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Rebranding Helps Nudge Clothing Lines to a New Level

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Rebranding Helps Nudge Clothing Lines to a New Level NEWSPAPER 2ND CLASS $2.99 VOLUME 69, NUMber 14 March 29–april 4, 2013 THE VOICE OF THE INDUSTRY FOR 68 YEARS What’s in a Name? Rebranding Helps Nudge Clothing Lines to a New Level By Andrew Asch Retail Editor Last year, iconic fashion house Yves Saint Laurent re- named itself Saint Laurent Paris, and just recently, its parent company, PPR, one of fashion’s most esteemed companies, announced its own name change. It will be called Kering, according to Chief Executive and Chairman Francois-Henri Pinault. The new name demonstrates growth and new focus, Pinault said. “In a few months’ time we will have completely transi- tioned from a holding company with an unfocused portfolio into a cohesive, integrated, international group focused on ap- parel and accessories,” he said. Some veteran Los Angeles–area fashion lines are in the process of renaming, or “rebranding,” themselves, too. The process is risky, but rebranding can make the difference be- tween sagging sales and stellar business. In January, Los Angeles–based Corey Lynn Calter, a contemporary womenswear line, unveiled its new company Michael Cinco ➥ Brands page 4 StudioCL Loses Court Case Against Chinese Manufacturer By Deborah Belgum Senior Editor After deliberating for one day, a jury ruled on March 25 that StudioCL must pay a Chinese manufacturer more than $400,000 for money the Los Angeles apparel maker still owes the garment factory. StudioCL is also responsible for the plaintiff’s attorney fees, which could add another $400,000 to the tab in a trial that started March 11. StudioCL said it would appeal the ruling. In October 2011, Donshen Textile sued StudioCL in Los Angeles County Superior Court for $309,000 plus interest in unpaid bills due in early 2011 for clothing made under LinQ, StudioCL’s contemporary label. Studio CL, owned by Carole Little and Leonard Rabinow- itz, maintained it didn’t pay its latest bills because the apparel factory, based in Hong Kong, and a middleman, Andrew Stein of Savvy Sourcing, purposely undervalued the merchandise Odylyne in documents presented to customs officials in Los Angeles. This meant the import duty paid was reduced by as much as ➥ StudioCL page 2 INSIDE: Where fashion gets down to business SM Sarah Scott LOS ANGELES FASHION WEEK 4 3 Billabong bidding wrapping up ... p. 2 Techtextil/SPESA coverage ... p. 3 Education in Focus ... p. 8 fall style Denim Resources ... p. 9 Jen Awad For trends from the runways, see pages 6 and 7. VOLKER CORELL, JOHN ECKMIER www.apparelnews.net 01.2.4-5.cover.indd 1 3/28/13 7:22:14 PM NEWS Billabong Wrapping Up Bidding LA Firm Buys Retail- Final bids were submitted March 28 in the Capital, dropping their bids for Billabong. No e-commerce presence, and investing more in high-profile competition to acquire Australian- explanation was given by Billabong why the Billabong’s California-based brands, RVCA Security Unit From headquartered surf giant Billabong Interna- bids were being dropped. and Element, as well as Da Kine, which is tional Ltd. Billabong was riding a multi-year buying based in Hood River, Ore. A turnaround was at- Checkpoint Systems The bids came from two prominent Ameri- spree that ended in 2010 when Billabong ac- tempted in a global economy that was deemed can groups. One bid, submitted on Jan. 14 quired troubled Canadian retailer West 49 Inc. poor by Billabong management, and there was An affiliate of California private-equity by Vans owner VF Corp., headquartered in for 99 million Canadian dollars. more turbulence in November when Ted Kun- firm Platinum Equity purchased the U.S. Greensboro, N.C., and Altamont Capital of Burdened by debt and hit by a struggling kel, the chairman, retired from the company. and Canadian CheckView units from Thoro- Palo Alto, Calif., was for 1.10 Australian dol- economy, Billabong reported a steep decline in Last month, Billabong announced finan- fare, N.J.–based retail security solutions pro- lars per share in cash. its earnings, 70 percent, when it announced in cial results for the six-month period that vider Checkpoint Systems Inc. Another bid was submitted in December by February 2012 the six months’ earnings for the ended Dec. 31 2012. The company reported CheckView is a security solution cre- Paul Naude, president of Billabong’s Americas period that ended Dec. 31, 2011. a net loss of AU $536.6 million. “We have ated for retailers that includes digital video region, and New York–based Sycamore Part- To stabilize the company, Billabong sold continued to address issues of the past and monitoring; intrusion and fire safety alarms; ners Management, owner of women’s retailer 48.5 percent of Nixon, one of its most popular are seeing some positive signs emerging in a 24-hour call center for alarm dispatch; and The Talbots Inc., which also was for AU $1.10 brands, to TPG. However, Derek O’Neill, Bill- several markets,” Inman, the chief executive, online tools to monitor safety and theft and per share in cash. abong’s