. Clothing in Culver City, Calif.—D.B. be responsible for all of Hybrid’s business “I am thrilled and beyond excited to join and will report to the board of directors. Hybrid Apparel,” Hutchison said in a state- Hutchison previously was at the AM Re- ment. “Hybrid is an industry leader, and I RETAIL SALES tail Group, where he was president since look forward to working with the talented 2011, leading the organization’s retail divi- and experienced team in building a best-in- sion, which included Wilson’s Leather, class organization.” Retail Sales in December See Mixed Results G.H. Bass, DKNY, CK Performance and Jarrod Dogan founded Hybrid Apparel in Karl Lagerfeld Paris. 1997 in the back of a print shop in East Los December’s business is a crucial part of the ber and December were up only 0.7 percent. During his time there, he overhauled the Angeles. It quickly expanded from a small T- holiday season’s sales, but for some retailers The denim-focused retailer The Buckle brands’ organizational structures and go-to- shirt supplier to a full-service apparel house, sales dipped from last year. Inc. saw its same-store sales for the five-week market approaches, growing revenues from designing and distributing branded, licensed Macy’s Inc., the country’s largest depart- period ending Jan. 5 slide 0.2 percent while $100 million to more than $500 million in and private-label apparel to a diverse retail ment-store chain, said soft sales undercut its net sales for the period were up 6.7 percent to seven years through incremental growth and base. holiday business during December. $134 million. acquisitions. Dogan was the chief executive until last “The holiday season began strong—particu- Meanwhile, L Brands Inc. reported its Hutchison began his career in merchan- year. He now works with the company’s larly during Black Friday and the following Cy- same-stores sales for the month were flat, and dising and sourcing in the buying office at board of directors to focus on acquisitions ber Week—but weakened in the mid-December net sales dipped to $2.477 billion from $2.5 period and did not return to expected patterns billion the previous December. until the week of Christmas,” said Jeff Gennette, Action-sports retailer Zumiez Inc. had Macy’s chairman and chief executive officer. more-positive results with same-store sales Growth for Macy’s was seen in categories edging up 4.9 percent for the five-week pe- that included outerwear and activewear, but riod ending Jan. 5. The action-sports retailer J the hangers you were looking for... that was counteracted by soft performance reported its net sales for the five-week period ERIAN in women’s sportswear and fashion watches. were up 2.9 percent to $164.6 million com- Macy’s said its same-store sales for Novem- pared with last year.—Andrew Asch He worked there from 2005 until 2012, when Spurr Continued from page 1 he said he resigned after disagreements with spective on how we can modernize the brand his business partners.