NEWSPAPER 2ND CLASS

$2.99 VOLUME 74, NUMBER 52 DECEMBER 21–27, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS

NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS L.A. Textiles Executives

$2.99 VOLUME 74, NUMBER 1 JANUARY 5–11, 2018 $2.99 VOLUME 74, NUMBER 2 JANUARY 12–18, 2018 $2.99 VOLUME 74, NUMBER 7 FEBRUARY 16–22, 2018 $2.99 VOLUME 74, NUMBER 9 MARCH 2–8, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS Lost Finds Territory Agenda Vendors Ponder TRADE SHOW REPORT The Big Issue of Show’s Future After A Successful Holiday Season for New Stores Founder’s Exit Reaps Benefits in Las Vegas Microfibers in AB 2379 Sentenced to Prison for By Andrew Asch, Deborah Belgum and Dorothy Crouch By Andrew Asch Retail Editor By Dorothy Crouch Associate Editor By Andrew Asch Retail Editor Agenda celebrated its 15-year anniversary with talk of LAS VEGAS—An air of optimism blew through the vari- what will happen to the streetwear, action sports and lifestyle ous trade shows held Feb. 10–14 in Las Vegas as many re- Last month, state Assembly member Richard Bloom intro- Lost, a surf brand that’s about 25 years old, initially de- trade show now that its founder, Aaron Levant, is leaving. tailers were encountering empty shelves in their warehouses duced Assembly Bill 2379 to the California State Legislature. fined itself as a company that makes world-class surfboards A few days before the Jan. 4–5 event started at the Long from a robust holiday season, which set up a willingness to The bill would require manufacturers of clothing that comprises bearing the logo …Lost. But over the last few decades, the Beach Convention Center, news broke that Levant would be place orders and stock up for the upcoming seasons. more than 50 percent polyester to include a label recommend- brand has evolved beyond surfboards to surfwear with plans leaving Agenda and its parent company, Reed Exhibitions, to That was the word at the shows at the Las Vegas Con- ing consumers bypass the washing machine and handwash for retail expansion. start a new, unnamed venture. vention Center—which held Sourcing at MAGIC, WWD- these items instead. In the next couple of years, Joel Cooper, Lost’s chief ex- Hervé Sedky, Reed’s regional president for its Americas MAGIC, FN Platform and WSA@MAGIC—and at the It is Bloom’s hope that spelling out these instructions will ecutive and co-owner, forecasts the label will open six stores other end of the Las Vegas strip at the Mandalay Bay Con- lead to increased consumer awareness of the potential environ- in Hawaii with the retail push being led by surf-industry vet- Agenda page 8 vention Center, which hosted a number of UBM-organized mental threats he says occur from synthetic microfiber shed- eran Scott Trudon. MAGIC Marketplace shows that included Stitch, Project ding. In early February, the company, headquartered in Irvine, and Project Women’s, Pooltradeshow, The Tents, The “Some of the [bill] advocates think that we should be mov- Calif., is planning to open a new store in Maui, and in April A Father-Daughter Collective and Curve. ing toward more draconian solutions, like banning synthetic Laundering Mexican another outpost should debut in the Ala Moana Center mall Other shows taking place around the city were Wom- clothing. Those would have greater consequences that don’t in Honolulu. Team Launches a enswear in Nevada at the Rio All-Suites Hotel & Casino; make sense,” said the Democrat, whose district office is head- In addition, the brand is well represented at leading core Los Angeles Denim Line IFJAG, a show for jewelry distributors, at The Embassy quartered in Santa Monica. “We need to become more aware, surf shops. In California it has been sold at Jack’s Surf- Suites; and a trio of shows at the Sands Expo and Conven- continue the research and take reasonable steps to reduce the boards, Huntington Surf & Sport, Surfside Sports, Sun By Deborah Belgum Executive Editor tion Center and The Venetian ballrooms. amount of microfibers in our aquifers and go where the re- Diego and Tilly’s. But nothing beats owning your own loca- Las Vegas page 8 Assembly Bill 2379 page 3 Lost page 21 The constant whir of sewing machines and the drumbeat of downtown LA traffic echo through the second-story design studio occupied by Su Kim and her father, Jim Kim. INDUSTRY VOICES Mannequins attired in some of the latest creations crafted New Owners of American by designer Su Kim dot the vast space while racks filled with Drastic Shifts Seen in Agenda Founder patterns constructed by patternmaker Jim Kim are strategi- Apparel Set Goal to cally placed around the design studio. Endorsement Deals In the back of the studio, three garment workers are Double Sales This Year Cartel Drug Money Leaving Trade Show Father’s Daughter page 6 Between Celebrities By Deborah Belgum Executive Editor By Andrew Asch Retail Editor and Fashion Labels INSIDE: It has only been a little more than one year since Gil- Aaron Levant, founder of the Agenda trade show, said Where fashion gets down to business SM By Matthew Syrkin Contributing Writer dan Activewear acquired the intellectual-property rights of that he will be leaving the streetwear-focused trade show to American Apparel, the decades-old Los Angeles apparel work on entrepreneurial projects outside the world of fash- Product endorsements from Hollywood stars, professional company that twice declared bankruptcy in a little more than ion and trade shows. athletes, pop stars and supermodels have always played a piv- one year. “I’ve spent the majority of my adult life doing this. It’s otal role in driving sales and generating visibility for fashion At its peak, American Apparel’s revenues climbed to been an amazing journey. I’m super excited for everything brands. In fact, over the past 20 years, the agreements under nearly $634 million in 2013 before the long descent of the By Deborah Belgum Executive Editor I’ve done. I’m grateful. But I’m always pressing myself to which celebrities were engaged to endorse brands in the fash- company founded by Dov Charney in 1989. continue learning and challenging myself. Unless I want 6 8 ion industry have remained rather stagnant in both form and Gildan took formal control of American Apparel in Feb- to become the CEO of a major trade-show conglomerate, After the Boardriders acquisition ... p. 2 substance. ruary 2017 and had a little more than one month to ramp up which I’m not sure that I aspire to do, I look for a new chal- The industry “template” offered an acceptable range of busi- new production and then get the label in front of wholesalers Shoppers and technology ... p. 4 lenge to learn something new. That’s a lot of what the deci- Lacing Up ness and legal terms and conditions that both sides acknowl- and consumers again. In that first year, Gildan took in $50 sion comes down to. Now I’m going to start from the ground New Lines ... p. 5 edged as “market” for the space—from compensation structure million in sales. This year, the goal is to double sales to $100 up with something new,” Levant said during an interview in For his latest collection, UBM Fashion partners with CFDA ... p. 9 and must-wear requirements to non-disparagement and conduct million. the Agenda office in downtown Los Angeles. clauses. Deviations from the status quo were infrequent in these Fashion and Finance Resources ... p. 9 Key to boosting revenues is the marketing team, which is Levant, at the age of 19, started Agenda in 2003 as a trade Kevan Hall looked back to the deals, particularly in those involving established celebrities. located in Los Angeles even though Gildan is headquartered South of the Border Levant page 4 Textile Preview & Resource Guide ... special pullout section page 3 Celebrity Deals American Apparel page 3 1970s with jumpsuits infused www.apparelnews.net MEDIEVAL TIMES For her pre-Fall collection, 7 The owners of Pacific Eurotex Corp., a textile company INSIDE: with sophisticated lace and INSIDE: INSIDE: Trina Turk turned her design SM SM Where fashion gets down to business Where fashion gets down to business Fernando Alberto was one of several Where fashion gets down to business SM flared pants. RED CARPET READY eyes to Latin America for an designers who showed during New York infusion of brilliant colors and For more styles, see page 2. Tadashi Shoji was rooting Fashion Week. For more looks, see page 6. in Los Angeles, were sentenced to federal prison after they prints that say “Olé.” for strong women in his

Cross-hatch chambray is LANLY LE 8 18 3 7 7 8 heavily represented as are Fall/Winter 2018 collection Container volumes to climb ... p. 2 Agenda names new executive ... p. 2 Retail Sales ... p. 2 that dazzled on the runway fringed tops and ruffles. Mad Engine Acquires Mighty Fine ... p. 2 Bachrach stores close ... p. 3 pleaded guilty last year to federal money-laundering and Waterwear Special Section ... p. 5 For more from the capsule at New York Fashion Week. MadaLuxe has a new CEO ... p. 2 Gap earnings up ... p. 4 Swim Shorts ... p. 16 New Materials Show in Miami ... p. 4 collection, see page 4. For more looks, see page 6. MR Magazine sold ... p. 9 Fashion Resources ... p. 9 Resource Guide ... p. 9 JONATHAN SKOW www.apparelnews.net FRAZIER HARRISON/GETTY IMAGES www.apparelnews.net ARUN NEVADER/GETTY IMAGES www.apparelnews.net tax-evasion charges.

