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$2.99 VOLUME 70, Number 33 august 1–7, 2014 The Voice of the Industry for 69 years

technology Centric’s New Investment to Fund China Expansion

By Andrew Asch Retail Editor

Centric Software Inc. announced on July 29 that it re- ceived $24 million in Series D capital funding. The investment will help the Los Gatos, Calif.–based product lifestyle management (PLM) software provider to build a subsidiary office in China and to continue develop- ing its Centric 8 software suite. Centric has already worked with fashion companies such as Balenciaga, Christian Louboutin, DSquared2 and Proenza Schouler. China’s retailers are beginning to develop a need for PLM, said Chris Groves, Centric’s chief executive officer. “We did a market sizing. There are 30,000 prospective cus- tomers in China,” he said. ➥ Centric page 2 Trade Show Report Scouting the Denim DENIM INTEL: The Kingpins denim trade show recently celebrated its 10th anniversary. At the recent Los Angeles show, attendees viewed the latest denim developments from an international mix of fiber makers, mills, trim suppliers, factories, and wash and finishing specialists. Market at Kingpins LA By Alison A. Nieder Executive Editor Trade Show Report The July 30–31 run of boutique denim trade show Kingpins at the Cooper Design Space in Los Angeles drew designers Colombiamoda Highlights Apparel Production, Fashion in Colombia and representatives of brands and retailers from Levi Strauss & Co., Nordstrom, Nasty Gal, Uniqlo, Lee, Lucky Brand, By Deborah Belgum Senior Editor exactly what they were advertised to do. You almost expected Volcom, Alexander Wang, Paige and Current/Elliot, who Colombian actress Sofia Vergara to make an appearance. turned out to scout the offerings from an international mix of MEDELLÍN, Colombia—Colombiamoda, the country’s Even though the sexy actress from ABC’s “Modern Family” denim mills, factories and trim suppliers. largest fashion fair, held every July at the Plaza Mayor exhibi- was nowhere to be seen, there was a booth selling distribution First-time exhibitor Amhot International Inc. was show- tion center, had a certain disco vibe during its most recent July rights and franchises for the Vergara label, which includes ing selvage denim developments and yarn-dye shirtings from 22–24 edition. Everywhere you went in the six gigantic pavil- clothing, shoes, handbags, sunglasses and accessories. Japan. The Osaka, Japan–based company has worked with ions packed with booths, lively music blasted from speakers. Colombia is a powerhouse of apparel production in South several West Coast denim brands for a long time, company Models in tight jeans and curvy outfits enticed buyers to America, right after Brazil. And the country is fighting to keep representative Jun Minami said, but this season it decided to booths. With lingerie being Colombia’s second-largest export— its apparel and textile industry vibrant. Every year, Colombia- exhibit at the show, as well. after denim pants—an entire pavilion was devoted to the sector. moda gets bigger with more pavilions and elements to it. This At the Kurabo Denim booth, Kurabo Director Stanley It was filled with shirtless male models showing off their six- year there were 29 fashion shows, highlighting the styles of ➥ Kingpins LA page 15 pack abs and female models displaying body shapers that did ➥ Colombia page 16

Fashion Law 101 Inside: SM Loyola Hosts First Summer Intensive Fashion Law Program Where fashion gets down to business By John Irwin Editorial Manager both lawyers and fashion-industry professionals further spe- Launching a fashion business—or running an already cialize their knowledge of how the law affects the industry’s successful one—is hard enough. The last thing a designer business operations, the Fashion Law Project hosted its first- or executive needs is to run into trouble on the legal end, but ever Summer Intensive Program July 24–Aug. 1. with the industry becoming increasingly global—and, as a About 50 percent of the attendees were attorneys who 11 16 result, laws from not just the United States but from coun- work with the fashion industry, said Staci Jennfier Rior- Technology ... p.p. 2, 17 tries around the world coming into play—an understanding dan, director of the Fashion Law Project, and the other half New Lines ... p. 6 of legal nuances is becoming more important than ever. was split between designers and industry executives. Rior- Industry Focus: Finance ... p. 12 With that in mind, Loyola Law School in Los Angeles dan’s goal is for the designers and executives attending to formed the Fashion Law Project, an academic center dedi- come away with an increased awareness of the legal issues Las Vegas Resource Guide ... p. 20 cated to the unique legal issues facing the fashion industry, involved—or, just as importantly, the potential issues—with both domestically and internationally. In an effort to help ➥ Law page 18 www.apparelnews.net

01,2,15-19.cover.indd 1 7/31/14 8:21:25 PM news Madison’s Melrose Store Closes in Real Estate Deal After a 16-year run, prominent Los An- 8115 Melrose Ave. In 2008, he planned to In June, Goldstein closed Madison’s loca- Madison has sold fashions from well-known geles boutique chain Madison shuttered its lease out the space, but rents dived after the tion in Westlake Village, which is a well-off designers and labels such as Alexander Melrose Avenue location on July 26, the com- recession. So he took it off the market. community straddling the border between Wang, Twelfth Street by Cynthia Vincent, pany’s second store closing in two months. Madison’s store on Melrose Avenue opened Los Angeles and Ventura counties. He said Marni, Valentino, Lauren Moshi and Iro. Madison founder Mark Goldstein said his in November 1999 under the nameplate of the Westlake store never performed to his ex- Madison opened a men’s shop at its West small retail chain is still profitable, but the Emma Gold. The store focused on emerg- pectations, so he closed it. Third Street location in August 2013. Melrose location was too close to his flagship ing fashion lines that made high-end pieces. For the near future, he said, he has no Madison has been a leading Los Angeles store on Third Street near Robertson Boule- Goldstein felt the model didn’t work well, so plans to open more stores. Rather, he hopes boutique chain for more than a decade, but vard. Now that retail rents are making a come- he converted it into a Madison store. to strengthen business at his remaining bou- Goldstein admitted that competition is be- back, he has rented out the location he owns But later he felt the store was poorly lo- tiques, which include the flagship, a location coming fiercer. to a “major tenant.” cated for his chain. The company’s headquar- at 1013 Swarthmore Ave. in Los Angeles’ “Our vendors are opening boutiques. However, he declined to name the tenant ters is located at its nearby boutique at 8745 wealthy Pacific Palisades enclave, as well as There is tons of online competition. All the moving into the space, located across the W. Third St. “We always felt that the Melrose boutiques at the Malibu Country Mart in major NY independents have opened in LA, street from the pioneering Fred Segal bou- location was a bit close to what was then our Malibu, Calif., and another location at Brent- thus a saturation of most products in the mar- tique compound. Robertson location, now Third Street at Rob- wood Gardens shopping district at 11677 ketplace. We are still very solid and profit- Goldstein has been waiting for retail lease ertson, and that the two locations cannibalized San Vicente Blvd. in Los Angeles. able, but, yes, it is tougher then the good old rates to rise so he could rent out the store at each other a bit,” he wrote in an email. The retailer’s forte is women’s fashions. days!”—Andrew Asch

The China gambit follows the develop- “There’s not a big PLM presence in China, referring to other prominent back-office and Continued from page 1 Centric ment of a European subsidiary. The privately but things are changing quickly.” supply-chain software, enterprise resource Leading the Series D financing was Fung held Centric used its last round of funding, Domestic apparel retail is becoming planning, supply-chain management and Capital and Silver Lake Waterman, in- $19 million in 2011, to expand in Europe. Of more competitive in China, and the most customer relationship management. vestment groups that focus on fashion busi- his new investors, Groves said, “These are efficient companies will be the ones that Seung said that he developed an interest nesses. Fung Capital is an investment arm of people who can add real value to our busi- thrive in China’s future market, Seung said. in Centric because he believes that it is more the Hong Kong–headquartered Fung family, ness every day.” Centric has not worked with As Chinese companies become more so- flexible than other PLM software. “I have whose holdings include Li & Fung Ltd., Li & Fung in the past, but Li & Fung Group phisticated, they will need programs that extensive experience with software,” Seung which is said to be one of the world’s largest is considering Centric PLM for some of its can manage their growing businesses. “To said. “It is notoriously tough to reconfigure suppliers of toys and clothes to retailers such future needs, he said. manage complexity, you need a tool like once they are in place. Centric is very flex- as Walmart and Target. John Seung, a partner in Fung Capital, this,” Seung said. “Centric’s PLM does ev- ible.” Silver Lake Waterman is the growth capi- will have a seat on Centric’s board. He also erything from concept development to store Centric’s future expansion might entail tal division of Silver Lake, a private-equity spent a career with a front-row seat to the management.” offering the Centric 8 suite of programs to group. In December, it partnered with Wil- growth of retail technology. He served as Centric is on the right path, said Tony mid-level businesses, Seung said. It also liam Morris Endeavor LLC to acquire an chief information officer to Li & Fung USA Zhang, president of Platform, a Chinese will develop more mobile apps, Groves said. ownership stake in IMG, the producer of from 2002 to 2006. Fung Capital invests in company with a Los Angeles office. “PLM is “We’ve been the leader for mobile applica- Mercedes-Benz Fashion Week, the circuit business-to-business technology companies, becoming a hot software in China now,” said tion for the market. We want to push innova- of high-end designer runway shows. Oak which enable omnichannel retailing and sup- Zhang, who has no business dealings with tion farther.” Investment Partners and Masthead Part- ply-chain efficiency, he said. Centric. “More and more companies want Centric’s revenue grew by 80 percent ners also participated in Centric’s Series D “It’s for all of the right reasons,” Se- to have it. But the challenge is how to inte- since 2013, Groves said. However, he de- financing round. ung said of Centric’s Series D investment. grate it with ERP, SCM and CRM,” he said, clined to quantify the company’s revenue.● Nordstrom Expanding Online and With Bricks-and-Mortar

Nordstrom Inc. is busy laying down how much it was paying for the site, started plans for a new outlet store in Orange Coun- five years ago in Chicago by Brian Spaly, ty while buying an e-commerce site that ca- who founded online men’s retailer Bonobos ters to men. while a student at Stanford University. The Seattle-based retailer said it plans to The retailer said the men’s market is one open a Nordstrom Rack, its off-price con- of the fastest-growing sectors of retail, and cept, next year at The Center at Rancho Trunk Club aligns with Nordstrom’s priori- Niguel in Laguna Niguel, Calif. ties of giving super customer service, fash- The store, which should be open in the ion, relevance and a seamless shopping ex- spring, will occupy a 29,500-square-foot perience. In 2011, Nordstrom purchased Los space once leased by Loehmann’s, which Angeles–based “flash sale” site HauteLook went bankrupt last year and reopened as an to branch out into the e-commerce world. online store. Trunk Club provides a free online stylist The new Nordstrom Rack will be down service with free shipping. Members keep the street from a Nordstrom store at The what they want and send the rest back with a Shops at Mission Viejo and become the pre-paid shipping label. seventh Nordstrom Rack in Orange County. “What Trunk Club is doing in the person- Currently, there are six full-price Nordstrom al styling space is a natural extension of our department stores in Orange County. core business,” said Erik Nordstrom, presi- The retailer has been aggressively rolling dent of Nordstrom Direct. “This acquisi- out Nordstrom Rack stores across the country. tion is reflective of how we want to move With merchandise selling for 30 percent to 70 quickly to evolve with customers by finding percent off regular prices, it has been a popu- more ways to deliver a great shopping ex- lar shopping spot for families on a budget. perience.” Nordstrom’s e-commerce sales have Trunk Club will continue to operate in- also been extremely robust, which is why dependently and focus on its core business, the company announced it will be buying Nordstrom said, while leveraging the re- Trunk Club, an online personalized cloth- tailer’s capabilities and resources to scale its ing service for men. The retailer did not say business.—Deborah Belgum

For these stories: check the web • Top Womenswear Executive Resigns from PacSun ApparelNews.net • Mansion Trade Show to Debut in Las Vegas