chief executive officer, was fired and said in a prepared statement. “Our focus generate reports for follow-up and to iden- The purchase of the troubled surf giant replaced by Launa Inman, who was a former remains on simplification of the business, tify crime patterns. could bring calm after a long period of turmoil managing director of Target Australia. reducing costs, and continuing to build a Last year, CheckPoint Systems’ board of for Billabong, which has been recently marked Inman worked to set Billabong on the right culture of transparency and accountability, directors decided to spin off CheckView as a by departures of top executives, as well as two track with a program that called for closing 82 providing a platform for future growth for stand-alone business and reported in its 2012 suitors, TPG Capital and, reportedly, Bain bricks-and-mortar stores, building a greater our brands.” —Andrew Asch annual report that the unit discontinued op- erations. “We are excited about the prospects for Studio CL Continued from page 1 governing textiles and apparel.” voices. “Leonard Rabinowitz’s allegations CheckView under our ownership,” said StudioCL filed a cross-complaint in the were clearly a desperate attempt by a des- Platinum Equity principal Jason Leach in a 75 percent in some cases, even though Studio- case, maintaining that Donshen Textile, perate man to avoid paying his bills,” she statement. “Platinum has an extensive track CL was paying the higher value, court docu- owned by John Chen, and Savvy Sourcing said after the court case was over. record of acquiring corporate divestitures ments said. had been getting StudioCL merchandise In the apparel contract with Donshen and maximizing their potential as standalone Four years ago, U.S. Customs and Border through customs using false dollar amounts, Textile, Rabinowitz and Little personally businesses. CheckView will act as a plat- Protection launched “Operation Mirage” to which is illegal. guaranteed any monies owed the Hong form acquisition and allow us to focus on the deal with a wave of undervalued textiles com- Rabinowitz said this went against assur- Kong apparel factory. That means they can- core business while pursuing organic growth ing in from China. ances from Donshen Textile that everything not have their company declare bankruptcy initiatives and strategic add-ons in a highly The merchandise was shipped landed duty was being done by the books. to avoid paying the judgment. fragmented space.” paid (LDP) as opposed to free on board (FOB). But the jury disagreed. “The jury ruled Rabinowitz said the jury did not make a Founded in 1995 by Tom Gores, Plati- Rabinowitz, who for years shipped his mer- for the plaintiffs on all counts,” said Paul determination for the undervaluation of the num Equity has holdings that include busi- chandise FOB, switched to LDP in 2010. But Kurtzhall, one of the attorneys for Donshen garments and that Customs and Border Pro- nesses specializing in manufacturing, medi- he said in court documents he was concerned Textile and Savvy Sourcing. tection has an open investigation into the cal equipment sales and services, telecom, there were risks in this shipping method. Con- Attorney Betty Levine, also representing transactions. transportation and logistics, IT services and sequently, all his confirmation orders had a Donshen Textile and Savvy Sourcing, said “We were disappointed that the jury was software, distribution, entertainment, equip- clause that stipulated that “seller warranties StudioCL was using the FOB/LDP issue as unable to connect the dots,” Rabinowitz said. ment rental, and service and hospitality. that the subject goods conform to all U.S. laws a “red herring” to get out of paying its in- “We feel confident that justice will be had.” ● —Alison A. Nieder Five Star Blue Lands Izod Denim License New York–based PVH Corp. struck a licens- sale at major department and specialty stores ing deal with New York–based Five Star Blue in the United States, Canada and Mexico. LLC for a collection of men’s denim under the Five Star Apparel produces sportswear and Izod label. The agreement runs through 2018. denim for men and children for Hudson Kids, The deal calls for Five Star Blue to pro- WESC, Company 81, Wendy Bellisimo, duce and distribute men’s denim pants and Vigoss Girls, Akademiks, Enyce and NBA- shorts in regular and big-and-tall sizes for licensed Zipway activewear.—A.A.N. CalendarCalendar April 2 San Francisco Through April 10 Through April 9 “How to Create a Press Kit That April 10 the Media Will Love” webinar, Coast presented by Fashion Business River East Art Center PeruModa Inc. Chicago Jockey Exhibition Center online Through April 9 Lima Las Vegas International Lingerie Through April 12 April 6 Show Stylemax Rio All-Suite Hotel & Casino April 11 Merchandise Mart Las Vegas Atlanta Apparel Market Chicago Through April 10 AmericasMart Through April 9 Atlanta April 9 Through April 15 April 8 Printsource LA Majors Market Penn Plaza Pavilion California Market Center New York There’s more Los Angeles Through April 10 on ApparelNews.net.
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