01,4,21.indd 1 1/4/18 6:03 PM01,6,8.cover.indd 1 1/11/18 5:09 PM 01,3,8-9.cover.indd 1 2/15/18 7:00 PM Four years ago, Pacific Eurotex and about 75 other com- NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS panies were caught up in a vast raid by more than 1,000 fed-

$2.99 VOLUME 74, NUMBER 11 MARCH 16–22, 2018 eral and state agents who fanned out across the Los Angeles $2.99 VOLUME 74, NUMBER 13 MARCH 30–APRIL 5, 2018 $2.99 VOLUME 74, NUMBER 14 APRIL 6–12, 2018 $2.99 VOLUME 74, NUMBER 17 APRIL 27–MAY 3, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS TRADE SHOW REPORT TRADE SHOW REPORT TRADE SHOW REPORT American Rag Talks LA Market Sees Showrooms Booth Space Goes Quickly and Stores Adjusting to the New Adventures About Its New Retail Path Fashion District to crack down on a long-running money- ‘New Normal’ in Retail at the LA Men’s Market in Selling at LA By Andrew Asch Retail Editor By Andrew Asch Retail Editor American Rag Cie is going to the Persian Gulf and pos- By Andrew Asch, Deborah Belgum and Dorothy Crouch sibly points beyond. Vendor space was sold out at the LA Men’s Market for Majors Market Mark Werts, cofounder and chief executive officer of the Buyers fanned out to the various showroom buildings in the laundering scheme benefiting two drug cartels in Mexico. its March 27–28 run at the California Market Center. retail chain, which has been an important part of the Los By Dorothy Crouch Associate Editor Los Angeles Fashion District for the March 12–14 run of Los Sannia Shahid, LAMM’s show director, said the event Angeles scene since the 1980s, is planning in September to Angeles Fashion Market, which was highlighting the fashions had its best traffic and the most vendors ever since the show open a 9,300-square-foot emporium in The Dubai Mall in for Fall/Winter 2018. started in October 2013. About 145 vendors exhibited com- This edition of LA Majors Market, held April 3–5 at the the United Arab Emirates with other locations in the Persian The market’s three days of activity were punctuated by the pared with 130 last year. California Market Center during Passover and only days after Gulf to follow in places including Abu Dhabi, Kuwait and arrival of President Donald Trump, whose entourage stayed at There were some complaints that the timing of the show Easter, offered an elevated mood at many showrooms. Saudi Arabia. the InterContinental Hotel in downtown Los Angeles, creat- could have been better because many people were out of Vendors were excited about appointments with trusted retail Also on his retail roadmap are proposals to open stores in The total amount of cash and property seized was more than ing a constant traffic jam that started Tuesday afternoon and town during spring break. Shahid said she did consider the partners as well as establishing new relationships. Buyers from India and China. Meanwhile, he is reorganizing his Japanese ended Wednesday morning. show’s timing, but she didn’t believe it hurt traffic. Macy’s, Belk, Charlotte Russe, Fashion Nova, Windsor, operations, which means closing his last five stores, where At this market, many showroom owners felt buyers were The recent show was the second time that Los Ange- Forever 21, Bluenotes, Century 21, Burlington Coat Fac- once there were 17. That leaves room to open a Tokyo em- only visiting the brands they felt comfortable with and not ex- les–headquartered WVS Brgde exhibited at LAMM. WVS tory, Ross, Von Maur, TJ Maxx and Dillard’s searched for porium sometime in 2019 while American Rag’s Japanese ploring untested labels. Attendee traffic throughout the district Brgde founder Brian Boles planned to make LAMM a sig- vendors who could best prepare them for Fall and help them e-commerce operations will continue. was hit and miss, depending on the building and the showrooms nificant part of the brand’s trade-show calendar. “You can navigate through changes in consumer demand. The overseas growth is taking place while American as e-commerce takes a chunk out of sales that had once been bring out as many orders here as any other show,” Boles said. Retailers found a fresh, new approach to the LA Majors Rag’s domestic stores are scaling back. The company’s $140 million. allocated only to boutiques and stores. Mimi Nguyen, WVS Brgde’s design associate, gave the Market the first day and hoped this momentum would continue 12,500-square-foot store in the Fashion Island mall in New- At the California Market Center, traffic was slower than show high marks for its pace of business. “It’s more relaxed. throughout the week. port Beach, Calif., closed in January after a 12-year run, and LA Market page 6 LA Men’s Market page 9 Majors Market page 12 American Rag page 9 INDUSTRY FOCUS: FINANCE During the Fashion District raid, called Operation Fash- Making Tall Women Z.Cavaricci The Tariff Scare Keeps Upcycle Stands Up Comfortable in Their Invests Deeper Apparel and Textile for Sustainable Own Skinny Jeans Into a Comeback Companies Hopping Manufacturing ion Police, law-enforcement officers found $35 million in By Dorothy Crouch Associate Editor By Andrew Asch Retail Editor By Deborah Belgum Executive Editor By Dorothy Crouch Associate Editor

When women who measure at least 5 feet 9 inches tall When you think of fashion from the 1980s and 1990s, the President Trump launched a trade war in March by im- After 16 years at American Apparel, Tabitha Vogelsong shop for denim, they are often left feeling as though styles Z.Cavaricci brand might come to mind. posing a 10 percent tariff on aluminum and a 25 percent tar- and John Chung were on a mission to create a responsible such as flares or skinny jeans will end up resembling cropped With its high waist, baggy legs and tapered ankles, it was iff on steel coming from countries around the world. apparel brand. gauchos or capris. worn in the more stylish enclaves during the era of Presi- Soon after, China retaliated by imposing import taxes on In February 2017, the two launched Upcycle based upon cash stuffed in cardboard boxes at a condo, whose owner Standing at 5 feet 11 inches, former model and actress dents George H.W. Bush and Bill Clinton. a number of U.S. products, including wine, almonds and a mutual desire to reshape garment manufacturing and the Kathryn Brolin decided it was time to launch Midheaven It was so popular that in 1991, Jim Cavaricci, the brand’s pork. perceptions by consumers about how their clothing is made. Denim to provide solutions for other tall women who want founder, said he sold 3 million pairs of the line’s “Cateye” The president’s next battle plan was to slap on more tar- Right now, Vogelsong and Chung, the brand’s chief execu- to find their ideal denim. pants. At its peak, revenues for the company reached $140 iffs by drawing up a list of Chinese-made goods that he be- tive, are making premium blank T-shirts as well as fleece

“Midheaven targets tall women like me who are looking million. lieves should be subjected to import taxes. TIM REGAS tops and hoodies. for inseams a bit longer than what is usually found out there, But about a decade ago, the designer pulled the plug on Fortunately, President Trump decided to keep clothing and COACHELLA COOL: Influencer Evangelie Smyrniotaki was in Palm Springs for the various music-oriented Coachella events, “I think one thing that has happened is fast fashion and but we’ve been so pleased to see that women of even average wearing an outfit that was perfect for the hot weather in the desert. For more trends from Coachella, see page 6. was not named. At a Bel-Air mansion, again whose own- the brand because he didn’t like the direction the label was footwear off the list of Chinese goods that would be taxed. people don’t understand that you shouldn’t be able to buy a heights are ordering and absolutely loving their Midheav- heading. “Somehow we found ourselves in juniors,” he said. But it was still a warning sign that tariffs could still be a pos- shirt for $5,” explained Vogelsong, who was the vice presi- ens. So, they’ve been rolling, they’ve been hemming, they’ve “I didn’t like it. I was tired of people beating us up for prices. sibility in the ever-changing trade world. Tariffs were placed dent of sales and merchandising at American Apparel and been self-altering their jeans.” We closed and walked away.” on machinery used in apparel and textile manufacturing. has the same title at Upcycle. “You should not be paying less With a soft launch of four styles in January, Brolin is aim- Since then, Cavaricci has worked from Orange County, With this in mind, the California Apparel News talked for your shirt than you do for a latte.” Midheaven page 3 Fall Finery Z.Cavaricci page 2 Finance page 8 Oak NYC Moves to Row DTLA Upcycle page 8 er was not named, another $10 million in cash was found 9 By Andrew Asch Retail Editor be opening its first downtown LA location. INSIDE: For his Fall 2018 collection, David INSIDE: INSIDE: In a way, this new location is a bit of déjà vu. That’s be- INSIDE: SM Where fashion gets down to business Where fashion gets down to business SM Where fashion gets down to business SM After a four-year run in the Beverly Boulevard shopping cause the New York–headquartered brand had a store on Where fashion gets down to business SM Meister created formal pieces district of Los Angeles, Oak NYC closed its 4,500-square- Broadway and Ninth Street in downtown’s Fashion District foot boutique earlier this month and relocated to the Row that ran for a couple of years before closing in 2015. GAME OF FASHION with ornate accents and intricate DTLA enclave in downtown Los Angeles. The store’s traffic plummeted after a parking lot next to Laundering page 3 Oak’s lease for its Beverly Boulevard store had expired, the store closed to make way for a new apartment complex embroidery. Looking beyond this cofounder Jeff Madalena said, and the shop’s multi-brand called Broadway Palace. This ethnic look created by Los Angeles selection of merchandise had changed to being more vertical. The new Oak shop has a view of the brand’s old headquar- 2 4 fall, he also shared his prediction 6 9 6 7 It doesn’t take as much space to showcase a single brand as ters. From 2013 to 2015, Oak was owned by American Ap- 2 3 designer Nathalia Gaviria was seen at Art opposed to many. parel, which manufactured Oak garments at its downtown Its 2,000-square-foot space at Row DTLA will devote LA factory. Law firm departs Guess ... p. 2 for a shift in coming seasons. For FALL TRENDS Differential Brands reports revenues ... p. 2 Maui & Sons ... p. 2 Billabong agrees to Boardriders merger ... p. 3 some square footage to other brands, but the majority of the American Apparel sold Oak back to Madalena and Terline in Hearts Fashion during Los Angeles Fashion Tradesy acquires styling service ... p. 2 industrial-chic space will be devoted to the Oak brand. 2016 during its first bankruptcy filing. At the beginning of 2017, Gap pushes factories to digital ... p. 2 Desert Hills Premium Outlets expansion ... p. 3 Guess goes sustainable ... p. 3 more looks from David Meister, Major partner sells interest in The Bloc ... p. 4 Madalena and Oak cofounder Louis Terline were inter- Gildan Activewear acquired American Apparel’s brand name Week. For more looks, see page 8. Understanding PLM ... p. 3 New exec at SPESA ... p. 3 A mobile take on PLM ... p. 3 Directives West took a look at what will be in style for Fall/Winter 2018 Haggar buys menswear company ... p. 4 ested in opening a downtown Los Angeles store, but they and moved its manufacturing out of downtown Los Angeles. Resource Guide ... p. 9 see page 7. Education in Focus ... p. 8 wanted a place that offered parking. Row DTLA offers Madalena said it was funny being given a tour near his in a runway show attended by buyers in town for LA Majors Market. Resource Guide ... p. 13 a sprawling, multilevel parking structure and is in a retail old offices. “During all the meetings, real-estate developers Bangkok Style fair ... p. 6 For more from the show, see page 11. neighborhood where prominent streetwear boutique Bodega would explain the site. I would say, ‘Well, we had offices ● ARUN NEVADER/GETTY IMAGES www.apparelnews.net BOG Collective dress is located and the highly anticipated restaurant Tartine will over there for years.’” COURTESY OF JS GROUP www.apparelnews.net NORMAN ZELLER www.apparelnews.net www.apparelnews.net