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Advanstar.indd 1 7/31/14 8:04:36 PM news Fashionfaces Smith, Uner to Relaunch Spotlighting the industry’s innovators and influencers FashionWeekLA.com Don and Nick Nunnari: Los Angeles Fashion Week has been down to a week. It won’t be a month,” criticized throughout its history for not at- Smith said. tracting enough buyers and not producing The site also will offer a space where at- Merchant Factors’ enough shows for high-profile designers. tendees can register for shows and get in- For Kelsi Smith, director of Los Angeles formation on events. It also will offer public Family Affair Fashion Council, a community organiza- relations and production services to eligible tion for fashion designers, what the fashion productions. Entrepreneurs will charged for Don Nunnari, executive vice president and manager of industry leader Merchant Factors’ week needs is better organization. the public relations and production servic- Los Angeles office, met his wife, Maureen, when both were working for United Factors in the On July 30, Smith announced that she es. The entry price point starts at $1,000. 1970s. No surprise, then, that Don’s oldest son, Nick, now a vice president, joined Merchant will partner with Jen Uner to relaunch the Mike Vensel produces the prominent Factors’ ranks several years ago. Or is it? Nick, a promising college baseball player, had found his FashionWeekLA.com service. It will offer Concept LA Fashion Week shows during ideal job in sports TV. Or had he? The pair of factors sat down to discuss the notion that twists a calendar of events that Smith and Uner LA Fashion Week. He has listed his events of fate and finding one’s path can be a family affair. hope will tame the often sprawling fashion at FashionWeekLA.com in the past. He did week schedule. “There is a need for a united not anticipate big changes coming from the Last time we interviewed a father/son entrepreneurial clients, very creative. I have, front,” Smith said. “People will understand service. “Better organization always helps, combo, they said they worked well together and it’s been great. because they were in different states. How’s that there is no one official LA Fashion but I think over the past few seasons people How was the transition for you, Nick? it going for you? Week, but there is no reason why we can- have come to know the major players and N.N.: The apparel industry hadn’t been not provide a united front while remaining how to find out about shows. I am not sure Don Nunnari: We’re in the same office, an interest of mine. I didn’t know if I could autonomous.” how what they are planning to do will im- less than 50 feet apart, I would say. From my relate to them. But I really like the people perspective, it’s going great. The upcoming FashionWeekLA.com pact the calendar or other shows,” he said. I’ve met along the way, and I like having my Nick Nunnari: I agree. I went in not will provide free listings for runway shows Smith also announced that her upcom- own portfolio of clients I deal with on a daily knowing what to expect, but we’re going provided that producers meet certain stan- ing Los Angeles Fashion Council’s Los An- basis. I’ve enjoyed watching them grow. I’ve on three-plus years now, and the working dards. Events must fall into a one-week pe- geles Collections shows will run Oct. 7–9 networked not only with people from the relationship has been fantastic. riod, Oct. 6–12. Otherwise, it will not be and will partner with Maker City LA for factoring world, CPAs, attorneys, bankers, considered a fashion week event. Instead, shows at The Reef, formerly the LA Mart, What’s the short form of how every service provider you can imagine, but with people my age that I will those listings might be listed as off-market a showroom building at 1933 S. Broadway you both got into the factor events. “It will narrow LA Fashion Week in downtown Los Angeles.—Andrew Asch business? be doing business with for years. D.N.: When I came out here from the East Coast after What’s the best piece of school, I started working for advice you gave him, Don? City Chic to Roll Out California Stores a retail clothing chain. Just by D.N.: You don’t know coincidence, it was owned by a anything, and never stop large textile company that also City Chic, an Australian retailer of wom- “We’re very excited to launch in the U.S.,” asking questions. I still learn owned United Factors, then en’s plus-sized fashion, opened its first Ameri- Ryan said. “City Chic offers the American every day, always something the largest factor in the U.S. I can store Aug. 1 at the Westfield Culver City woman an original experience as we know new every day. Overcome any fell into it from there. I did not retail center, located off a busy stretch of the there is a gap in the market for fashionable, fear of asking a question if you know what factoring was. But don’t understand something. San Diego (405) Freeway. sexy plus-size designs.” I learned the business going The good thing about Nick, he The store in Culver City, Calif., will be The vertical retailer will offer its private- through the whole process, the has a great personality and he the first in a roll-out of six City Chic shops label looks featuring denim, lingerie, trendy whole gamut. learns quickly. Having a good in Southern California, said Phil Ryan, City fashions and special-occasion dresses. Since N.N.: For about five years foundation with education is October 2013, City Chic has been available in after college, I worked in the Like father, like son: Don Chic’s president. The retailers other stores are important, but being able to sports TV and entertainment and Nick Nunnari share their scheduled to be opened in Brea, Glendale and the United States at Nordstrom’s e-commerce think on your feet is important industry, and I had spent three love of factoring. the Los Angeles suburb of Northridge, as well site (http://shop.nordstrom.com). City Chic because this is a very faced- years at Fox Sports. As a big as at the Westfield Mission Valley in San Di- runs 100 doors located in Australia, New Zea- paced industry. sports fan, those were dream ego and the Galleria at Tyler in Riverside. land and South Africa.—A.A. jobs of mine. In 2011, there Nick, what’s the best piece of advice your was an NFL strike and a lockout, and the NFL dad has given you? Network couldn’t guarantee jobs. We were on a week-to-week freelance basis. I had a N.N.: Definitely to ask as many questions CalendarCalendar baby girl on the way, and I had to make some as possible. There’s no such thing as a dumb question; that’s the only way you will learn. tough career decisions. Los Angeles Try to take something away from every Aug. 2 Aug. 5 Through Aug. 6 So you went to your folks. experience, every meeting. Trust your gut as Westcoast Trend Show DG Textile Expo Fabric & Trim well. That was key to my growth and learning. Embassy Suites, LAX North Imprinted Sportswear Show Show D.N.: He spoke with his mother about it, Los Angeles Las Vegas Convention Center Hotel Pennsylvania which was smart. Did you know anything about this Through Aug. 4 Las Vegas New York N.N.: It was going to be such a drastic profession intuitively from growing up in a Through Aug. 5 Through Aug. 6 change. But I was reassured by both of them factor-filled household? Aug. 3 that I had a great opportunity in front of me Aug. 4 Aug. 12 N.N.: When I’m out meeting people, they Accessories The Show to learn the business, to work in a family- Los Angeles Fashion Market Swim Collective commonly say my mom and dad must have Fame owned business rather than bank-owned. I Moda Manhattan California Market Center Hyatt Regency sat around talking factoring. The night before ended up really enjoying it here. Jacob K. Javits Convention Center Gerry Building Huntington Beach, Calif. my first day, my wife and I went out to dinner New York Cooper Design Space Through Aug. 13 Were you surprised, Don? with my parents and that was the first time we Through Aug. 5 The New Mart talked about factoring. Growing up, I knew D.N.: Yes, I was surprised. Nick was an CurveNY 824 Building nothing about what my dad did for a living. Lady Liberty Building athlete all through college. He really enjoyed Jacob K. Javits Convention Center The last three years has been amazing getting Primrose Design Building his experience working for these sports New York to see what’s he’s done, growing the office Academy Awards Building networks. No one who gets into factoring Through Aug. 5 and his portfolio, realizing his reputation in the Los Angeles ever intended to do it. No one says, I want Lazr business, which is second to none. I appreciate Through Aug. 7 There’s more to get into this business. They get into it by The New Mart on ApparelNews.net. the years and years he’s spent dealing in this mistake. Los Angeles Transit fast-paced industry. I am very proud. Through Aug. 5 California Market Center For calendar details and contact D.N.: My mother, my aunts and uncles, all Los Angeles Why is that? LA Kids’ Market information, visit ApparelNews. worked in apparel in the New York City area, Through Aug. 6 California Market Center net/calendar. D.N.: Even though it is similar to banking, a generation that worked in sweatshops. it is very different. It is an entrepreneurial For me, working in the industry on the business. What we do at Merchant, non- Submissions to the calendar should be faxed to the Calendar Editor at (213) 623-5707. Please include the event’s name, date, time, West Coast was all about still keeping my location, admission price and contact information. The deadline for calendar submissions is the Tuesday prior to Friday publication. recourse factoring, is the oldest type, connection to my roots back East and my Inclusion in the calendar is subject to available space and the judgment of the editorial staff. that goes back hundreds of years in this family. When I became a factor, I realized, country. Factoring is so specialized that Wow, this is really in my blood. Nick is the most banks don’t understand it. And the next generation. If he sticks with this and apparel industry has its own idiosyncrasies. continues to do well, he has the potential to POSTMASTER: Send address changes to: CALIFORNIA APPAREL NEWS, Customer Service, PO Box 4419, Orlando, It’s very enjoyable if you like a fast-paced have a long and very rewarding career. FL 32802. CALIFORNIA APPAREL NEWS®: (ISSN 0008-0896) Published by TLM PUBLISHING INC. Apparel News type of business, working with a lot of Group Publishers of: California Apparel News®, Market Week Magazine®, New Resources®, Water­wear®, New York Apparel News®, Dallas Apparel News®, Apparel News South®, Chicago Apparel News®, The Apparel News (National), Bridal Apparel News®, Southwest Images®, Stylist® and MAN (Men’s Apparel News®). Proper- ties of TLM PUBLISHING INC., California Market Center, 110 E. Ninth St., Suite A777, Los Angeles, CA 90079, (213) 627-3737. © Copyright 2014 TLM Publishing Inc. All rights reserved. Published­ weekly except semi-weekly first week of January, second week of July and first week of September. Periodicals Postage Paid at Los Angeles, CA, and ad- ditional entry offices. The publishers of the paper do not assume responsibility for statements made by their advertis- ers in business competition. Opinions expressed in signed editorial columns or articles do not necessarily reflect the opinions of the publishers. Subscription rates: U.S.: 1 year, $89; 2 years, $140. Foreign: $180 U.S. funds (1-year sub- Fashion Faces is a special sponsored series of columns. The next one will appear in the Aug. 8 issue. scription only). Single-copy price $2.99. Send subscription requests to: California Apparel News, Customer Service, PO Box 4419, Orlando, FL 32802 or visit www.apparelnews.net. For customer service, call (866) 207-1448.

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apparelnews.net august 1–7, 2014 CaliFOrnia apparel news 6

06.11.newlines.indd 6 7/31/14 7:30:31 PM the new mart James Perse Women’s Lolly Pete and Greta Studio Two Clothing Janna Conner Lori Jack Piece of My Heart Sue Goodman Jaqua Love Nail Tree Pink Lotus Showroom JARLO Love Quotes Pistil Sugar High Divine Jbrand Kids Love Sadie PJ Luxe Sunday in Brooklyn Rights of Sunlight Denim Jennifer Michelle Sales Love Sam PJ Salvage Susanne Karlsson Doma Leather Jessica Elliot Love Token Press Susan Holmes Dora Landa JET by John Eshaya Lucky 7 Tees Private Arts Suss Double Zero Jimmy Taverniti Lucky Brand Private Arts Intimates Suzi Roher Dream Monstar Jimmyjane Luli Fama Project DL Swat Fame dylan Jitni Lulla By Bindya Pulse Showroom T. Smith & Co. dylan developed Joed Belts Lumier by Bariano Pure Karma showrooms & lines by true grit Joe’s Jeans Luz de la Riva Quay T2Love !iT E. Victor Gabriel John and Jen Lysse Quintsoul Talia Hancock 10 eleven Brett Morris Echo John Varvatos M Group Showroom Rachel Pally Tee Ink 3 J Workshop Brashy Couture Ecru Johnny Was Mad Mac Rae Vavre TFNC London 35MM Brinla Elan Joie Magid Bernard Homme Ramune Piekautaite The Gig Showroom A La Mode Showroom Brokedown Elan Beach Joken Style Showroom Maison Close Rande Cohen Showroom The Natural A New Kind BSABLE Elle Sasson Jon McCoy Maison Lejaby Raviya The Pink Powder Room A.V. Max Accessories Butterflyzebra Elise M. Belts Josie Mantra RD Style the Residency. Able C&T by Engel’s Showroom Inc. JtheWay Margaret O’Leary Rebel Footwear The T Refinery Abyss By Abby Costello Tagliapietra Enza Costa Jude Marie Chavez Red Haute The Village Showroom Acrobat Cailey 22 Equipment Judith Autumn Mann Marseilles Red Monkey The Vonderheide Showroom Adelyn Rae Caelum by Brooke Burke Eric Javits Sales Mary Hardie Red23 Three Dots Agave Denim Collection Calvin Klein Everleigh Julie Brown Showroom 605 Repeat Tiara Café Aijek Cambio Fate JWLA Matty M Representing Showroom Timberland Akela Key Cameo Clothing Feather 4 Arrow Kaos Mavi Jeans Revolution by Edwin Timka Jewelry Alashan Cashmere Carapace Feel the Piece Karen Capil MAY The Label RG Jeans Black Label Caroline Grace by Fever Sweaters Karen Kane Mayasutra Rieley Tommy Bahama Alashan Cashmere allen allen usa Fickle Karen by Karen Kane McGinn Riller and Fount Tommy Hilfiger Case Mate Luggage & Backpacks ALC Fifteen Twenty Karen Kane Women Mel by Melissa Robert Graham Casual Friday Tracy Evans Alexis Jewelry Fluff Accessories Karen Klein Melody Roberto Cavalli Chan Luu Transmission Alexis n’ Ryan For Love & Liberty Karlita Designs Mia and Moss Class Handbags Chan Luu e.f.i. Trend Request Inc. All Things Fabulous Forever Unique Karma Kreations Michael Kors Rock Revival Chantal Accessories, Inc. True Grit American Vintage Forgotten Grace Kathy Walker Sales MICHAEL Rolla Coster Charles Henry True Religion Brand Amy Matto Formation Showroom Kelly Wearstler Jewelry Michael Kors Rosemunde Charlotte Tarantola Jeans Analili Fraiche by J Kenneth Jay Lane Michelle Jonas Rosebud Los Angeles Chaser TSUBO Anatomie Fredd and Basha Scarves Mickey + Jenny Rose Gonzales Chelsea Flower UGG Australia Andrew Marc Belts Freeloader Kerisma Knits Mila Rowan Reed Christa Louise Underella by Ella Moss and Wallets Freeway Kersh Milk The Goat Rubber Doll - By Design Christopher Fischer Union of Angels Angel Iglesias Freida Rothman Kid Tails Miss Me Rubber Ducky Christopher.Kon Urban Fitting Room Ann Ferriday for Belargo Kische MM Couture s.a.m. Showroom Cino Blouses Vast Anne-Marie Chagnon French Connection - KLA/Karen L. Anderson Mod-O-Doc San Francisco City Lights CJ by Cookie Johnson Velvet Heart annie + jade Men’s & Women’s Kling Mofi Sanctuary Clothing Claudia Nichole by Vicious Venom Anouka Frenzii Knitted Dove/Love Dove Mor & Dotter Saraswati Alashan Cashmere Victoria Beckham Aratta Friends of Natives Knot Sisters Mother Jewelry Designs Clique Viereck Aryn K Frock Shop KOA Swim Moyuru Scrapbook Clo Intimo Vigoss Jeans Atina Christina Funky Yoga Kokomo unlimited My Line Search for Sanity Cocobelle Vince Australia Luxe Collective Giles & Brother Kokun Cashmere My Other Bag See Thru Soul Cohen Showrooms Vince Men’s Babette ginger. Koral Activewear My Pakage Sequoia Paris Co-Lab Vintageous Baci Gold Hawk Kray.USA My Tribe Showroom 903 Cole Haan Belts and Volunteer Banaris Scarves Green Dragon Kushi Nalukai Showroom Shift- Wallets Vonderheide Guess Belts Kut from the Kloth Nana Nucci Lesley McEntire Bantu Cole Haan Cold Weather Showroom Gypsy 05 La Natura Nanavatee ShowroomFive21 Barbara Gerwit Collective Freakuency wallpapHer h.i.p. La Rue Sales Nanette Lepore Sigalie Jewelry Barbara James Show- by Tova Celine: Want Need room Complete Clothing Hair Accessories Label + Thread Nat + J Signorelli by Jane Tran West Bank Clothing Bariano Contempo/Kirakira Lace & Whiskey Nation LTD Silver Jeans Hale Bob Western Fashion Jewelry BB Dakota Cookie Couture Lacoste Neesh by D.A.R. Simply Irresistible Halo Wet BB Dakota Special Sizing Cop Copine LA Soiree Newbark Single Hard Tail White Crow Beach Rays Coordinates Collection Lamade Niche Showroom Sita Murt HATCh White + Warren Beauty Fashion Hats Corinne Simon Jewelry Lan Jaenicke Nick and Mo Skies Are Blue Haute Hippie Whitney Eve Beautifully Couture Corina Collections Lancaster Paris Nikki Rich Skif Havaianas Wild Angels Before & Again T’s Cotton Citizen Landa Sales Nor Skinny by Jessica Elliot Hazel Willow & Clay Bela NYC Cowboys Belts Lapis Notify Skinny Tees Heather Wilma & Ethel Bernadette Mopera & & Handbags Laurie Hasson O2 Collection SKUNKFUNK Heart and Gold Wilt Co. Crown Jewel Lavender Brown Oats Cashmere Sky Heart Soul Winston&hart Beth’s Addiction Cult of Individuality LE TANNEUR Obbaki Sloane Rouge Heather G Showroom Winston White Betsey Johnson Acces- Current Elliott Leatherock Old Gringo Boots Sloane&Tate Wooden Ships sories Dakota Collective Hepburn Monroe Smash Leighelena Olive & Oak by Paola Bundia Betseyville Daniel Friedman West Hourglass Lilly Snowman Leggsington Om Girl Woodleigh Beyond Yoga Daniel Rainn Hudson Jeans Sock It To Me www.newmart.net Lemueix One Odd Bird Bishop + Young Hunter Dixon Workshop Daniela Corte Legging Lesley McEntire One Teaspoon Soludos for Men, Bindya Bar by Hunter Bell Kids and Women X by Gottex Level 99 Only Hearts Bird & Vine Darlene Valle Hybrid Solow Yana K Level 99 Onzie BIYA Showroom 701 I Heart UGG Soul Mates Yantra Liberty Garden Oober Swank Black Hearts Brigade Datscat I.Madeline Spanx Yerse Liberty Sage Oonagh by Black Swan David Galan IDI Yoana Baraschi Lilla P Nanette Lepore Splendid Intimates Black Moon David Kahn Jeans Ilux Yoon Lily Others Follow Stacey Rhoads Sales Bloom Dear John Denim Invisibelt Yoshi Yoshi by PJ Line Paige Stacy Chang Blue Tassel Deca Isda & Co. Yosi Children Line 3 Pam and Gela Stacy Keyes Showroom Blue Velvet Deep or Shallow/Ju’s Ivan Grundahl Yosi Samra Liquid Metal by Sergio Paper Denim & Cloth Stacy Sterling Bob Ditchik and Denimocracy Ivko for Men and Women Stateside Zimmerli Gutierrez of Switzerland Assoc./The H.E.M. Desigual Jachs Paper Hart Steve Madden Lisa Freede Zelda Bobeau Deux Lux Jack Paperwhite Steven by Steve Madden Lit Studio Zero Degrees Celsius Bon Marche Dial M Jackie B Showroom Patrons of Peace Streets Ahead Livefree Showroom Zoa Bonage Diane Levin Showroom Jacob Davis Peace Love World Belts & Bags Liza Stewart, Inc. Zoe Couture Bo-Bel Diane von Furstenberg Jacob Gray Agency Penelope Chilvers Strom Denim Lodis Handbags, Belts Z Supply Boho Me Dittos James Jeans & Small Accessories Pepa Loves STS Blue

NM.indd 1 7/28/14 12:42:44 PM showroom profiles advertisement

Skylton Paris Bonnan, who has been with Skylton California Market Center, Suite B540 since the beginning, said the brand has been Hana Financial’s IT Factor (310) 623-7807 picked up by retailers in Los Angeles, New York, Miami and Toronto. After testing the U.S. waters over the last Skylton is known for its skinny silhou- Hana Financial has been an to it and learn how to use it. Then we ette, which is engineered for a flattering fit. innovator in the financial and factoring will add other functionality based on year, French denim brand Skylton is putting arena since its farsighted founder, their feedback.” down roots with the opening of a new show- “What makes the difference is it’s a low Sunnie Kim, created the company in The Factor App, which undoubtedly room at the California Market Center. rise in the front—very sexy—but the back 1994. From its early days in equipment will become a critical tool for those who is higher,” Bonnan said. leasing, Hana has grown to be a top- do apparel business overseas, is only “Women really appreci- seven factor and top-25 SBA lender in the latest in a string of technological ate that.” the country, with offerings that include advances introduced to the industry by The denim has a trade finance, wealth management, and Hana. Seven years ago, the company peach-skin hand with a 2 home mortgage. introduced its proprietary Hana percent stretch for com- It is no surprise, then, that Hana EasyAssign software, not available fort and good recovery. has been all over the information from any other factor. Installed on The company designs the technology (IT) revolution as it applies clients’ computers, EasyAssign makes washes to sculpt the body to the apparel industry—more widely it possible for clients to image invoices to flatter the wearer, Bon- referred to as e-factoring. and then transmit them nan said. Hana’s e-factoring to Hana along with There are 58 styles in system is a web-based automatically generated the collection, and whole- Internet application cover sheets. Aimed sale prices range from that covers many at small- to mid-size $40 and $60. aspects of the factoring companies, the software Skylton also has a re- allows for “a substantial process: requesting tail store at 8602 W. Sun- credit approval, reduction of costs,” set Blvd. in West Holly- advances, and L/Cs; according to Oh, “as viewing aging reports; the operations for both wood. and checking fund clients and Hana are In Skylton’s CMC availability, statements, streamlined.” Cyril Bonnan showroom, the collection collection reports, check Hana also employs a is sharing space with an- images, and accounts- “full document imaging Last March, the 2-year-old brand par- other French brand, men’s underwear line payable invoices. solution,” Oh goes ticipated in the Fre(n)sh fashion show, or- Ice Moon, which was created in 2010 and Hana consistently has on. “All documents, ganized by Le Frenchlab during Los An- has developed a following among European invested in research and including checks geles Fashion Market at the CMC. From soccer players, Bonnan said. Wholesale development in the IT and invoices, are there, the company went on to exhibit at prices for the brightly printed boxer briefs arena and today boasts electronically stored WWDMAGIC in Las Vegas and Project in begin at $9 and go to $15. a track record second to and can be accessed New York. To celebrate the opening of the show- none. by our clients any time, “Last season was a test,” said Cyril Bon- room, Skylton is hosting an invitation-only The man behind anywhere.” nan, president and chief executive officer of fashion show and party on Aug. 4, opening Hana’s impressive Digitizing documents RB & CB Enterprises, which is represent- day of Los Angeles Fashion Market. The IT arsenal is Senior Hana Financial’s “Factor not only helps clients ing the brand in the United States. “It was a event is being held in the CMC lobby. Vice President and IT App” find what they need good test.” —Alison A. Nieder Manager Sung Oh. faster, but it also trims Oh, who has been with down the number of employees needed to deal with them, Hana for 10 years, has more than one for every customer, and we sell to every 30 years of systems analysis and for Hana as well as its clients. “The Lynn Girard Showroom customer.” software development experience for system works so efficiently, we’ve been an array of industries in the public and able to minimize the number of people The New Mart, Suite 1203 The Lynn Girard showroom will start its private sectors, including banking, doing cash application to invoices,” Oh (213) 625-3341 first LA Fashion Market at The New Mart manufacturing, retail, and insurance. says by way of example. “It lets us be [email protected] by representing fashion lines Fabrizio Gi- “All of the many things I’ve been leaner. That makes our company more anni, Eva Varro, M. Made in Italy, Tricot able to accomplish over the past competitive than other factors.” After 36 years of running a showroom in Jean Marc, Spanx, Belford and Luii. Core decade would not have been possible With this array of IT tools available the California Market Center, Lynn Gi- wholesale price points range from $40 to without the understanding and full to its customers, Oh continues, “I rard thought it was time for a change. $70, Girard said. support of our leader,” Oh says. can confidently say that Hana is She moved into a 1,600-square-foot The LA Fashion Market also will host “Because she herself is innovative, more advanced from an information showroom at The she has been very receptive to IT technology standpoint than other New Mart on July 23, solutions that I have devised and has factoring companies, including the and many of her for- consistently given the green light to the bigger ones.” mer neighbors from projects.” Discerning their clients’ needs is the CMC’s fifth floor One project Kim green-lighted the true driving force behind Hana’s IT also recently made the half a year ago—one that is about to division. Understanding that learning to move. Showrooms for make its debut—is Hana’s new factor use new technology can be a difficult Allen Allen and, Karen application for cellphones. The “Factor experience for some, Oh insists on Kane were CMC neigh- App,” which is currently in beta-testing keeping every new development simple bors of the Lynn Girard internally, will be available for free to and user-friendly, especially at first. Showroom. CMC ten- Hana’s customers around September, “That is one of the strongest parts of initially through the Apple iPhone Hana IT,” he points out. “We know ant XCVI is scheduled store, with an Android version coming our clients, and we will provide what to open at The New later. The app will enable clients to they need to adapt to new technology. Mart in October. use their cellphones to request funds, There is a communication between our “We are finding our- check their transactions, and request clients and us.” selves together again,” credit decisions “while they are on the With the introduction of the Hana she said. “We’re such run,” Oh explains. “They will have the Factor App, Hana will have raised the IT good neighbors. We freedom to do this any time and any bar another notch higher. While Oh will help each other out.” place.” Notifications, such as credit not disclose “the ideas I have in mind” Girard said many of approval, will be messaged through the for future projects, it is clear innovation her clients suggested app—“more instantaneous than email,” will continue to guide Hana’s IT division. that she make the move Oh adds. “The factoring business today is very to The New Mart and Hana plans to run several pilot complicated,” Oh says. “Without IT, it its showrooms with a programs with clients, get their wouldn’t happen. As new technology contemporary focus. responses and suggestions, make comes out, we will come out with The Lynn Girard changes, if needed, and introduce it something new, if that helps our clients Showroom will be “when we are comfortable.” and our operations. Sunnie is open staffed with mostly long- “For now, we want to start simply,” to everything, and we will just move time employees. Flor- Lynn Girard (seated). Standing from left are Allysia Lyn, Carly Daft and Oh continues, “so clients can get used forward.” ence Ratzsch has been Florence Ratzsch. working at the Lynn Gi- rard Showroom for more than 30 years. Carly some debuts for the showroom’s lines. Luii Daft has been working for the showroom for will introduce some novelty T-shirts during a decade. The showroom’s novice is Allysia the market. Spanx will introduce a denim Lyn, who joined the company in 2014. line, which will feature premium denim “I like someone for every decade age- mixed with the line’s shapewear. wise,” Girard said of her staff. “I have some- —Andrew Asch