01,3,6-7.indd 1 3/15/18 5:44 PM01,2,9.indd 1 3/29/18 5:33 PM 01.8-10,12.cover.indd 1 4/5/18 5:25 PM 01,8-9.cover.indd 1 4/26/18 5:46 PM NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS Former Brooks Brothers

$2.99 VOLUME 74, NUMBER 32 AUGUST 3–9, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS

$2.99 VOLUME 74, JUNE 29–JULY 5, 2018 $2.99 VOLUME 74, NUMBER 30 JULY 20–26, 2018 $2.99 VOLUME 74, NUMBER 36 AUGUST 31–SEPTEMBER 6, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS Instagram and Social BioCellection Breaks Surfwear Wades Media Make Stronger Destination: Denim Down Sustainable Through Questions Plays for Fashion City Los Angeles Manufacturing By Andrew Asch Retail Editor on Diversity By Dorothy Crouch Associate Editor Building on Rodeo Sells By Dorothy Crouch Associate Editor By Andrew Asch Retail Editor Could Instagram become the shopping mall of the fu- ture? Denim City is an impressive educational institution As pollution from apparel production continues to bring During the past decade, the surfwear business has been Recently, the San Francisco–headquartered Internet giant that has a jean school that incorporates a three-year denim- greater attention to clothing manufacturing, many compa- soul-searching after some high-profile bankruptcies, new expanded its shopping features so that brands will not only development program to train people in all aspects of the nies are seeking more-sustainable materials to produce their fashion trends and a rapidly changing retail landscape that be able to offer goods on Instagram’s main feed but also be blue-jeans industry with courses, workshops, access to the goods. has challenged the category’s prominence. able to sell on Instagram’s “Stories” feature, which is viewed showrooms of world-renowned denim designers and a retail Efforts such as The North Face’s Renewed line sell re- Some suggest that one solution for the surfwear blues by 600 million people, according to the company. space for consumers. furbished styles at a lower cost to consumers. Los Angeles– is to expand the tribe beyond the typical customer who has With this new feature, brands and retailers are ramping With so much concentration on denim and blue jeans, one based Upcycle utilizes yarns produced from recycled plastic been seen as the stereotypical sun-kissed blond, blue-eyed up to build a bigger presence on the social-media site, which would assume that Denim City is located in Los Angeles, water bottles and scraps that would otherwise go into land- model or athlete seen wearing the clothing and featured in debuted in 2010 and two years later was acquired by Face- the world’s denim manufacturing center. But it’s not. It is fills after production. advertisements and social-media posts. book for $1 billion. located in Amsterdam. These initiatives have shifted fashion’s manufacturing fo- The solution is to expand marketing and advertising In the past few years, social-media companies have Denim City was founded in 2014 as a collaboration be- cus toward a more sustainable direction. According to Men- campaigns to include a more diverse customer and hire ex- focused on developing their fashion business. In 2015, tween the House of Denim Foundation and denim leaders lo Park, Calif.–based technology startup BioCellection, only ecutives and designers who don’t look like the stereotypical Instagram hired Eva Chen, a former Lucky Magazine editor, with a mission to improve production through cleaner, more 8 percent of the world’s plastic packaging is recycled. The surfer. to serve as its head of fashion partnerships. It’s her job to sustainable and less pollutive methods. other 92 percent is too contaminated or difficult to recycle. That message was delivered by Bobby “Hundreds” Kim, Instagram page 6 Now some blue-jeans veterans in Los Angeles are work- Products such as plastic wrap have not been recyclable—un- the co-founder of Los Angeles streetwear brand The Hun- ing toward developing a similar initiative and asking, “Why til now. dreds. In May, Kim made a speech at the annual “Surf Sum- has this taken so long to bring it here?” for $245 Million TRADE SHOW REPORT BioCellection page 3 Surfwear page 3 Denim City page 3 Both Buyers and Exhibitors Circular Systems Miami Swim Week Events Draw Make the Most of a Quiet Apparel Production in Buyers and Brands to the Beach Los Angeles Fashion Market Hits Boot Camps to By Dorothy Crouch Associate Editor Mexico Will Change By Andrew Asch and Dorothy Crouch MIAMI BEACH, Fla.—During Miami Swim Week 2018, By Andrew Asch Retail Editor Learn Sustainability SwimShow, Cabana and Hammock provided distinctive Summer is the time to be on vacation, and that seemed Slightly Under NAFTA 2.0 spaces for buyers who are searching for a creative approach to be the case for buyers at the recent Los Angeles Fashion By Andrew Asch Retail Editor to swimwear and resort pieces. While the shows occurred Market, where traffic was much sparser than at other shows. By Deborah Belgum Executive Editor July 12–16 to offer spaces for brands and buyers to meet, The July/August event for Holiday/Resort traditionally Isaac Nichelson is on a mission. He wants to make the fash- many of the events branched out to provide experiences such has been slower than other fashion markets because so many The renegotiated free-trade deal between the United ion industry more sustainable and deal with a predicted decline as fitness activities, beauty and wellness booths, and social retailers and store buyers are saving their time and money to States and Mexico has a new name and a new set of rules in the supply of natural fibers for textiles. events. attend the gargantuan Las Vegas trade shows in a few weeks, that will make it a little more difficult to manufacture ap- In 2017, he founded Los Angeles–based Circular Systems In addition to the traditional trade-show events, fashion- when large convention centers are filled with everything parel in Mexico. with Canada-based entrepreneurs Yitzac Goldstein and Geof show producer Art Hearts Fashion showcased swimwear from footwear and accessories to apparel and swimwear. From what trade experts know, the changes for apparel Kime, who have backgrounds in textile science, plastics engi- and resort brands on the runway while presenting artistic Many of the buyers who showed up at the showrooms at in the new free-trade accord, now being called the United neering and sustainable agriculture. The company is a clean- works throughout Faena Forum. the California Market Center were looking for alternatives States–Mexico Trade Agreement unless Canada decides tech new-materials venture working on solving problems that At Cabana’s partner show, Paraiso, the inaugural runway to the Las Vegas shows or enjoying the special attention they to continue negotiating, aren’t draconian. That is probably will pop up with a growing population. event blended celebrity-studded shows with music, art, in- could get during the July 30–Aug. 1 run of the market. because the United States doesn’t have a trade deficit with Rodeo Drive continues to rank as the most expensive “Over the next 15 years, the world needs 40 percent more dustry panels and wellness activities in a festival atmosphere LA Market page 8 Mexico when it comes to apparel and textiles under the cur- textiles, and cotton may only be able to supply 10 percent of in Collins Park. rent North American Free Trade Agreement. this growth,” Goldstein said. With three trade shows and runway shows divided be- We export about $8 billion a year in apparel and textile To take care of this, Circular Systems created a division tween two venues, there was plenty to see and do during INSIDE: products—mostly fabric and other raw materials—and im- called Agraloop, which transforms food-crop waste—includ- Miami Swim Week. Find an inside look covering the trends Where fashion gets down to business SM port about $5 billion. ing pineapple leaves, sugar-cane bark and oil-seed hemp—into that buyers want and the ways swimwear brands are meeting But still, the full details of the accord haven’t been revealed commercial real estate in Los Angeles County. Circular Systems page 2 these demands on pages 3, 8 and 9. NAFTA page 3