8 CALIFORNIA APPAREL NEWS august 1–7, 2014 apparelnews.net

08.shorooms.indd 8 7/31/14 8:22:08 PM prolable.indd 1 7/9/14 5:42:03 PM showroom profiles

Agent Icon Zero Degrees Celsius Cooper Design Space, Suite 205 Gerry Building, Suite 707 (213) 489-4789 (213) 265-7773 www.agenticonfashion.com An abundance of light streams After many years on the 12th floor of The New Mart, the Agent Icon showroom moved in through the south-facing win- in in June to a new space on the second floor of the Cooper Design Space, where light fil- dows of the new showroom for the ters into the bright space through the trees lining Los Angeles Street. Zero Degrees Celsius line. “We were going for a clean look,” said Alicia “Cha Cha” Rodrigo, Agent Icon showroom It was the large windows that director. “I love the white walls and the high windows.” convinced designer Jerry Chen that Minimalist cable racks were already in place in the showroom when Rodrigo and her this was the spot to showcase his colleague Annabel Powell moved in. Agent Icon is sharing the space with the By Land and contemporary women’s line, Zero Sea showroom. Degrees Celsius. “My customers The new show- are contemporary women of all room houses Agent ages who want to dress trendy but Icon’s seven collec- not too crazy,” he said, standing in tions, Los Angeles– the middle of the new showroom, based Line & Dot and which was decorated like a cozy Supermuse; Wyldr living room where people can drop London, a collection by, have a coffee and talk fashion. based in London and Chen is new to Los Angeles. LA; New York–based Until recently, his showroom for Jerry Chen Saylor; and six Aus- his nearly 2-year-old line was lo- tralian collections: cated at 39th Street and Seventh Bardot, Asilo, Three Avenue in Manhattan. But the graduate of Parsons The New School of Design decided of Something, Style that after many years on the East Coast, he wanted a less hectic environment to raise his Stalker, Madison 4-year-old twins. Square and Madison So he is putting down roots in Los Angeles, starting with a new showroom for his label, Square’s sister line, which has been selling at Nordstrom as well as Saks Fifth Avenue’s website and about 100 Wilde Heart. boutiques across the country. Eventually, he wants to open his own Zero Degrees Celsius Wholesale prices store in Los Angeles and have a few seamstresses working there to do custom design. for Line & Dot, Style Chen, who grew up in Taiwan, does a good deal of his manufacturing in China, especially Stalker and Three for his sweaters and more intricate laser-cut tops. Some of his woven tops are cut and sewn of Something range in Los Angeles. approximately from His designs are very delicate and feminine with wholesale prices ranging from $65 to $38 to $150. Whole- $100 for Spring merchandise and a little higher for Winter. sale prices for Madison Square, Wilde Heart and Wyldr London are “super accessible,” When Chen finishes setting up his showroom, he wants to establish a design studio in one Rodrigo said, ranging from $16 to $45. Supermuse is wholesale priced from $18 to $22 and corner of the space, near those big windows that let in so much light. When he isn’t design- Saylor is wholesale priced from $45 to $115. ing for his own label, he does private-label designing for Bebe, The Wet Seal and the Home Just as the showroom was moving to the Cooper building, the Agent Icon showroom also Shopping Network. He also designs for the labels Shu Shu, Yu Li and Lu Lu, which have opened in New York, where a third member of the Agent Icon team, Robin Foti, is based. a showroom across the hall from him at the Gerry Building. “We’ll still do all the New York shows,” Rodrigo said. “It’s just easy when you also have Also sharing his showroom is Gilbert Chen (no relation), whose contemporary menswear someone there.”—CMC_HalfPage_0714.pdfAlison A. 7/29/2014 Nieder 9:27:40 AM line is called Barque.—Deborah Belgum

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10 CALIFORNIA APPAREL NEWS august 1–7, 2014 apparelnews.net

10.showrooms.indd 10 7/31/14 8:22:46 PM new lines showroom profiles

Continued from page 6 Money Ruins Everything @ The Park Showroom have embraced the high-fashion aspirations of contemporary lines, and many Carapace Lady Liberty contemporary lines have adapted streetwear’s brash attitude and sense of ex- Lucky 7 Tees (213) 250-6200 periment. Darlene Valle Suite 701 [email protected] “The lines will get even more blurred,” Graeber said. Susanne Karlsson [email protected] Martin and Graeber sensed increased opportunities to place streetwear KLA/Karen L. Anderson The Park Showroom has been on a growth spurt. clients at traditionally contemporary stores and contemporary brands at Suite 704 In October, the menswear showroom opened contemporary boutique Sev- streetwear stores. The merger will blend The Park’s staff of 28 sales and sales Bon Marche Espadrilles en Points on the ground floor of the Lady Liberty Building. support people with Money’s staff of eight salespeople and LA Soiree Sweaters Last month, it announced a merger with streetwear show- its media service. ginger Showroom Suite 707 room Money Ruins Everything. The showrooms will keep The joint sales operations will be based in The Park’s of- Beth’s Addiction their separate identities and work in conjunction when a fices in the Lady Liberty Building. Based in Los Angeles’ Casual Friday project calls for joint efforts. West Adams district, Money Ruins Everything’s media ser- Lace & Whiskey When the showrooms partner, the effort will be called vice will do lookbook and product and lifestyle photogra- Stacey Rhoads Suite 800 Money Ruins Everything @ The Park. phy as well as video production and mobile app and website Single Eric Martin, The Park’s founder, described the combined development. The media crew recently shot a video of Ron Liza Stewart Inc. force as a handshake between his showroom’s contemporary English, a prominent contemporary artist, painting a mural Suite 900 clients and Money Ruins Everything’s forte in streetwear. at teen retailer Zumiez’s headquarters in Washington state. Butterflyzebra Zzz’s “The look everyone is wearing runs from casual contempo- Some of the brands represented by Money Ruins Ev- Parker Smith rary to streetwear,” Martin said. “They’re wearing a SSUR erything @ The Park include Zanerobe, Howe, Woolrich Cohen Showrooms Suite 901 cap with Zanerobe pants.” White, Goorin Bros., Focused Space, Supremebeing, Clique Elliot Graeber, Money Ruins Everything’s partner/direc- Elliot Graeber, left, and Eric Martin SSUR, Hall of Fame, Mishka, Gourmet Footwear, Odd Jacob Davis Collection tor of sales and operations, said that many streetwear brands at Seven Points boutique Future and Born X Raised.—Andrew Asch Showroom 903 Suite 903 Solow Lit Studio Suite 906 Black Moon Halo Heart Soul Nat + J Rosebud LA Soul Mates Sugar High Tracy Evans Want Need Workshop Datscat Suite 910 Gypsy 05 Gypsy Sands LiveFree Showroom Suite 1003 Skunkfunk Heather G Showroom Suite 1003 LIV West Bank Clothing Suite 1101 Coordinates Collection Sheri Bodell X by Gottex Yana K Rande Cohen Showroom Suite 1103 Ann Ferriday M Group Suite 1207 Le Tanneur

Gerry Building 910 S. Los Angeles St. New Showrooms: Zero Degrees Celsius, Inc. Suite 707 Zero Degrees Celsius Barque Suite 707 Barque Men’s/kids’ GIL & JAS Unit 707 Gil & Jas Shu Shu Unit 708 Kerri n Kelsey Lillian Hsu Lu Lu Shu Shu Yu Li New Lines: Pacific Coast Reps Suite 503 Rose Blue Miriana Ojeda Showroom Suite 702 Alquema Bia Miro Salt & Pepper Sales Suite 802 Lunn.fr Nek-Enuf?: Suite 805 te verde Arlene Henry Sales Suite 902 Aldo Martins Sweaters Courtney Dee Karen Kearns Sales Suite 906 Anne Turtaut Dolores Piscotta Cashmere

apparelnews.net august 1–7, 2014 CALIFORNIA APPAREL NEWS 11

06.11.newlines.indd 11 7/31/14 7:31:04 PM Industry focus:finance finance How a Growing Economy Affects Financing for Apparel Manufacturers

By Deborah Belgum Senior Editor about the risk they take. Even in a strong economy, companies large, creditworthy accounts. They have access to an array of With interest rates still hovering in single-digit territory, the can still go out of business. economical credit insurance enhancements, thereby shielding cost of borrowing money should be cheap, cheap, cheap. But Although it is a competitive environment, generally inter- them from potential catastrophic losses. it’s more than low interest rates that determine how much ap- est rates are primarily based on the individual client’s financial The factoring world within itself remains very competitive. parel manufacturers pay for a loan. condition and performance. Banks are seeking to expand their business into the middle Factors and banks crunch a variety of numbers into their cal- market, and manufacturers are feeling more confident to go it culators before they come up with the interest rate a borrower is alone. With that in mind, the only direction interest rates can charged. Some of the formula comes from how much inventory Mitch Cohen, Western Regional Manager, CIT go is down. an apparel maker is carrying or what kinds of retailers manu- Commercial Services facturers have as their clients. One thing hasn’t changed. Financially strong companies Interest rates continue to have a certain advantage over start-ups with no business his- decline as more competitors tory. And rates are still variable as the retail sector struggles enter the market. With re- with more competition from e-commerce. gards to the industry chang- We asked several financial factors to give us a glimpse into ing its risk appetite, I would how they view the credit environment for clothing makers. say that it remains consis- tent from prior periods. The economy has been slowly improving over the last few years. How has this affected the interest rates that factors are Ron Garber, Executive charging for apparel manufacturers’ accounts receivables, Vice President and and are factors now willing to take on more or less risk in Sydnee Breuer, Mitch Cohen, Western Ron Garber, Executive Rob Greenspan, Owner financing? Regional Manager, First Senior Vice President, Regional Manager, CIT Vice President and of Greenspan Consult Capital Western Region Business Development, Commercial Services Regional Manager, First Inc. Rosenthal & Rosenthal Capital Western Region Sydnee Breuer, Senior Vice President, Business Our challenge as factors Development, Rosenthal & Rosenthal during these times of a healthier economy has brought more Still, opportunities remain available for the independent, competition into our traditional core industries. Potential fac- non-bank-owned factor that can put together a factoring and When the economy is improving or doing well, lenders in toring candidates are rethinking their need for a full factoring financing package that is flexible, timely and less structured. If general—and factors, included in that group—should be and facility with the goal of reducing costs by seeking out cheaper interest cost is tantamount, then the independent can partner up are willing to take on more risk. bank funding. with a major bank, thereby offering the best of both worlds. As the client portfolio performs better in improving econo- If an existing factoring client has beefed up its balance sheet In conclusion, the factoring business remains a viable mies than in weaker ones, the potential loan losses go down. over the past few years, they are in a position to attract multiple mechanism for working capital in its core industries. As long So there is more appetite to take on risk. There are also more offers from top-notch banks that could reduce their borrowing as the economy keeps humming along, it will face challenges opportunities for clients to need help for “good” reasons—in- costs anywhere from 150 to 250 basis points. Additionally, they for market share. By adhering to a disciplined risk policy, fac- creasing sales, expanding product lines, buying new labels or possibly could bring in-house the credit-and-collection func- tors will survive and be in position to expand their businesses businesses, etc.—rather than “bad” reasons—losses, shutting tion and save the factoring commission. when the banks predictably contract during the next economic down divisions, etc. However, factors still need to be prudent Most apparel manufacturers today sell to a select group of downturn.