8 INSIDE: INSIDE: INSIDE: GEOMETRIC DESIGN SM SM SM Where fashion gets down to business Where fashion gets down to business La Dolce Vita Where fashion gets down to business CRUISIN’ IN 2019 The Marciano label made faux 2 4 That was reinforced with the recent sale of the former California cool and art- fur one of its statement pieces for its Miami Beach was hot in more ways than one when Miami Swim FIDM names new co-chairs ... p. 2 deco design came to Fall 2018 collection of sophisticated looks. LA considers ban on fur sales ... p. 2 Week was filled with runway events showing off the latest in For more from the lineup, see page 7. ReMode adds to lineup ... p. 4 FASHION TEMPO the forefront in the most Marciano

RAYAN AYASH Harmony and color were front and center in the Resort 4 6 swimwear fashion for Resort and Cruise. Miami SwimShow, Cabana, 2 8 Fashion Resources ... p. 9 7 8 Brooks Brothers flagship at 468 N. Rodeo Drive in Beverly recent Wolk Morais collection created by Trina Turk, known for her styles that Differential Brands acquires portion of Global Brands ... p. 2 Hammock and the new Paraiso opened their doors with booths and Gap sues Westfield ... p. 2 Guess’s second-quarter results ... p. 2 collection. For more New name at The North Face ... p. 2 INSIDE: A CALIFORNIA APPAREL NEWS SPECIAL SECTION www.apparelnews.net are always colorful. For more looks, see page 6. runway shows running July 12–16. Art Hearts Fashion also organized Miami SwimShow ... p. 3 New Macy’s pop-up stores ... p. 2 images from the runway FIDM lessons for future designers ... p. 3 Cabana ... p. 8 Forever 21’s new AI e-commerce feature ... p. 4 National Jewish fund-raiser ... p. 8 a host of runway shows with lots of swimwear on the catwalk. For Hammock ... p. 9 Made in America Resources ... p. 9 show, see page 7. Made in California Resources ... p. 9 With Hills, which went for $245 million. Brooks Brothers opened more from the shows, see pages 6–7. Agua Bendita TECH GETTY IMAGES SIMON SOONG Sourcing & Fabric JONATHAN SKOW www.apparelnews.net www.apparelnews.net www.apparelnews.net a new flagship in November at the recently remodeled Bev-

01-3.cover.indd 1 6/28/18 4:44 PM01,3.cover.indd 1 7/19/18 5:35 PM 01,6,8-9.indd 1 8/2/18 5:55 PM 01,3.cover.indd 1 8/30/18 6:08 PM

NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS NEWSPAPER 2ND CLASS This is the address box. The size is 1.5 x 3.7 inches erly Center. The original asking price for the former Brooks Brothers

$2.99 VOLUME 74, NUMBER 38 SEPTEMBER 14–20, 2018 $2.99 VOLUME 74, NUMBER 41 OCTOBER 5–11, 2018 $2.99 VOLUME 74, NUMBER 43 OCTOBER 19–25, 2018 $2.99 VOLUME 74, NUMBER 45 NOVEMBER 2–8, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS THE VOICE OF THE INDUSTRY FOR 73 YEARS site was $300 million. The structure was up for sale by the New Los Angeles Retail Vendors at L.A. Majors U.S. Tariffs on Textile Imports New Tariffs on Chinese District to Be Unveiled Market Claim Good Biz From China Lead to Trade Opportunities Elsewhere Goods Have Apparel trust of the family of Margaret J. Anderson, who built the Near the Ocean Despite Lighter Traffic By Dorothy Crouch Associate Editor Manufacturers Worried By Andrew Asch Retail Editor By Andrew Asch Retail Editor By Deborah Belgum Executive Editor With new tariffs being placed on textiles coming from When Caruso, a well-known Los Angeles developer, un- Retailers placed orders and brands introduced new denim China, many U.S. fabric importers are scrambling to find When U.S. tariffs were levied in September on $200 bil- veils Palisades Village in a week, it will answer the question lines at the semiannual L.A. Majors Market in an ambience new textile trading partners whose goods are not subject to lion worth of Chinese imports, some apparel companies saw about whether the high-flying company behind the game- pink stucco Beverly Hills Hotel in 1912. where vendors thought that buyer traffic was slower than in pre- the recently imposed 10 percent tariff that could rise to 25 the writing on the wall even if they wanted to erase it. changing The Grove shopping mecca still has its magic vious years. percent at the beginning of the year. The 10 percent tariffs did not cover apparel or footwear, touch. The show, which focused on merchandise for big depart- “I would expect to see sourcing shifts away from China to but it did include fabric and handbags along with a threat for Palisades Village, nestled in Los Angeles’ exclusive Pa- ment stores and mass merchandisers, took place Oct. 1–3, pri- other countries or an increase in prices for goods that either more tariffs. cific Palisades neighborhood, where a large tribe of celebri- marily at the California Market Center. can’t be sourced elsewhere or for which the cost of shifting Now a new round of tariffs spearheaded for early next ties live, has been in the making since it was approved two Retailers seen at the show included the Dillard’s depart- is greater than the increase in duties,” said Elise Shibles with year on $257 billion in trade with China will undoubtedly years ago by the Los Angeles City Council and will be de- ment store, juniorswear-focused Rue 21 and Charlotte Russe the San Francisco–based international law firm Sandler, include clothing. And those 10 percent tariffs are expected Even though no public announcement of the sale was buting Sept. 22. as well as value-focused stores including Bealls, Ross Stores Travis & Rosenberg. to shoot up to 25 percent on Jan. 1. It will be the first major retail development that Caruso Inc. and Burlington. For Alen Lahiji, who owns Solid Fabric Textile and Is- With change in the wind, clothing manufacturers such as has introduced in a decade. The company’s last big retail lands Fabric in Los Angeles, the financial threat is imme- Michael Weisberg decided not to wait for new tariffs to kick project was The Americana at Brand in Glendale, Calif., diate, and he is currently trying to change the companies in. This year, he started shifting production of his BeBop which opened in 2008 with a gala event that included an ap- L.A. Majors page 15 with whom he does business. His textile partners currently and Gypsies & Moondust juniorswear labels from China to pearance by then-California Gov. Arnold Schwarzenegger. include suppliers in the United States, India, Taiwan, Hong Vietnam. Last year, 60 percent of that production was done With construction currently wrapping up, Palisades Vil- Kong, Korea, Japan, Pakistan and China. in China. This year it is down to 40 percent, with most of made, documents show that a group named 468 N. Ro- Palisades Village page 8 L.A. Textile Show Reflects Textile Imports page 3 Tariffs page 3 Tariff Threat Pushes Apparel Industry Changes National Stores Is Closing Dame Launches to deo Drive LLC acquired the 22,251-square-foot two-story Importers to Bring In and CMC Transition Remaining Locations Blend Chic Fashion With By Dorothy Crouch Associate Editor Cargo Early By Deborah Belgum and Andrew Asch a Sustainable Lifestyle During this week’s L.A. Textile show, attendees experi- By Deborah Belgum Executive Editor enced the fruits of a new initiative to refresh the biannual After filing for Chapter 11 bankruptcy protection in Au- By Dorothy Crouch Associate Editor event, which took place Oct. 3–5 at the California Market gust, National Stores announced it is holding store-closing building in September for a price that came out to $11,010 There is nothing like the prospect of tariffs on Chinese Center in downtown Los Angeles. sales at its remaining 184 locations. Starting with a friendship that has grown for more than 10 goods to nudge importers to bring in their merchandise a little With property management firm Brookfield Properties The store-closing sales announced Oct. 15 are being held years and apparel-industry experience that has spanned their early to avoid a hefty increase in prices. implementing updates and new construction projects at the at the company’s Factory 2-U and Fallas locations around entire careers, Alexx Monkarsh, Molly Levin and Wells But- Cargo-container imports this summer at the nation’s 1.8 million-square-foot complex, the show is being pro- the country and in Puerto Rico. ler wanted to create a positive impact through clothing. ports are setting all-time highs with retailers and importers duced with a new approach. In a press release, the company said that after “conduct- The trio decided to collaborate on a sustainable, socially concerned that the Trump administration could impose tar- Describing the initiative to make textiles more exciting ing a store rationalization process,” these stores will be shut conscious brand of apparel that stands apart by creating an iffs ranging from 10 percent to 25 percent on $267 billion in through artistic expression, Brookfield Properties’s Emilie down. The store-closing sales are being conducted by Hilco online eco-conscious fashion-lifestyle destination. Named Rodeo Drive page 3 goods at any time. L.A. Textile page 14 Merchant Resources, Gordon Brothers and SB360 Capi- Dame, the brand launched in Los Angeles on Nov. 1 with In early July, the Trump administration imposed 25 percent tal Partners. manufacturing based in downtown L.A. tariffs on $34 billion of Chinese products, and the review pe- The closures come after the company, based in Gardena, “When I was done with my previous line, I connected riod for more tariffs on $16 billion of Chinese products ended Calif., held store-closing sales at 74 of its stores in August. with Molly, who is also my sister-in-law and a stylist,” said July 1. INSIDE: SM It was unclear if the shuttered stores would include the com- Monkarsh, a Los Angeles native whose previous label was “The current boom in shipping can primarily be explained Where fashion gets down to business pany’s Anna’s Linens by Fallas. Calls to attorneys went Alexx Jae and Milk. Her mother is Debbie Levin, president by importers’ response to the U.S. trade war with China,” unanswered. of the Environmental Media Association. “We wanted to said Ben Hackett of Hackett Associates, who prepares the National Stores, owned primarily by Michael Fallas, who start this direct-to-consumer fashion world that provides a monthly Global Port Tracker report for the National Retail took over the company from his father, Joseph, caters to the great uniform for women and also a styling component.” CELESTIAL BODIES Freight & Logistics page 3 SPRING/SUMMER TRENDS National page 2 SPACE FOR LACE Dame page 8 Trend forecasting and buying consultants have been busy Los Angeles designer INSIDE: getting the word out about the latest for Spring/Summer 4 6 INSIDE: INSIDE: Tadashi Shoji looked Where fashion gets down to business SM Stitch Fix to UK ... p. 2 Where fashion gets down to business SM For his Spring ’19 collection, Kevan Where fashion gets down to business SM 2019. Directives West held a runway show highlighting NAFTA update ... p. 2 to the stars for his what will be selling in stores next spring. For more looks, Barbara Fields forecast ... p. 7 Hall was into lace infused with subdued Spring/Summer 2019 MintModa trends ... p. 8 see page 12. Fashion District Resources ... p. 16 Cloth + Trim—Denim Jacket colors. For more looks, see page 7. collection, seen on the Noisy May—Metallic Bra ANTHONY MITCHELL OF STUDIO 19 Cooper—Animal-Print Pant www.apparelnews.net GREEN SCENE runway during New York 2 3 2 7 4 6 Fashion Week. For more Macerich and Simon join forces ... p. 2 Los Angeles designer Michael Costello freshened up his NPD shoppers survey ... p. 2 Differential Brands’ new name ... p. 2 New Informa/UBM Fashion hire ... p. 4 Spring/Summer ’19 collection with vibrant colors and Fashion’s influence on textiles ... p. 3 True Religion’s interim CEO ... p. 2 INSIDE: looks from the show, Style Fashion Week in NY ... p. 7 Cantiq lingerie ... p. 8 Automating marketing ... p. 3 flowing styles. For looks from other Los Angeles designers see page 6. WWIN hire for key buyers ... p. 9 Tencel x Refibra ... p. 9 Calik Denim and Kingpins ... p. 9 during Art Hearts Fashion, see page 6. Made in California Resources ... p. 9 SM Michael Costello FRAZER HARRISON/GETTY IMAGES ARUN NEVADER/GETTY IMAGES www.apparelnews.net www.apparelnews.net ANTHONY EVANS www.apparelnews.net Where fashion gets down to business 01.3,8.cover.indd 1 20189/13/18 5:38 PM01,14-15.cover.indd 1 In10/4/18 5:55 PM 01.2-3.cover.inddReview 1 10/18/18 5:39 PM 01,3,8-9.cover.indd 1 11/1/18 6:40 PM This year has seen a surge in consumer confidence as tax cuts, One busy area this year has been on the trade-show front. lower unemployment and higher wages have boosted people’s There have been trade shows moving to new locations, some 4 9 enthusiasm for shopping. This season, holiday shoppers are ex- shutting down shop and others getting a new look or new own- pected to spend an average $1,007.24 per person, up 4.1 percent ers. The adjustments are part of the ever-changing tweaks need- Guess gets fined ... p. 2 over 2017, which was also a busy year on the shopping scene. ed to keep these events relevant to buyers. La Senza is sold ... p. 2 With more shoppers, retailers have been doing a better job of In the realm of trade, it has been more of a topsy-turvy year meeting their financial goals, meaning that not as many stores with the Trump administration roiling sourcing plans by placing Trade show happenings ... p. 6 were shutting their doors this year over last year. Still, retail- additional 10 percent tariffs on some goods imported from Chi- Review of trade pacts ... p. 8 ers know they have to meet consumers’ desire for omni-channel na. Everyone is waiting to see if a full-blown trade war bubbles shopping. For most big clothing chains, e-commerce sales now over next year. make up between 25 percent and 40 percent of revenues. Our detailed look at the Year in Review starts on page 6. www.apparelnews.net

01,3.cover.indd 1 12/20/18 3:12 PM NEWS Guess? Inc. Fined $45 Million for Violating EU Commerce Regulations BRUSSELS—Following an antitrust in- tions—such as pricing stipulations, market- advertising and implementing geo-blocking, tail prices, in particular in Central and Eastern vestigation opened in June 2017, the Euro- place or platform bans, price-comparison- Guess violated the commission’s rules re- European countries. As a result, we have to- pean Commission has fined Los Angeles– tool restrictions and the exclusion of certain garding trade within the European Economic day sanctioned Guess for this behavior.” based apparel brand Guess? Inc. for alleged online partners from distribution networks— Area. In addition to these violations, Guess Due to Guess’s engagement in these un- practices the commission deemed restrictive to control distribution of their goods. demanded its partners receive authorization lawful practices from Jan. 1, 2014, until Oct. to retailers. Guess reportedly subjected its Findings from the sector inquiry revealed to sell goods online, prevented stores from 31, 2017, the commission found that shop- retailers to geo-blocking—or prohibitive one in 10 retailers whose business was ex- establishing their own retail pricing for the pers in Central and Eastern European coun- practices restricting cross-border sales to amined were forced to adhere to cross- company’s products, and restricted cross- tries were charged higher prices than their customers in other European Union member border sales restrictions within at least one selling between authorized wholesalers and Western European counterparts. In countries states—and prevented online advertising us- product category. At the time, Commissioner retailers. These practices violated Article including Bulgaria, Croatia, the Czech Re- ing the company’s branding, such as name Margrethe Vestager explained in a statement 101 of the European Union’s Treaty on the public, Estonia, Hungary, Latvia, Lithuania, and trademarks. The European Commission that Guess’s suspected practices inhibited Functioning of the European Union, which Poland, Romania, Slovakia and Slovenia, re- fined Guess $45 million. the European Union’s single market. protects competition within the region’s Sin- tailers were forced to charge an average of 5 An investigation into practices by Guess “The commission has information indicat- gle Market. percent to 10 percent more for Guess prod- was opened after the commission completed ing that Guess, in its distribution agreements, “Guess’s distribution agreements tried to ucts than shops in Western Europe. a sector inquiry into e-commerce to exam- may ban cross-border sales to consumers,” prevent EU consumers from shopping in oth- The commission decreased the initial ine markets throughout the European Union, she said in June 2017. “One of the key ben- er member states by blocking retailers from Guess fine by 50 percent as the company which included evidence from 1,900 compa- efits of the EU’s single market is that consum- advertising and selling cross-border,” Vesta- cooperated with the investigation by volun- nies. Through this sector inquiry launched in ers can shop around for a better deal.” ger said in a statement explaining the com- tarily revealing details of its illegal practices May 2015, the commission discovered that By engaging in practices such as placing mission’s findings this week. “This allowed that were unknown to investigators. manufacturers relied on contractual restric- restrictions on authorized retailers’ online the company to maintain artificially high re- —Dorothy Crouch L Brands Sells La Senza to Beverly Hills Private-Equity Firm Regent LP The parent company of Victoria’s Secret, Bendel stores and the brand’s e-commerce had an operating loss of $40 million on $250 In addition to La Senza, Regent’s brands Bath and Body Works and Henri Bendel site following the 2018 holiday season. The million in revenue. Transfer of La Senza include Lillian Vernon, the personalized- has sold its La Senza lingerie-store chain. company has also struggled to remain com- ownership from L Brands to Regent should gift seller acquired from Taylor Corp. in L Brands Inc., founded in 1963 by Leslie petitive with its Victoria’s Secret brand as in- be completed by early January. October 2015. Other ventures include Sas- H. Wexner, announced a transfer of owner- creased competition continues to grow from After making its first acquisition in 2013, soon and a media portfolio of newspapers, ship and operating control of La Senza to lingerie brands using more-relatable market- Regent’s investments have grown to include magazines and television platforms, includ- Beverly Hills, Calif.–based global private- ing tactics to lure consumers. consumer products as well as retail and e- ing Sunset magazine, which it acquired from equity firm Regent LP for an undisclosed Despite the deal, which was announced commerce ventures to its portfolio. Time Inc. in December 2017.—D.C. price. According to the deal, L Brands sold on Dec. 13, L Brands’ agreement with Re- 100 percent of its La Senza assets to Regent gent might not be a complete end to the Co- with Regent agreeing to assume the lingerie lumbus, Ohio–based company’s relationship Dept. of Labor Recovers More Than $1.5 Million brand’s operating liabilities. with La Senza. L Brands may receive money La Senza’s sale comes in the wake of a from the deal if Regent sells La Senza or September announcement by L Brands that finds other ways to monetize the brand. Fi- for Southern California Garment Workers in January 2019 it would close its Henri nancial estimates for 2018 showed La Senza More than $1.5 million in back wages also used a computer program to falsify pay and unpaid overtime were recovered for 668 records, the government said. Southern California garment-industry work- Other companies forced to pay back wages, ers, the federal government announced. overtime and record-keeping violations in- The wages were recuperated by the U.S. cluded Los Angeles vendor Casa Q. The DOL Department of Labor’s Wage and Hour Divi- recouped $54,211 from the company. Valle sion during the 2018 fiscal year after several Fashion paid $49,974 it owed in back wages The concept investigations. and overtime to 32 employees. The vendor DOL investigators found that a group of KIT paid $32,623 it owed to 11 employees, Southern California employers not only paid said Ruben Rosalez, the DOL’s Wage and of factoring below the federal minimum wage of $7.25 Hour Division regional administrator. per hour but also often failed to pay employ- “We still find high rates of noncompli- ees overtime when the workers labored more ance even after years of strong education is simple: than 40 hours per week. The minimum wage and outreach efforts balanced with targeted in California is $10.50 an hour for smaller enforcement in the garment industry,” Ro- companies and $11 an hour for larger com- salez said. “These employees are regularly panies. In Los Angeles County, the minimum denied minimum wage and overtime for the wage is $12 an hour for smaller companies long, hard hours they put in on the job. All and $13.25 an hour for larger companies those in the industry need to recognize that with 26 or more employees. if the price they pay for production done in The DOL recovered $61,765 for 18 em- the U.S. is too low, it can cause egregious You Give Us Your Invoice. ployees of Los Angeles–area vendor DAWA minimum-wage and overtime violations, un- Fashion. The company failed to pay the fed- fairly undercutting their competition.” We Give You the Money. eral minimum wage and overtime. DAWA —Andrew Asch You Pay Your Bills. Report Shows That Dollar Stores Are Factoring Made Simple. Popular for Holiday Shopping