Getting you back in fashion

The right lender makes all the difference. Timely funding and premium Factoring services with the excess capacity Ramsey Naber Tom Sullivan to provide credit coverage. 213-412-1555 213-412-1545 If you’ve outgrown your current lender, are looking to stage a turnaround, or need greater flexibility, you need a working capital solution from First Capital. A team of dedicated professionals understand your business goals and have the expertise to help you achieve them.

12 CALIFORNIA APPAREL NEWS august 1–7, 2014 apparelnews.net

12-14.finance.indd 12 7/31/14 7:46:27 PM Industryfi focnanus:ce finance

able to borrow at 2.25 percent to 3.25 percent. be one of the factors in keeping rates from fluctuating. Ac- Rob Greenspan, President, Greenspan Consult Inc. tually, the main determinant of movement in our portion of Kee H. Kim, President and Chief Executive, Finance the economy seems to be driven by competition more than Interest rates remain low, and this provides manufacturers One Inc. any other element. with the ability to borrow money against their accounts receiv- The level of risk a financial factor or any other lender is ables or inventories at historically low rates. Factors traditionally determine interest rates based on the fi- willing to take remains subjective. Because each decision is It doesn’t seem that long ago when the going rate was prime nancial strength of a client’s business and principal’s experience based upon many considerations, in the final analysis each plus 3 percent or even higher. The prime rate is still a common and character. Despite overall improvements in the economy, deal will stand on its own merit combined with the risk tol- index used to calculate interest charges, but today the prime the apparel industry is yet to experience a significant or sus- erance of that particular firm. rate is around 3.25 percent as compared to years ago when the tainable growth. With sluggish sales in both retail and whole- prime rate was in the 8 percent to 10 percent range and even sale sectors, many apparel manufacturers and wholesalers are Robert Myers, Managing Director for the West Coast, higher. financially struggling without a clear indication of foreseeable Bibby Financial Services The “percentage plus” amount varies by many factors, but recovery. The interest rates have gone down in recent years, today it can range anywhere from prime plus 0 percent to 3 but this decrease has been attributed to increased competition For well-established and growing brands, it has never percent and higher. The financially strong companies typically among factors as well as banks. been better to be a borrower. Interest rates are at their lowest With bankruptcy fil- levels in the bank and alternative-receivable finance markets ings by a handful of well- as lenders strive to retain clients. known retailers in just the Due to inconsistent consumer demand over the past 12 past couple of years— months, our clients have been reluctant to seek additional Loehmann’s in Decem- capital providers as future demand is still cloudy. We are ber 2013, Dots in January, even seeing reductions for factoring rates in the traditional Ashley Stewart in March, factoring market for small- and medium-sized brands that Coldwater Creek in April have more access to capital than ever before. As the number and Love Culture in Ju- of receivable-financing companies increases, demand re- ly—risk management has mains stagnant or below average. We are seeing a reduction become more important in cost to borrowers. than ever for factors. When it comes to risk, in situations where growth is ex- Kee H. Kim, President Sunnie Kim, President Robert Myers, Don Nunnari, Regional Factors are hard-pressed pected nationally year over year, finance companies have and Chief Executive, and Chief Executive, Managing Director for Manager, Merchant to maintain profit levels with had to stretch beyond traditional ratios across all types of Finance One Inc. Hana Financial the West Coast, Bibby Factors Corp. competitive pressure on pric- collateral values. We are seeing more seasonal over advanc- Financial Services ing and increasing write-offs es and cash flow stretch lends where traditional bank/asset- get the better (lower) rates for borrowing. from the retailers’ continued financial difficulty. Since inter- based lenders wouldn’t have ventured. Another change that has occurred during the past decade has est rates are already low at this time, I believe that rates are Given that dynamic of increased risk, factors are forced been for financially sound companies to be able to borrow at unlikely to go any lower than the current level. to stretch even farther with advance rates and ratios and are LIBOR (London InterBank Offered Rates). This is an index less reliant on financial performance, helping brands have used for shorter-term loans that range from 30 to 90 days. Re- Sunnie Kim, Chief Executive and President, Hana access to more capital than ever before. cently, the 30-day LIBOR rate was .16 percent and the 90 day Financial And if your lender borrows at Fed rates, the amount they was .23 percent. pay for money is nominal. Today the cost of money is far Banks and factors, if their client qualifies, can charge interest We believe rates in the marketplace have been steady lower than it has ever been. at LIBOR plus 2 percent to 3 percent. Therefore, their borrow- even though there have been incremental improvements in With lower interest rates, banks’ and factors’ profit mar- ing rate is now much less expensive than a “prime plus” loan— the general economy. Unfortunately, the apparel and tex- gins are being squeezed. This can cause them to be more by almost 50 percent in some cases. Instead of borrowing at tile industries have not enjoyed the same level of economic selective to whom they give the best deals. Typically, the 5 percent to 6 percent, financially strong companies might be progress as some other parts of the economy, and that may ➥ Finance page 14

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In an industry that endlessly strives for the next big thing, having the flexibility to adapt at a moment’s notice is key to success. With our Trade Capital team at Wells Fargo Capital Finance, you get the strength and stability you need, along with the nimbleness you want. Our balance sheet can help minimize your exposure to risk, while our proven track record in factoring and receivables management helps make sure you’re ready for whatever’s next. To help ensure that your business’ success never goes out of style, let’s start a conversation today. Learn more at wellsfargocapitalfinance.com/apparel or call 1-866-703-4932.

© 2013 Wells Fargo Capital Finance. All rights reserved. Products and services require credit approval. Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, N.A.; Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A.; Wells Fargo Credit, Inc.; Wells Fargo Distribution Finance, LLC; Wells Fargo Capital Finance, Inc.; Wells Fargo Capital Finance, LLC; Wells Fargo Trade Capital Services, Inc.; Castle Pines Capital LLC; Castle Pines Capital International LLC; Burdale Financial Limited; and Wells Fargo Capital Finance Corporation Canada. Wells Fargo Capital Finance Corporation Canada (also doing business in Quebec as Société de financement Wells Fargo Capital Canada) is an affiliate of Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company.. MC-5918

apparelnews.net august 1–7, 2014 CALIFORNIA APPAREL NEWS 13

12-14.finance.indd 13 7/31/14 7:46:53 PM Industry focus: finance REACH NEW HEIGHTS. Working with Milberg Factors gives you an expert credit partner who shares your goals and works hard to meet your credit and nancing needs, no matter how the climate changes. That lets you focus on taking your business to the next level—and beyond.

We’ve been helping our clients to achieve their nancial goals for more than 75 years. Whether it’s handling customer credit risk, managing your receivables or providing working capital nancing—whatever your needs, we’re here for you. So Dave Reza, Senior Paul Schuldiner, Manag- Gary Stein, Vice Ken Wengrod, give us a call! We’ll help you to get where you want to go. Vice President, Milberg ing Director, Business President/Credit President, FTC Factors Development, King Trade Manager, Prime Commercial Corp. Capital Business Credit Inc.

Finance Continued from page 13 This has been, and, in the short term, will continue to be, a borrower’s market with re- companies that get the LIBOR rates along spect to rates and, unfortunately, sometimes with low percentage points added to the in- structure. dex are the ones that have less risk. There is tremendous liquidity available in Most lenders want to be rewarded for the the credit markets. That said, it is imperative increased risk they take. If you are a high- for an apparel company to align itself with a ly leveraged company, or you are selling factor as well as a purchase-order financier to high credit-risk retailers, or even if you that is highly experienced in the industry carry some excess inventory, which causes a and who understands the seasonality as well slower turn of money, you might be deemed as the business cycle. as a higher risk and have to pay more for As we have seen throughout history, cy- your money. The less risk the lender as- cles can change quickly. It is vital to have sumes, the lower your cost of money. a financing source that provides not only capital but consultative structuring advice Don Nunnari, Regional Manager, for the apparel entrepreneur, whether it be Merchant Factors Corp. in good times or when there is a downturn. Milberg Factors, Inc. We didn’t raise interest rates during the Gary Stein, Vice President/Credit recession. Our interest rates are among the Manager, Prime Business Credit Inc. A TRADITION OF ENTREPRENEURIAL FINANCE most competitive in the industry. Our risk appetite and our full commit- With the myriad of positive reports re- Call Dan Milberg, SVP, NY 212.697.4200 ment to our core apparel business remain cently, ranging from an eight-year low in Dave Reza, SVP, LA 818.649.8662 very strong and has never wavered. We jobless claims to a spike in mortgage activ- Ernie White, SVP, Winston-Salem 336.714.8852 are seeing more opportunities to factor ap- ity, we are cautiously optimistic approach- parel companies that need typical advances ing the second half of 2014. Durable-goods www.milbergfactors.com against their accounts receivables and in- orders and retail performance continue to ©2013 Milberg Factors, Inc. stances where companies need additional fi- outpace projections. However, many small- nancing for inventory purchases or seasonal business operators are reluctant to take on over advances. new debt, citing concerns over creditworthi- MIL.031.13_Heights_pf.indd 1 5/7/13 1:11 PM We are always available to meet these ness and cost of credit. prospects and learn about their business As the retail market’s dynamics continue and their financing requirements. Our goal to improve, it stands to reason that we will is to find a way to do the deal if it makes be presented with opportunities to finance sense. It always has and always will start more robust and aggressive deals, without with the people looking for the financing. compromising credit-quality protocol. The If we believe in the people, the deal usually economy still has a lot of room to grow, gets done. and we believe our industry will react in kind. We are closely watching the Fed, but Dave Reza, Senior Vice President, we are not anticipating any rate hikes until Milberg Factors more stable and sustainable improvement is shown. Interest-rate indexes such as prime and The key to success lies in seeking out LIBOR have been stable for some time. these qualified candidates and providing The pricing above (or in some cases below) our best product in this highly competitive these indexes reflect both the market con- market. ditions and competitive environment. After the economic meltdown in 2008, interest- Ken Wengrod, President, FTC rate spreads rose. Suffice to say, as the re- Commercial Corp. covery has progressed and financial markets stabilized, rates have fallen. While the economy has slowly improved While the market conditions will reward over the last two years, smart companies or impact all borrowers, specific deal rates have maximized their revenue by shaving still reflect the underlying transaction risk as off unnecessary expenses and improving perceived by a lender. To the extent the risk productivity and margins. These opera- is higher, the spread above prime or LIBOR tors have made their companies financially will increase (or there will be less below stronger and less dependent on the whims prime and LIBOR pricing). Of course, in an of lenders. improving economy, competitive pressures Factors charge interest rates according to will allow all borrowers to get a better rate risk and reward. Therefore, the more lever- than their financial standing may warrant. aged a company, the higher the borrowing While pricing has fallen overall, I believe costs. The same holds true for customers’ that most lenders, especially those servic- credit quality. By and large, default rates at California Finance Lender Licnese #6036885 ing the core apparel/textile markets, are not retail have been steadily declining. taking on as much unsecured/under-secured Factors’ risk appetite has improved due risk as they did pre-2008. to the general credit stability of retail cus- Of course, having said that, a good fac- tomers and because clients are running tor or bank is always willing to accept more tighter operations. Factors are still focusing Factoring • Trade Finance risk with principals who have demonstrated on the character of the owners, whether they a high degree of integrity and good operat- have the right merchandise (orders on hand) Purchase Order Finance • Business Loans ing skills. along with proper margins. They also like to see streamlined opera- L.A. Headquarters: 1055 W. Seventh St., Ste. 2200, Los Angeles, CA 90017 213•225•1000 tions with the ability to execute. The compa- Fashion District Office: 1016 S. Towne Ave., Ste. 211, Los Angeles, CA 90021 Paul Schuldiner, Managing Director of Business Development, King Trade nies that fall into these categories will have New York Office: 560 Sylvan Ave., Ste. 1065, Englewood Cliffs, NJ 201•227•0009 lenders supporting their growth and acceler- Capital ating the companies’ working capital. ●

14 CALIFORNIA APPAREL NEWS august 1–7, 2014 apparelnews.net

12-14.finance.indd 14 7/31/14 7:47:16 PM trade shOw repOrt

Kingpins LA Continued from page 1 in womenswear, but we’re also seeing some interest in menswear,” Hegedus said. Tung said he was getting a strong reaction On the first day of the show, more than to the Yogo, the company’s new stretch den- 80 attendees turned out, which makes the im development that combines the look of a Los Angeles show one of the smaller shows five-pocket jean with the comfort of athletic in the Kingpins lineup, which includes New apparel. York, Hong Kong and Amsterdam, King- “It’s all about ath-leisure, comfort and pins’ newest show, which bowed in May. softness,” he said. “It has to have power Kurabo’s Tung, a longtime Kingpins stretch.” exhibitor, acknowledged the difference Yogo fabrics can be washed and treated between the New York and Los Angeles like traditional denim, Tung said. shows. “In Kingpins in New York and Amster- “Compared to New York, there’s a big dam, people were loving it,” he added. “The contrast, but in LA, I don’t expect a lot of hand feel is super.” customers,” he said. For customers looking for denim for For Cadfab’s de Torre, the attendee turn- traditional five-pocket styles, Kurabo was out included the right buyers for his new showing lighter-weight fabrications with a fabric developments. softer hand. “This show is not about quantity, it’s Charles de Torre has exhibited at King- about quality,” he said. “If you have one pins with a previous company, but this sea- or two serious people, you had a success- son he returned to show print developments ful show. Especially a show like this, it’s from Los Angeles print house Cadfab. In invitation-only and very exclusive.” No Two Businesses are alike. addition to saturated floral and botanical Kingpins founder Andrew Olah said the prints on denim, de Torre showed prints on reason he scheduled the Los Angeles King- ‘A Different Level of Client Service’

LA 801 S. Grand Ave., Suite 1000 NY 450 7th Ave., Suite 1006, Los Angeles, CA 90017 New York, NY 10123 Tae Chung Austin Sohn (213) 534‐2908 Alan Ni (中文) (212) 629‐8688 www.finone.com

FACTORING TRADE FINANCING P/O FINANCING

The concept of factoring is simple: DENIM DEVELOPMENTS: Among the new developments shown at Kingpins was high-contrast denim made with an eco-friendly finish that does not use formaldehyde or potassium permanganate, shown at the Lycra booth; Kurabo Denim’s Yogo stretch denim, which combines the look of a five-pocket jean with the comfort of athletic apparel; denim canvas from Blue Farm Denim; and floral-printed denim by Cadfab.

leather, cashmere, silk and linen. pins show for July is because it falls after “We can supply the fabric, but most the Kingpins show in New York, which is a people love their own fabrics, so they can good time for the New York denim market. You Give Us Your Invoice. bring them to us and fall in love with me,” “We thought [the two shows] had to be de Torre said. at about the same time as a convenience for Lycra, which is a Kingpins show spon- the exhibitors,” he said. “But too many of We Give You the Money. sor, was also on hand with several of its latest my Los Angeles brands said in July, they are developments, including low-impact treat- busy producing their lines for the upcoming You Pay Your Bills. ments for stretch denim developed by Ital- trade shows.” ian mill Candiani Denim and Italian denim Kingpins skipped its Los Angeles show Factoring Made Simple. treatment specialists Garmon Chemicals. in January to prepare for the Amsterdam Results included a black denim sample with launch, which was part of a four-day cel- a “Galaxy” technique that looked like a field ebration of denim called Denim Days. The No bells, unnecessary, really. No whistles, not of stars and low-cure resin patches on the first two days focused on the business-to- needed as well. No tricks. Ditto. knee. Jean Hegedus, the marketing director business side of the market with the King- At Goodman Factors, we simply offer smart, for Invista, the maker of Lycra and Cool- pins trade show while the last two days were max fibers, was also showing denim with an consumer-focused with pop-up shops, work- dedicated good service from an experienced eco finish that does not use formaldehyde or shops, a marketplace, parties and events. team of pros. Along with money at competitive potassium permanganate but still gives the Olah said the turnout in Amsterdam was finished product a high-contrast look. a success that drew industry insiders and rates when you need it—today, for instance. Lycra’s stretch and recovery fiber Du- denim fans, who lined up to attend events. alFX continues to be popular, as is knit “I’m looking forward to future opportu- denim, Hegedus said. Invista is also seeing nities here in Los Angeles to make the show more interest in its Coolmax moisture-man- even more compelling,” he said. Goodman Factors agement fiber, as well as companies that are That could mean a change in timing, Olah — Since 1972 — pairing Coolmax fibers with Thermore, a said. “We’re going to try to do Denim Days hollow-core insulating fiber manufactured here like in Amsterdam and engage other el- Please call 877-4-GOODMAN by an Italian fiber maker. ements of the denim industry,” he said. “Our “We’re seeing a lot of renewed interest target date is September 2015. All things are or visit us at goodmanfactors.com. Simple, right? in X-fit Lycra with four-way stretch—more on the table for discussion.” ●

apparelnews.net august 1–7, 2014 CalIFOrnIa apparel news 15

01,2,15-19.cover.indd 15 7/31/14 7:53:30 PM tRAdE ShOW REPORt

Colombia Continued from page 1 becomes simple because this is not a time- sensitive product, and everything is done in Colombian designers as well as a few interna- Colombia. Wholesale prices for the finished PROUDLY MADE IN LA tional designers, such as Spaniard Custo Dal- product are about $17.” mau, the force behind the Custo Barcelona Many international buyers were sourcing label. for lingerie produced at the country’s numer- For the second time in its history, the ap- ous lingerie factories. Paloma Jonas and Whit- parel show incorporated a mass fashion mar- ney Brown, who recently started up an online ket known as Moda para el Mundo, a rela- lingerie line called Valentine NYC, started tively new show that had been competing with sourcing their first products in Medellín after Colombiamoda. they met a lace house they fell in love with. With free-trade agreements in effect with This was their first trip to Colombia in search a number of countries, Colombiamoda subsi- of more lingerie factories. “We are very picky, dized travel for some 631 international buy- and we like to be in control of the product,” ers. said Brown, who is based in New York and In total, there were more than 61,000 visi- works as a fashion model, as does Jonas. tors to the three-day show, with 7,024 national Jonas recently moved from New York to buyers attending as well as 1,552 international Los Angeles after becoming engaged to “Gen- buyers. Some 132 buyers came from the eral Hospital” actor Jason Thompson, who has United States from companies such as Bebe been in the soap opera for several years. Jonas Stores Inc., Lily Pulitzer, Under Armour takes care of the production side of the new and Zumba Fitness. lingerie line, which caters to smaller-busted One first-time buyer was Abdul Danishwar, women who like feminine lace bras, bralettes

SHAPELY JEANS: Models from Joy Staz denim GRAPHIC DESIGN: Tattoos were being given at wear, a Colombian company, show off some the Lee Cooper booth at Colombiamoda. current styles. Novelty | Pleating | Smocking | Unique Stitches 24 HOUR SAMPLE TURNAROUND | DOMESTIC PRODUCTION WWW.TWINSPLEATING.COM | 323.268.2955

COLORFUL GEAR: Los Angeles handbags COLOMBIAN SWIMWEAR: Maria Mercedes company Nicole Lee USA was showing for from Onda de Mar, which has a store on the first time at Colombiamoda. The line is Robertson Boulevard in Los Angeles, shows off designed by Suzy Han, left. The company one of the more popular swimsuit styles for the president is Samuel Lee, right. U.S. market.

whose design studio is and panties that re- in the heart of the Los tail for $38 to $52. Angeles Fashion Dis- The pair tried trict. His 2-year-old sourcing in China, company, 3D-Moda but there was a lack Inc., is developing of communication three labels: a mens- and the factories wear line called Alan had high mini- Dane, a womenswear mums of at least line called Sitara and 1,000 pieces, as Print + a childrenswear label opposed to Colom- called HanfulKids. bia, where mini- Currently, he is mums for lingerie producing shapewear REAL FUN: Colombian company Real Denim were around 350 to and yoga wear in Peru, had fun with visitors by photographing them in 400 pieces and the Online + Archives a cardboard frame. where he has attended cost to produce and PerúModa, the annual Peruvian fashion fair ship a lace bra is close to $15. in Lima. He thought he would check out Co- = Total Access lombia for sourcing possibilities, but he was Tariff walls disappointed. “The prices are elevated,” he said. “They are almost equivalent to what Colombia has had a free-trade agreement I could get in Los Angeles. I went to a fac- with the United States since 2012. In 2013, tory where the export price of blue jeans I was Colombia exported $267.1 million in apparel quoted was $35 without the cost of shipping.” and textiles to the United States, a nearly 7.5 Get Yours Today and However, he did come away with the ex- percent increase over the previous year. clusive distribution rights for a line of sports- But the South American country still is very wear made with UV-protection fabric. The involved in producing clothes for the domestic Save 75%! clothing—which includes surfwear, skatewear market rather than the export market. and childrenswear—is made by SOP Biker. Carlos Eduardo Botero, the president of call toll-free (866) 207-1448 “Product with UV protection is in demand, Inexmoda, which organizes Colombiamoda but there isn’t enough supply of it in Los every July and its textile equivalent, Colom- Angeles,” Danishwar maintained. “Sourcing ➥ Colombia page 17

16 CALIFORNIA APPAREL NEWS august 1–7, 2014 APPARELNEWS.NEt

01,2,15-19.cover.indd 16 7/31/14 7:54:30 PM technology The Influence: Celebrity Style, Millennial Shopper

Fashion enthusiasts often turn to celebrities created by the company Revelens. Viewers and musical icons for style reference. And in a can bookmark items without interrupting the time and age when a majority of shopping is viewing experience, enabling them to browse done over the Internet, it seems a sensible idea every look before clicking through to make to combine the two elements and establish a purchases after it ends, Catania said. shopable celebrity-style database. As an opener, they partnered with denim Newly launched e-commerce site The line DSTLD and collaborated with Courtney Influence uses celebrity images and makes Trop on a digital lookbook/photoshoot that their outfits accessible by a simple click of will be in constant flux with other guests. a button. “We love DSTLD because they have re- Created by Heather Catania, a former ex- ally embraced such a unique e-com element ecutive producer at Nylon, and Brian Lud- that focuses on convenience. When you buy low, the site was created to “eliminate the a pair of jeans, DSTLD will send multiple fractured experience of shopping influencer sizes to make sure the fit is perfection. This style. … Millennials want to make empow- alone shows that they really care for their ered purchases. We are driving content to customer, which really says something about commerce. Our culture is obsessed with their brand integrity,” she said. The Influ- Instagram, Just Jared and celebrity street ence will be pairing them with a rotation of style across Pinterest, but there is no one bloggers and editors where they will create destination where these looks are tagged and custom content. available for purchase. The Influence is that This month, they will be featuring Angel one-stop shop,” Catania said. Haze, Rumer Willis and Phoebe Tonkin and The Influence had a soft launch on July will also be launching a men’s vertical divi- 18 but will officially debut on Aug. 8. The sion this fall, as well as a “Beauty Section” Influence interface offers an easy navigation within the site. system and intuitive platform, lending itself The Influence team has a rich history in to an authentic shopping discovery. The site fashion. launched with more than 450 content posts Catania spearheaded The Influence com- and over 100 featured Influencers, including pany with years of experience under her Alexa Chung, Beyoncé, Alessandra Ambro- fashion belt. As a teen, the New York native sio, Rashida Jones, Elle Fanning and Aman- took her first step into the industry as a fash- da Seyfried. ion media intern at Paper Magazine. “I liter- The functionalities of the site are pretty ally stalked the intern coordinator [at Paper] straightforward. “The Influencer experience until she hired me and worked there through is tailored to fulfill and adhere to each user’s college in between attending The Art Insti- unique interests, allowing them to subscribe tute of Chicago and Central St. Martins in to the specific influencers they want to fol- London. My first [official] job was at Nylon low, as well as sign up for dedicated e-blasts upon turning 21,” she said. and weekly newsletters,” Catania said. The Catania has worked with Jane, Harper’s Influence team will update its audience with Bazaar and Elle and produced and cast fash- reports on exactly what influencers are wear- ion editorials for The New York Times, T ing head-to-toe and provide direct clicks so Magazine, Italian Vogue, GQ, In Style, Teen users can purchase the exact items they cov- Vogue, Details, i-D, Dazed & Confused, An- et (or more accessible alternatives). Visitors other Magazine, Vogue Japan and Ten. She can search and shop by several topics such has also created branded advertising and as influencer, trend, product or occasion, all viral social campaigns for Marc Jacobs, of which are integrated seamlessly into edi- Theory, Alexander Wang, Nike, Diane torial and video content, Catania said. The von Furstenberg and retailers Urban Out- shopable videos will also be in tutorial form fitters and Bloomingdale’s. where viewers can purchase items used. “We have an editorial army comprised of There is a social-media component to the media-industry veterans from Nylon, Vogue, site where visitors are encouraged to engage Refinery29 and Who What Wear,” Catania with other media such as Instagram. This fall, said. “Combining their knowledge, experi- the site will launch an interactive feature in ence and know-how, we are lucky to say we which users will have a profile and their own have the fashion media dream team who are “board,” where they can save looks and share responsible for creating a comprehensive their influencer boards with other users. [site] that has broken the mold of style-icon- The Influence’s shopable videos were influenced shopping.”—Sarah Wolfson