No bells, unnecessary, really. No whistles, not People of all income levels and age brackets starved consumers are attracted to one-stop needed as well. No tricks. Ditto. are shopping dollar stores this holiday season, retailers that help them minimize the surge in according to a recent survey conducted by The their spending.” At Goodman Factors, we simply offer smart, NPD Group, a market-research and consum- Shoppers are also spending a bit more in dedicated good service from an experienced er-trends company in Port Washington, N.Y. dollar stores, with the average spend per buyer team of pros. Along with money at competitive In the last 12 months ending in October, going from $165 to $171. the number of customers frequenting stores Nearly one third of dollar-store spending rates when you need it—today, for instance. including Dollar Tree, Family Dollar, Dollar comes from households with incomes that General and the 99 Cents Only Stores has total more than $100,000 a year. The spend- inched up 3 percent compared with last year. ing distribution among the four lower-income In the survey, some four out of 10 custom- brackets is fairly evenly distributed with the Goodman Factors ers said they planned to shop at a dollar store. second-highest share coming from households — Since 1972 — “Dollar stores’ old bargain-based reputation that have an average annual income of $25,000 is now more about value and variety, expand- to $49,999. ing their reach among consumers,” said Mar- Gen X shoppers between the ages of 45 Please call 877-4-GOODMAN shal Cohen, the chief industry adviser and a and 54 are the primary dollar-store buyer, rep- or visit us at goodmanfactors.com. Simple, right? retail expert at The NPD Group. “Especially resenting 30 percent of spending, The NPD during the holiday-shopping season, time- Group said. —Deborah Belgum

2 CALIFORNIA APPAREL NEWS DECEMBER 21–27, 2018 APPARELNEWS.NET

02.news.indd 2 12/20/18 4:49 PM NEWS

Laundering Continued from page 1 Court documents showed the money was turned into which was part of a black-market peso exchange system of mostly $8,800 deposits to various bank accounts, skirting trade-based money laundering. stuffed in duffel bags. More than 30 bank accounts with ap- the rule that banks must report deposits that total $10,000 To keep this activity secret, the company kept two sets of proximately $19 million were also seized in the raid, which or more. books, court documents claim. Prosecutors said the second covered multiple companies. When the Neman brothers pleaded guilty on Dec. 21, unofficial set of books kept track of the cash received from In some instances, the Fashion District money-laundering 2017, they admitted they instructed other individuals to the drug cartels and concealed this cash from the company’s scheme involved money drops of millions of dollars in cash deposit the cash into a personal Wells Fargo bank account accountants to avoid paying taxes on the income. to various companies, often delivered in plastic-wrapped opened by Hersel Neman’s wife, Mojgan Neman. Federal agents started their investigation in 2013 after bundles. As much as $80,000 in cash was delivered in a dog- In the case, Morad Neman pleaded guilty to four counts: confidential informants alerted federal authorities to the food bag, authorities said. conspiring to structure monetary transactions with a domes- scheme being undertaken by a number of businesses in the In a courtroom packed with the friends and relatives of the tic financial institution, conspiring to defraud the United L.A. fashion industry. defendants, U.S. District Judge John A. Kronstadt on Dec. 18 States by obstructing the lawful functions of the Internal The money-laundering scheme worked this way: Los An- sentenced Morad “Ben” Neman, 58, the chief executive of Pa- Revenue Service, subscribing to and filing a false 2013 tax geles companies would import apparel and textiles into the cific Eurotex who lives in the Westwood area of Los Angeles, return understating income he received from Pacific Eurotex, United States with U.S. dollars left by the drug cartels or to two years in prison, fined him $200,000 and imposed three and aiding and assisting in the filing of another false 2013 manufacture goods in the United States. Those goods were years of supervised release once he leaves prison. tax return. then exported to Mexico and sold at local stores for pesos. His brother, Hersel Neman, 59, Pacific Eurotex’s chief Hersel Neman pleaded guilty to three counts: conspiring Those pesos were deposited in Mexican bank accounts, re- financial officer who lives in Beverly Hills, was sentenced to launder money, conspiring to defraud the United States by portedly for the Sinaloa and Knights Templar drug cartels. to 18 months in prison plus six months’ home confinement, obstructing the lawful functions of the IRS, and subscribing A few years earlier, this plot was popular among toy com- fined $60,000 and given three years of supervised release to and filing a false tax return. panies based in Southern California. In 2010, the owners of once he leaves prison. Along with the Nemans, two other individuals were in- Los Angeles–based Angel Toy Corp. were accused of re- Pacific Eurotex, which was named as a defendant in the dicted in the same case. They were Mehran Khalili, who is ceiving duffel bags stuffed with alleged cocaine-sales pro- case and whose revenues totaled $40 million a year, was a brother-in-law of Hersel Neman, and Alma Villalobos, the ceeds and laundering them into pesos. They pleaded guilty. given three years’ probation with stringent conditions and in-house accountant and bookkeeper for Pacific Eurotex. In 2012, the owners of Woody Toys Inc. in City of Indus- fined $400,000. The company and the Neman brothers will Khalili pleaded guilty to conspiring to structure cash transac- try, Calif., were accused of taking large sums of drug money forfeit $3.18 million to the United States, which includes the tions, and Villalobos pleaded guilty to conspiring to launder that later were credited to accounts of toy dealers in Mexico narcotics proceeds they allegedly received and deposited in money. Both are scheduled to be sentenced next month. and Colombia. structured cash transactions. In court documents, the government said that Pacific Eu- This elaborate kind of transaction became increasingly After the raids on Sept. 10, 2014, the Nemans were accused rotex and its principals started laundering drug money in popular after 2010, when Mexico changed its banking regu- of hiding some $3.2 million in drug money over two years by 2012 and continued to do so up until the 2014 raid. lations stipulating that deposits in U.S. dollars for regular dividing it into 384 separate bank deposits. Some $370,000 of Prosecutors said the defendants in the case would receive customers must be limited to no more than $7,000 in cash that money was delivered in 2013 on four separate occasions cash they knew was illegal from unknown third parties in a month. The regulations were devised to stop drug cartels by an undercover agent posing as a money courier. payment for open invoices of goods Pacific Eurotex sold, from shuffling their drug money into Mexico. ●