trade show report

Colombia Continued from page 16 noted that the double-tariff system is working. “We need to eradicate this informal sector,” he biatex in January, said that for every $8 of said. clothing produced in the country, only $1 is Fortunately for the Los Angeles handbag exported. One-quarter of that export goes to line Nicole Lee USA, the new tariff doesn’t the United States. affect purses or accessories. The company In recent years Colombia has been inun- had a first-time booth at the fair to publicize dated with a wave of undervalued Chinese ap- its six distributors in Colombia. On hand were parel that was crossing over from neighboring Samuel H. Lee, the LA company’s president; Panama and infiltrating the country. In 2012, Suzy Han, the line’s designer; and Min Lee, apparel imports rose 25 percent to $843.4 mil- the company’s chief operating officer. lion, compared with the previous year. Their booth—filled with cute and color- To combat the cheap apparel and protect its ful handbags, backpacks, shoes and accesso- industry, Colombia in March 2013 hiked its ries geared to teens and young women—was tariff rates on apparel, textiles and footwear. mobbed with people taking pictures of their The one-year law, which was recently extend- cleverly designed goods that wholesale for ed for another two years, imposes a double $38 to $45 before a 16 percent tariff. Every- Liberty tariff. There is the principal 10 percent tariff, thing is made in China. and then there is an additional $5 per kilo (2.2 “Latin America is becoming very strong for Las Vegas pounds) tariff on clothing that costs less than us,” Min Lee said, noting the company turned $10 a kilo. Footwear is subject to an additional to a distribution model two years ago to grow $5-a-pair tariff. international business. “It’s so rewarding to President Juan Manuel Santos, who flew in see the reaction from our customers here. We [email protected] from the capital city of Bogotá to open the fair, will be coming back.” ●

apparelnews.net august 1–7, 2014 CALIFORNIA APPAREL NEWS 17

01,2,15-19.cover.indd 17 7/31/14 7:54:52 PM EduCAtION

Law Continued from page 1 Patents, which are property rights specifically for an in- various Internet search engines. The characters that the Chi- vention, are rare in fashion, although handbags and shoes nese trademark office were initially using to identify “True their business. “Your chances of success are exponentially are more likely to acquire them, Riordan said. Religion” translated to “True Organized Cultish Belief” in better,” Riordan said, when people are aware of how to pro- When designers are creating their brand, they should English. Greaves argued that Internet search results showed tect themselves and their business. “If you know enough to be thinking about trademark implications and be aware of that Chinese consumers who were writing about True Reli- ask the right questions, I’ve done my job,” she said. how the mark might be problematic in another country, said gion online were using characters that translated to “True An example of the importance of increased awareness Deborah Greaves, founder of Label Law and former gen- Belief.” would be two best friends who go into business together eral counsel at True Religion, who led one of the presenta- “We were running out of options. We had to go outside without hammering out a written agreement planning for tions. With a global economy, “the days are gone when you the box,” Greaves said. various paths the company might take in the future. Some can bench your success solely on [presence] in the United might think of such an agreement as planning for failure, States,” she said. “When you adopt a mark, it’s important to Think globally but Riordan said it should be thought of as the opposite. think of a global application. Some words, such as ‘Buddha’ She described the scenario as “What happens Another example of the importance of not if we become super-successful and one of us getting caught off-guard: You appear at a trade wants to leave and the other wants to keep show with your new brand and later attempt working?” to register your trademark in Korea—only to For the attorneys attending, the seminar find out that somebody walking the show floor was an opportunity to learn more about the already registered your trademark. fashion industry itself. “If you don’t under- “You have pirates who walk trade shows. stand the industry, you’re not going to be the It’s a pattern. It’s a business. They hold your best [lawyer] you can be,” Riordan said. A big trademark hostage, and they sell it to you,” example, she said, is the importance of fil- Greaves said. “It’s the same with China—and ing for trademark protection well in advance, sometimes even worse. They have first-to-file which is the opposite of other industries. But rules,” she said. At this point, it would take because of the nature of the fashion industry, money and time to fight it. “It’s easier and trademarks are, in general, more applicable relatively cheaper to just file overseas in the than copyrights or patents for fashion, she first place.” said. Courtesy of Kim f ox Photogra P hy Companies that don’t have a strategic plan The U.S. Patent and Trademark Office de- Staci Riordan (left), director of the Fashion Law Project at Loyola Law School, and Deborah in advance for IP registration overseas are Greaves (right), founder of Label Law and former general counsel at True Religion, gave fines a trademark as “a word, phrase, symbol presentations on intellectual property at the law school’s first Summer Intensive Fashion Law giving themselves a “big problem,” according and/or design that identifies and distinguishes Program. to Greaves, especially considering the global the source of the goods of one party from economy. those of others.” Ironically, the theoretical purpose of a or ‘religion,’ could give you a problem in some countries. I Plus, having overseas IP registration helps build brand trademark, Riordan said, is for protection for the consumer, would know,” Greaves said. value, Greaves said, and can even help avoid problems with not the business itself—so that the consumer knows whom When True Religion attempted to register its mark in Chi- potential investors. If a company has pending IP lawsuits to sue if something goes wrong. na, the Chinese government denied True Religion’s trade- overseas, she said, “nobody wants to buy into that.” Unlike a trademark, the theoretical purpose for a copyright mark application because of its use of the word “religion.” Companies should plan ahead far in advance—“as soon is to protect the creator by giving an incentive to create. (The The registration was an eight-year process, which involved as you think of launching your brand,” according to Rior- U.S. Copyright Office says a copyright is for “original works the help of a linguistics expert from Yale University as dan—and consider both distribution and manufacturing of authorship fixed in a tangible medium of expression.”) well as Vice President Joe Biden, Greaves said. The pro- when putting together the list of countries in which to apply However, Riordan said, there are “so little” things that copy- cess even included a comparison between how the Chinese for trademark registration. Generally, Greaves and Riordan right law covers in fashion. (Jewelry and belt buckles have trademark office was translating the name of True Religion said, the list of possibilities should include the U.S., Korea, copyright protection because they’re separable, she said.) and how the company’s name was coming up in Chinese on ➥ Law page 19

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Law Continued from page 18 hotbed for counterfeit.” If you plan on manufacturing in saying that the shade of green gold identifies and distin- Haiti, India, Bangladesh or Colombia, apply for registration guishes the goods from those from another company. In China, Mexico, Japan, Australia and the European Union. in those countries far in advance. addition, the U.S. Supreme Court said that the color was “It’s really disheartening to build up a brand in the U.S. Greaves also pointed out the importance of planning for a nonfunctional element to the use of the product. (Certain but you can’t sell it in the EU because someone already reg- contingencies. Even if you don’t have any plans on selling features of a product that contribute to the actual function of istered it there,” Greaves said. “Infringement laws in Europe or manufacturing in China, you should still strongly con- the product might not be eligible for a trademark, according are very strong. They’re even stronger than the U.S.” sider filing a trademark application there just in case. to U.S. law.) Therefore, even during the early stages of developing a “China is rife with problems for the apparel industry,” A more recent and fashion-related example of the trade- brand name, check overseas in advance to see which names Greaves said, but trademark registration can help. marking of color that Riordan discussed was the saga of have already been registered. True Religion was able to get Chinese authorities to Christian Louboutin’s lawsuits against Zara and Yves conduct raids of factories mak- Saint Laurent regarding the use of red on the soles of their ing counterfeit merchandise shoes. Riordan discussed two reasons for why the Louboutin because the company had the company did not get the results it was looking for in court. proper trademark registration First, Louboutin himself didn’t emphasize that the specif- with the Chinese government, ic reason his company used red on the soles of its shoes she said. was to distinguish the brand from others, a key principle of trademark law. And, besides, Riordan said, it is unlikely that Likeliness of confusion a consumer would mistake the Zara shoe for a Louboutin shoe, even with the red soles. “He didn’t pick a very good When it comes to evaluating target,” Riordan said. actual claims of trademark in- Second, according to Riordan, Louboutin said in a depo- fringement, U.S. courts use the sition that he believed the use of any shade of red—not just test of “likelihood of confusion” his specific red—on the sole of a shoe should be considered among consumers. Riordan cited a violation of his trademark. AMF Inc. v. Sleekcraft Boats On the other hand, Tiffany & Co. has a trademark spe- as a set of standards for “likeli- cifically for its shade of blue because the shade is extremely hood of confusion” used by the specific. (It’s produced as a custom color by Pantone, with U.S. Court of Appeals for the a specific Pantone number, exclusively for Tiffany.) Courtesy of Kim f ox Photogra P hy Ninth Circuit (which includes The two lessons, Riordan said, are to pick your battles Attendees at the week-long Summer Intensive Fashion Law Program included designers as well California) and Polaroid Corp. wisely and to be specific in your trademarks. If Louboutin’s as attorneys. Pictured first row, fourth from left, is Staci Riordan, director of the Fashion Law Project at Loyola Law School. Pictured back row, far left, is Loyola Law School Senior Associate v. Polarad Elect. Corp. as the trademark had been more specific, Riordan said, “it might Dean Sean M. Scott. standards used by the U.S. Court have come out differently.” of Appeals for the Second Cir- Other topics in Loyola’s Summer Intensive Program in- cuit (which includes New York). cluded employment law, importing and exporting, advertis- “It’s expensive, but it’s worth it,” she said. Riordan also cited Qualitex Co. v. Jacobson Products ing and social media, licensing, building brand value, and When it comes to protecting your brand name, anti-coun- Co. Inc. as a key U.S. Supreme Court decision from 1995 the use of celebrities. The legal categories that apply to fash- terfeiting should be proactive, not reactive, Greaves stressed, regarding the use of color in trademarks. Qualitex manufac- ion obviously already exist as their own (such as intellectual pointing out Apple as a company that has been extremely tured dry-cleaning pads in a specific shade of green gold and property, employment, contracts, etc.), but Riordan sees a proactive in its international IP protection. sued rival company Jacobson Products after it began using a specific niche for fashion law continuing to be developed “Their portfolio [of international trademarks] is vast,” she similar shade on its own press pads. The Ninth Circuit had at law schools and in the legal community. “It’s going to be said. ruled against Qualitex’s claim of trademark infringement, like entertainment law in the next 20 years,” she said. Also consider filing early in Russia because, according to saying that color alone does not meet the requirements for For more about the Fashion Law Project, visit www.lls. Greaves, that country’s organized crime has created a “real a trademark. However, the U.S. Supreme Court disagreed, edu/fashionlaw. ●

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The show attracts more than 27,000 Egyptian cotton that is woven and finished and 12,211 ATMs and the Internet across North (310) 857-7558 will enjoy a stable relationship supported by a is to deliver high-quality products at competitive attendees and was recently honored by being in Japan. Styles range from classic stripes, America and internationally. (877) 554-4834 mature and experienced staff. prices, wherever they are needed for production. named Fastest 50 by Trade Show Executive in checks, and solids to novelties, Oxfords, dob- [email protected] bies, voiles, Swiss dots, seersuckers, ginghams, We understand the rush nature of this industry three categories: growth in attendance, number www.magiconline.com flannels, and more. Exclusive broadcloth and strive to meet the tight deadlines facing of exhibitors and net square footage. Surf Expo This listing is provided as a Services: MAGIC is the largest global market- The New Mart qualities: Ultimo®, Corona®, and Superba®. our customers. Another important part of our will be held Sept. 4–6, 2014, at the Orange free service to our advertisers. place for contemporary men’s and women’s Knowledgeable customer-service team, imme- business is FLASHTRAK, our online ordering County Convention Center in Orlando, Florida. 127 E. Ninth St. We regret that we cannot be apparel, footwear, accessories and sourcing diate shipping, and highest-quality textiles. system for price tickets. It’s a great tool for Los Angeles, CA 90015 responsible for any errors or resources—and the world’s most comprehen- Philips-Boyne serves everyone from at-home placing and tracking price ticket orders and will (213) 627-0671 omissions within Las Vegas sive forum for fashion buyers and brands. Every sewers and custom shirt-makers to couture soon be expanded to include custom products Fax: (213) 627-1187 and care labels. Resource Guide. February and August, the industry convenes www.newmart.net designers and branded corporations.