Rodeo Drive Continued from page 1 per square foot. According to sources, luxu- ry conglomerate LVMH, which declined to comment on the deal, is reportedly behind the transaction. Jay Luchs, vice chairman of Newmark Knight Frank, handled the listing but de- clined to comment about the transaction. LVMH, or Moët Hennessey Louis Vuit- ton, already has a strong presence on Rodeo Drive. It owns or leases more than eight build- ings on the three-block luxury-retail street. A majority of its fashion brands, including Lou- is Vuitton, Dior, Celine, Givenchy, Fendi and Rimowa, have flagships on the street. The purchase of the building might be the latest LVMH move to increase its holdings on the street, which has been a center for high- cost about $50 to $75 per square foot per month. taigne in Paris.” end shopping for more than 40 years. However, Rodeo is worth every penny, Turf said. It’s one The flagships attract so much attention because of their On March 28, it was announced that LVMH spent $110 of the top-five retail streets in North America. It’s important store windows, and the interiors are a feast for the eyes, Pol- million on a 6,200-square-foot building at 456 N. Rodeo to have a presence on the street. In the long run, owning a lard Bayme said. “The luxury brands cultivate clients be- Drive. A construction barricade bearing the name Celine building is financially wiser than leasing the space, he said. cause they have amazing craftsmanship and because they are currently covers the exterior of the property. While no plans have been officially announced for the storytellers. It’s how you fall in love with their concept. It’s In August 2016, LVMH paid $122 million for the House former Brooks Brothers store, Turf said that the space may why you feel okay dropping so much money on a piece,” of Bijan building at 420 N. Rodeo Drive, a purchase con- not necessarily house a flagship store, which is what has she said. sidered to be one of the most expensive on the street. That dominated Rodeo Drive for more than 35 years. Rodeo Drive has something for almost everyone, she add- purchase price came out to $19,405 per square foot, which “It’s a fantastic street,” Turf said. “But it’s missing a ed. One could spend as little as $36 on a paperback guide to beat out Chanel’s 2015 purchase of a Rodeo Drive store for strong, cooler, younger restaurant and hotel. Younger people Los Angeles from Louis Vuitton or on a small bottle of nail $13,217 per square foot. across the globe are driving the commerce for these brands. polish, but jewelry on the street can cost millions of dollars. While the sale of 468 N. Rodeo Drive did not break any Rodeo Drive should have hospitality elements that match the Since 2017, the city of Beverly Hills has been running a records, Andrew Turf, senior vice president of high-street consumer. That is the one weakness of Rodeo Drive.” campaign to make Rodeo Drive more of a place to hang out. retail services at CBRE, said the former Brooks Brothers Right now, there are two hotels on the street, the Luxe The city’s BOLD program, or Beverly Hills Open Later Days, building sale was substantial in an area where store leases Rodeo Drive Hotel and the Beverly Wilshire, on the corner produces musical performances and street backdrops against of Wilshire Boulevard and Rodeo which to take social-media pictures. Running until Dec. 22, it Drive. calls for retailers to stay open until 8 p.m. instead of closing For 13 years, Nicole Pollard earlier as stores do when it is not the holiday season. Bayme has led private shopping The value of flagships on Rodeo Drive has long been tours of Rodeo Drive’s flagships debated. In an interview earlier this year with the Califor- for her company, LaLaLuxe. She nia Apparel News, Marshal Cohen, chief industry analyst begins her tours, which start at for The NPD Group, said that flagship stores on high-end $1,200 per person, at the Beverly shopping streets are geared to be big billboards for brands. Wilshire. People taking the tours Tyler Higgins, a director of the global consultancy range from Persian Gulf oil prin- AArete based in Chicago, said that flagships don’t pay their cesses to Sweet 16 parties, who rents through volume business. They sell expensive items to receive the tours as gifts. The tours people who can afford to pay vast sums, he said. run at least once a week because in- The anchors on Rodeo Drive have remained the same year terest in Rodeo Drive never seems after year, said Kathy Gohari, president of the Rodeo Drive to wane, Pollard Bayme said. Committee, a merchants group. These anchors are domi- “It’s the hub of luxury shopping nated by European fashion houses such as Prada, Cartier, in Los Angeles,” she said. “The Bally, Burberry and the LVMH brands. flagship stores on Rodeo Drive of- However, the street’s merchants make a point of consis- ten rival flagships on Fifth Avenue tently doing something new. Next year, some of the Rodeo Brooks Brothers building in New York and Avenue Mon- Drive flagships will undergo major remodels, Gohari said. ●

APPARELNEWS.NET DECEMBER 21–27, 2018 CALIFORNIA APPAREL NEWS 3

01,3.cover.indd 3 12/20/18 3:31 PM TRADE SHOW REPORT Hong Kong Fashion Week Celebrating Its 50th Edition

The upcoming Hong Kong Fashion Week for Fall/Winter, to be held Jan. 14–17, will see the vast halls of the Hong Kong Conven- tion and Exhibition Centre filled with 1,400 exhibitors showcasing everything from buttons and accessories to evening gowns and active- wear. Exhibitors are primarily from China and Hong Kong, but there will be a number of manufacturers from India and Indonesia. that include sportswear, thermal clothing, The four-day fair has various theme zones bridal and evening wear, intimate wear, and to cater to every buyer’s needs. The Corpo- swimwear. rate Fashion and Uniform zone is returning Fashion is a major component of the this year after debuting in trade show, with 60 interna- 2018, and it’s an important tional designers taking part section for corporations and in the International Fashion service providers who are Designers’ Showcase. looking for uniforms for their The fair will have several front-line staff. symposiums and panel dis- The World of Fashion Ac- cussions that will include cessories is also making a presentations by trend fore- comeback, bringing togeth- casters Fashion Snoops er fashion items including about the fashion trends for shoes, bags, fashion jewelry, Spring/Summer 2020 and scarves and shawls. a seminar about the cotton- New this year will be a market outlook and the latest fashion parade of shoes or- cotton-textile technologies. ganized by the Hong Kong Last January, the fair, or- Footwear Federation. ganized by the Hong Kong Continuing at the event Trade Development Coun- will be zones that include cil, attracted some 14,000 womenswear and knitwear buyers from 76 countries. and special product zones Hong Kong Fashion Week is a biannual event held in January and July. In past years, the January edition of the show included a World Boutique section, which highlighted about 250 de- signers and brands. That was moved a few years ago to a September show called Centrestage, which focuses more on fashion collections and holds numerous runway shows.—Deborah Belgum

Calendar Jan. 5 The Trend Show Jan. 9 Shriner’s El-Zaribah Auditorium The Trendz Show WWSRA Southern California Phoenix, Ariz. Palm Beach County Convention Preview Through Jan. 8 Center Orange County Fairgrounds Palm Beach, Fla. Jan. 7 Costa Mesa, Calif. Through Jan. 7 Through Jan. 10 Active Collective Jan. 6 Anaheim Convention Center Anaheim, Calif. AccessoriesTheShow Through Jan. 8 FAME There’s more on ApparelNews.net. Moda Swim Collective Project Womens Anaheim Convention Center Javits Center Anaheim, Calif. For calendar details and contact New York Through Jan. 8 information, visit ApparelNews. Through Jan. 8 net/events.

Submissions to the calendar should be faxed to the Calendar Editor at (213) 623-5707. Please include the event’s name, date, time, location, admission price and contact information. The deadline for calendar submissions is the Tuesday prior to Friday publication. Inclusion in the calendar is subject to available space and the judgment of the editorial staff.

POSTMASTER: Send address changes to: CALIFORNIA APPAREL NEWS, Customer Service, PO Box 4419, Orlando, FL 32802. CALIFORNIA APPAREL NEWS®: (ISSN 0008-0896) Published by TLM PUBLISHING INC. APPAREL NEWS GROUP Publishers of: California Apparel News®, Market Week Magazine®, New Resources®, Water wear®, 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®). Prop- erties of TLM PUBLISHING INC., California Market Center, 110 E. Ninth St., Suite A777, Los Angeles, CA 90079, (213) 627-3737. © Copyright 2018 TLM Publishing Inc. All rights reserved. Pub lished 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 additional entry offices. The publishers of the paper do not assume responsibility for statements made by their advertisers 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 subscription 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.