Directory of Professional Services & Business Resources accounting ServiceS Fit modelS Pattern Servi ceS HOVIK M. KHALOIAN PATTERNS WORLD INC. Providing pattern making and full development services for the garment industry for over 25 years. We specialize in ACCOUNTING • AUDITING CPA first through production patterns and in house sample room. TAXATION SERVICES FOR THE APPAREL INDUSTRY Salesman duplicates, small production welcome.

520 N. CENTRAL AVE., SUITE # 650 GLENDALE, CA 91203

TEL: 818.244.7200 Check us out at www.patternsworldinc.com [email protected] (213) 439-9919

cutting/grading/.marking model ServiceS Pattern & SamPle ServiceS

Sewing machine ServiceS To advertise in the Directory of Professional Services & Business Resources call June 213-627-3737 x250 or E-mail: [email protected]

apparelnews.net august 1–7, 2014 CalIFOrnIa apparel news 21

20-21advert.serv.dir.indd 21 7/31/14 7:36:58 PM CLASSIFIEDS www.classifieds.apparelnews.net P 213-627-3737 Ext. 278, 280 F 213-623-1515 www.apparelnews.net Jobs Available Jobs Available Jobs Available

WAREHOUSE SUPERVISOR Fast paced apparel warehouse requires hands-on leader- ship in a busy distribution center/warehouse environ- ment. Responsible for overseeing all daily Warehouse SALES ACCOUNT EXECUTIVE ASSOCIATE DESIGNER Operations.This is a process-driven, detail-oriented man- We are seeking Associate Designer for Contemporary agement position requiring a can-do attitude, motiva- Sanctuary Clothing is seeking a junior west coast sales Dress division. Ideal person must have 2-3 recent yrs tional leadership & stellar interpersonal communication account executive to be based in our LA showroom. exp. in Dresses. Must be exp. in all aspects of design skills. Must have experience working in contemporary wom- that includes sourcing fabric, trim, sketching with Duties include: Oversee warehouse flow including en's apparel. Drive sales to reach and exceed sales illustrator, and trend research. Must be able to meet receiving, pick & pack, returns processing, and order goals. Strong organization and communication skills re- deadlines and be extremely organized. fulfillment; supervise the coordination of logistics, quired. Ability to multitask. Experience in the off price Send resume to [email protected] and actively participate in annual inventory management. market is a plus. Experience with supply chain systems implementations Email resumes and salary requirements to required. Knowledge of Apparel Magic preferred. [email protected] PRODUCTION ASSISTANT E mail resume and salary history to: LA's largest knitting mill seeking Production Assistant [email protected]. Product Development for busy Account Executive. Sunsets Inc. is seeking a highly motivated and organized in- * 2-3 years experience in fabric or garment production dividual to join our team. Ideal candidate will assist product * Organized, detail oriented self- motivated team player Samsung C&T America in Commerce, CA development manager from initial tech pack development * Computer literate, proficient in Excel ENCAD OPERATOR through bulk QC. This position requires excellent communi- * Strong sense of urgency and deadlines Operate 2 sublimation and 1 direct dye Mimaki machine. cation skills with foreign vendors, domestic partners and Please email your resume to [email protected] Prioritize and manage Encad projects. Match colors, sample room. Must have general knowledge of stretch fab- create/correct repeats, fix designs. Communicate with rics, construction, grading and fit. Swimwear experience de- studio and sales teams. Manage inventory and sired. Microsoft Office and Adobe Illustrator skills required. troubleshoot issues to reduce downtime. 5yrs encad [email protected] experience. Proficient with Ned Graphics & Photoshop. Email resume to [email protected] CUSTOMER SERVICE REPRESENTATIVE SPEC/COSTING TECHNICIAN PVH Neckwear in Los Angeles Looking for an individual who is team oriented, highly Highly organized individual with strong attention to de- motivated, able to handle multiple tasks. Min 2 yrs pre- CUSTOMER SERVICE REPRESENTATIVE tail. Must have experience with EDI Purchase Orders that vious exp. with domestic/import costing. Must be able Multi-Division apparel firm is seeking an exp. Cust. Svc includes management of major department store orders. to develop cost sheets & spec sheets from sample. Gar- Rep to support our expanding contemporary product Must be familiar with the Purchase Order process. Com- ment construction exp. needed. Detail oriented, flexible lines. Min. 3 years exp with major apparel customers is puter proficiency in Microsoft Office with knowledge of & dependable. Proficient in AS400, Excel & Lotus Notes. req. Excellent skills in Excel and Word are a must. Must Royal4 or other ERP systems. Fax resume to: (323) 277-6830 or be very organized, detail-oriented, and able to work with A quick learner that gains expertise on reporting options email to: [email protected] a min of supervision. and proactively communicates and consults with Sales Send resume with salary history to: based on reporting information. Familiar with the NRF Tom Stevenson calendar and implications to financial goals. Candidate MGT Industries, Inc. must be focused on supporting the Sales team in achiev- 13889 S. Figueroa Street ing monthly shipping estimates. Ability to develop exper- Los Angeles, CA 90061 tise on vendor manuals, routing and compliance require- ASSISTANT PRODUCTION MANAGER E-Mail: [email protected] ments for assigned customers. With 5 yrs. of exp. in the fashion industry. Must handle Minimum Qualifications: cut tickets, order trims, daily laundry reports, costing, TECHNICAL ILLUSTRATOR High School diploma with Bachelor's Degree preferred. order entry, inventory, prepare trim sheets. Interact be- Multi-Division women's sleepwear firm has immediate Min. 2 years of order management exp. in the Apparel or tween contractors, pattern room, design room, cust. ser- opening for an experienced Technical Illustrator to sup- other consumer products. Able to effectively prioritize vice and shipping. Must have strong problem solving, port our design & merchandising team. Must have workload. A self-motivated team player with excellent excellent communication skills, good sense of urgency & strong Photoshop/Illustrator/Excel skills and excellent communication skills, both written and verbal. accuracy. CAD drawing skills. Must understand garment construc- Hourly position with Excellent benefits that include Send resumes to: fax 562 231-0742, tion and be able to apply POM's and Specs of garments 3 weeks paid vacation. [email protected] att. hiring manager. to Tech Packs. Experience working with oversea mfg. Please email resume to: [email protected] Must be able to work with minimum supervision and be very detailed-oriented. FULL-TIME SAMPLE CUTTER Send resume with salary history to: Emily Luna Customer Service & EDI tech Must have previous experience in cutting silks and MGT Industries, Inc. Juniors clothing company in the Los Angeles area high-end fashion. Ability to cut small production lots and 13889 S. Figueroa Street (90021) looking to fill customer service position. Must knowledge of marking and grading a plus. Los Angeles, CA 90061 have proficient AIMS & EDI experience. Must have Wal- Please send contact info and brief description of your Fax: (310) 538-1343 mart & Target experience as well as other majors. Expe- experience, or resume to [email protected] E-Mail: [email protected] rience with item set up for Walmart, Target & Sears is a plus. Experience with UPC and GXS catalogue is also a BAILEY BLUE: SALES EXECUTIVE plus. Must be detail oriented, organized and have a A/P Position Available strong work ethic. LA-based Junior Dress Manufacturer is seeking a -Experience processing large volumes of invoices please send resumes only to dynamic Sales Executive to join their sales team. This is -Proficiency in Word, Excel and Quickbooks [email protected] a great opportunity for a, performance-driven individual -Detail-oriented and 3 years industry experience who has a strong background working with Junior -Process vendor invoices with proper approvals, specialty chains and major department stores. Business batching and coding savvy; and strong knowledge of current juniors trends To place a Classified Ad CallJeffery -Maintain vendor contact info and data entry Please submit your resume for consideration to: 213-627-3737 Ext. 280 Submit resumes to [email protected] [email protected] or [email protected] www.classifieds.apparelnews.net

22 CALIFORNIA APPAREL NEWS august 1–7, 2014 APPARELNEWS.net

22-23.classified.indd 22 7/31/14 7:48:58 PM Jobs Available Jobs Available Real Estate GARMENT BUILDINGS Mercantile Center 500 sq. ft. - 16,500 sq. ft. Priced Right. Full Floors 4500 sq ft., Lights-Racks-New Paint-Power FIELD QC ADVERTISING SALES EXECUTIVE Parking Available-Good Freight. Seeking highly qualified Individual w / min 5 yrs * Seeking professional, energetic salesperson with Call 213-627-3754 exp.Understands all aspects of sewing construction, Apparel Industry and or Ad Agency experience. Design Patternmaker Garment Lofts repairs and finishing. Must have excellent follow up * Prefer college graduate with Advertising experience. 300 sq ft - 1,000 sq ft. skills. Valid DL and transportation. * Must know Power Point, ACT Database or other Call 213-627-3755 Email resume to [email protected] database program. Please email your resume to: Buy, Sell and Trade PRODUCTION COORDINATOR [email protected] ECKO UNLTD is seeking a highly motivated & organized indi- vidual to manage and execute the entire production process Jobs Wanted from SMS through on-time delivery of finished products. Knowledge of fabrics, finishing, garment construction, fit & Freelance Patternmaker grading is a MUST. Email resume to [email protected]. Expert draper/patternmaker. 20+ years experience all cate- AVAILABLE FOR LICENSING gories. Patterns, tech packs, fittings, samples, duplicates, PHONE:818.980.9880 and FAX: 818.980.9890 Accounts Receivable/Credit & Collection small production. Highest quality available. Downtown lo- [email protected] Seeking for an individual with min 3yrs of exp. Managing for cation. 818-679-2007. [email protected] Accounts Receivable. Making collection calls. Investigate WE NEED FABRIC charge back from customers & issue CM. Able to work with 35 yrs Exp'd Silks Wools Denims Knits Prints Solids... factors. Preparing & maintaining various reports. 1st/Prod. Patterns/Grading/Marking and Specs. Apparel & Home decorative. Pls email resume to: [email protected] 12 yrs on Pad System. In house/pt/freelance No lot to small or large... Fast/Reliable ALL AREAS Ph. (626)792-4022 Also, buy sample room inventories... ASSISTANT PATTERNMAKER Stone Harbor 323-277-2777 Ideal Candidate will have a strong understanding of fit, To place a Classified Ad Call Marvin or Michael construction, and sharp eye for details. Flat pattern expe- Jeffery rience preferred. Great time-management skills. Youthful WE BUY FABRIC! Eye and previous experience in high fashion a plus. 213-627-3737 Ext. 280 Excess rolls, lots, sample yardage, small to large qty's. Please send resumes to [email protected] or [email protected] ALL FABRICS! fabricmerchants.com Steve 818-219-3002

Coming sourcing & Fabric Aug. 8 With denim & Tech A California Apparel News Special Pullout Section

Bonus Distribution MRket 8/18–20 Riviera by CurvExpo 8/11–12 POOL 8/18–20 Swim Collective 8/11–13 Project 8/18–20 OffPrice Show 8/16–19 Project Mvmnt 8/18–20 Sourcing@MAGIC 8/17–20 Stitch 8/18–20 CurveNV 8/18–19 WWDMAGIC 8/18–20 ENK Vegas 8/18–19 WWIN 8/18–21 AccessoriesTheShow 8/18–20 Distribution also at: Agenda LV 8/18–20 Surf Expo 9/4–6 FN Platform 8/18–20 LA Textile Show 9/29–10/1 Call now for special rates Liberty Fairs LV 8/18–20 Terry Martinez (213) 627-3737 x213

APPARELNEWS.net August 1–7, 2014 CALIFORNIA APPAREL NEWS 23

22-23.classified.indd 23 7/31/14 7:50:52 PM www.lectrafashionblog.com @LectraFashion LectraFashionNetwork www.facebook.com/lectraofficiel

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