4 CALIFORNIA APPAREL NEWS DECEMBER 21–27, 2018 APPARELNEWS.NET

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iss.indd 1 12/20/18 2:51 PM YEAR IN REVIEW The Year in Trade Shows By Dorothy Crouch Associate Editor Beach, Calif. The trade-show production company, which The 2018 trade-show circuit saw a lot of changes owns 55 events including Surf Expo, Outdoor that ranged from shifts in leadership at event-pro- Retailer and the Imprinted Sportswear Show, is duction companies to acquisitions and new-product searching for a new chief executive following the launches. Many shows were reporting successful Nov. 1 resignation of David Loechner, who had turnout by attendees due to an uptick in the econo- worked with the company—and its previous incar- my, which brought greater consumer confidence and nations—for 35 years. In December 2018, Emerald willingness to spend. Expositions announced the cancellation of its 2019 As consumer-spending habits continued to shift to- Interbike trade show in Reno, Nev. ward a demand for a more seamless shopping experi- In June, business-to-business information-ser- ence and tailored service with unique products, trade- vices provider Informa PLC acquired media-and- show organizers sought a formula that both embraced event giant UBM. The venture created the largest the new way of doing business but also satisfied the business-to-business exhibitions producer in the needs of bricks-and-mortar retailers and designers. world, UBM said on its website. Following the de- The evolution of the trade-show world in 2018 saw parture of UBM Fashion Managing Director Mike the United Kingdom’s Alic, Informa Exhibitions in September promoted Reed Exhibitions an- Mark Temple-Smith from his role as commercial nounce a number of Pierre-Nicolas Hurstel director to managing director of the company’s changes to its offer- fashion exhibitions. ings. Nearly one year after the plexCon brand, which takes place in November at the Long At the August installment of UBM’s WWDMAGIC in departure of Agenda founder Beach Convention Center. Las Vegas, attendees saw a new addition with the inclusion Aaron Levant in January, Reed While the future of Agenda’s Long Beach event remains of a section named ON:LINE. Powered by the business-to- Exhibitions announced on Nov. undetermined, the concept of its Las Vegas trade show will business e-commerce marketplace FashionGo, the area al- 19 that its January 2019 edition continue to focus on business-to-business attendees. Impor- lowed buyers to explore a select number of pieces by differ- of the show—scheduled to take tant changes to the Agenda Las Vegas show included the ent brands on-site but also afforded online access for buying place in Long Beach, Calif., at appointment of Tony Shellman as Agenda Las Vegas event at a later time. the Long Beach Convention director in July. During the August Las Vegas shows, an an- The much-anticipated ReMode event was unveiled by Center—would be postponed nouncement was made that Agenda Las Vegas and the Lib- UBM and show founder Pierre-Nicolas Hurstel Nov. 13–14 as the company shifts the event erty Fashion & Lifestyle Fairs would move to the city’s at the Los Angeles Convention Center, bringing together Mark Temple-Smith to a more consumer-focused of- downtown area in February 2019. fashionable celebrities, apparel professionals and garment- fering. The two shows will leave their previous location on the industry experts. During the show, ideas in apparel devel- A testament to its expansion into the consumer market, Las Vegas Strip at the Sands Expo and Convention Center opment, production, promotion and finance were presented Reed Exhibitions announced its pop-up retail and hip-hop in favor of the World Market Center, a 5 million-square- under four separate themes: ReThink, ReMake, ReMarket event ComplexCon would see an expanded show in Chi- foot events center located in downtown Las Vegas just out- and ReInvest. cago July 20–21, 2019, at the city’s McCormick Place con- side the city’s Arts District. As many brands within the fashion industry seek more vention center. During 2018, Emerald Expositions saw a lot of changes ecologically sound production practices along the supply In 2017, Reed Exhibitions gauged the city’s interest in the in show production and leadership. The trade-show pro- chain to meet consumer demand for responsibly produced event when it hosted a ComplexCon pop-up event at Chi- ducer, headquartered in San Juan Capistrano, Calif., moved apparel, ReMode launched as a single resource to provide cago’s Museum of Contemporary Art. The summer event its Swim Collective and Active Collective to the Anaheim sustainable solutions. A second installment of ReMode is is an expansion of the show producer’s Long Beach Com- Convention Center after an eight-year run in Huntington planned for Oct. 29–30, 2019, in Los Angeles. ● The Retail News of 2018 The retail realm this year wasn’t quite as turbulent which filed for Chapter 11 bankruptcy but then was Plaza in Costa Mesa, Calif. The Angeles Premium Outlets. The as in 2017, when more than 6,000 outposts closed their given a lifeline. Overall, the pace of stores going out shop’s new look was designed by off-price center is scheduled to open doors. Yes, retail bankruptcies were still occurring, of business this year slowed. star architect Peter Marino. in the fall of 2021 in Carson, Calif. such as the Los Angeles–based National Stores chain, Here’s a look at the changes in retail this year. Guess? Inc. partners with Aliba- Liz Muñoz is named chief execu- ba Group, a Chinese-headquartered tive officer of Torrid, which focuses resale market Depop opens its first Los Angeles’ Melrose Avenue, but company focused on e-commerce on fashions for plus-size women. JANUARY bricks-and-mortar store in Los An- that date has been changed to late and technology, to open a concept The National Retail Federation geles’ Silver Lake neighborhood. February 2019. shop in Hong Kong that showcases OCTOBER trade group announces that holiday It’s part of a wave of vintage- and Artificial Intelligence technology. Gap Inc. introduces men’s per- 2017 sales rose 5.5 percent to $691.9 luxury-consignment stores that JUNE formance clothing brand Hill City. billion compared to the same period opened in Los Angeles and across Eddie Bauer, a Washington- AUGUST San Francisco–headquartered the previous year. Its initial forecast the country in 2018. state brand known for its outdoor National Stores files for Chap- online subscription and personal- was for 3.6 percent to 4 percent. looks and a focus on outerwear, an- ter 11 bankruptcy protection. The shopping service Stitch Fix opens APRIL nounces a merger with surfwear and Gardena, Calif.–headquartered operations in the United Kingdom. FEBRUARY Row DTLA near downtown Los streetwear retailer Pacific Sunwear retailer announces it will close its Jeff Kirwan steps down from his Angeles started officially unveil- of California. A new operating remaining 184 locations, which in- NOVEMBER job as chief executive officer of Gap ing a wing of boutiques in 2017. It company, called PSEB, is created to clude the Factory 2-U, Fallas and The Beverly Center wraps up a Inc.’s Gap brand. In June, former receives a vote of confidence when run both companies. Anna’s Linens by Fallas locations $500-million remodel, the most ex- Billabong chief Neil Fiske would retailer Oak NYC moves in from its Alfred Chang is named president around the country. However, in tensive in the retail center’s 36-year take over his job. Los Angeles Mid-City location. of Pacific Sunwear of California, November, Second Avenue Capi- history. The remodel brings in new Dash, the boutique chain reporting to Mike Egeck, the chief tal Partners closes a $22-million skylights as well as a giant billboard- MARCH owned by the Kardashians, an- executive officer of PSEB. asset-based credit facility to start sized LED screen to the center’s Los Angeles–headquartered nounces it will close its doors after In a landmark decision, the U.S. a new retailer called Fallas Stores. Grand Court. The remodel welcomes menswear chain Bachrach an- a 12-year run. Superior Court overturns its 1992 Fallas Stores intends to acquire 85 a slate of new stores including a nounces it is closing all 14 of its Quill decision, which exempted shops from National Stores. Brooks Brothers flagship, a giant stores after filing for Chapter 11 MAY e-commerce sites from collect- Irvine Spectrum unveils a Zara and a Balenciaga store. protection. Bebe Stores Inc. closes a deal ing sales tax if they did not have a $200-million renovation. It also Avant-garde clothier Dover A once influential mall, West- to sell its Los Angeles–area design physical presence in a state where gets a new slate of stores, including Street Market opens an emporium side Pavilion, announces it will studio for $28.5 million after shut- the transaction took place. After the Stance flagship. at 606–608 Imperial St. in Los An- change 500,000 square feet of its tering most of its 146 stores and the 2018 decision, e-commerce geles’ Arts District. The neighbor- building into creative office space selling half the brand to Bluestar companies are required to collect SEPTEMBER hood’s retailers hope the arrival of and a few eateries and shops. Alliance. sales tax, putting them on a more Palisades Village, a shopping the high-profile retailer is proof that The remaining 100,000 square Once prominent mall retailer even keel with stores. destination in Los Angeles’ Pa- the once blighted area is ready for feet will continue to operate as a Wet Seal announces its first proj- cific Palisades neighborhood, is high-end retail. multiplex cinema for Landmark ect after closing all of its physical JULY unveiled. It’s the first major retail Theatres. stores and turning into a digital- San Francisco–headquartered project in a decade by Los Angeles DECEMBER After a 30-year run, Allen only retailer. It’s a collaboration ThirdLove, a lingerie and lounge- developer Caruso. Uniqlo opens a flagship at The Schwartz closes its Santa Monica, with social-media stars Niki and wear label, opens a facility in Chico, Macerich, parent company of Bloc retail center in downtown Los Calif.–headquartered flagship to fo- Gabi DeMartino. Calif., where 140 fit stylists work. Westside Pavilion, and Simon, a Angeles, sharing the shopping-cen- cus on digital commerce. American Apparel announces Louis Vuitton unveils a major mall developer and owner, announc- ter area with a Macy’s store and a London-headquartered digital it will reopen its flagship store on remodel of its store in South Coast es a partnership to build the Los Nordstrom Local. —Andrew Asch

6 CALIFORNIA APPAREL NEWS DECEMBER 21–27, 2018 APPARELNEWS.NET

06.Tradeshow-retal.indd 6 12/20/18 4:54 PM progressive-can.indd 1 3/8/18 7:03 PM YEAR IN REVIEW Trade: The Year Where Nobody Knew What Was Actually Going On If you had to explain why the stock mar- the region. Visible linings are exempt from ket is going up and down like a yo-yo, one this requirement. of the reasons is the uncertainty in trade. The other change is that trade-preference It has been one of the most ambiguous levels on some fabric are restricted, meaning trade years in recent memory with major that less fabric from outside the region will clothing corporations taking a hard look at be available for garments made in Mexico or their sourcing strategies and shifting pro- Canada to qualify them for duty-free entry duction out of China to other low-cost coun- into the United States. tries. Vietnam appears to be the chief benefi- The trade agreement now has a new Product List ciary of this sourcing swing because it has a name. It is called the United States-Mexico- good network of apparel factories. Canada Agreement, or USMCA. The new Vietnam’s apparel exports to the Unit- NAFTA still has to be approved by the U.S.

Port of Long Beach

ed States rose 7.35 percent to $10.56 billion during the first 10 months of this year compared with the same time period last year. In contrast, China’s apparel exports to the United States inched up 1.6 percent during that same 10-month time frame to $23.5 billion. The trade worries with Chi- na started in September when President Trump announced he Get Inspired! would levy a 10 percent tariff on $200 billion worth of Chi- nese products being imported Hundreds of Stocked into the United States. While Novelty Knits, this didn’t cover apparel, it did Wovens, Linings encompass textiles and hand- and More! bags. The tariffs, which went into effect Sept. 24, were on top of tariffs imposed earlier in One Roll Minimum. the year on $50 billion worth of Chinese goods. www.cinergytextiles.com That rattled the markets, Tel: 213-748-4400 as did President Trump’s as- sertion that he would include [email protected] Port of Long Beach $267 billion more in Chinese goods and raise tariffs to 25 percent at the Congress and the appropriate legislative beginning of the year. bodies in Canada and Mexico. Apparel News Group WEB PRODUCTION FINANCE Right now, China and the United States This should come as a relief to the sev- MORGAN WESSLER DAVID MARTINEZ have declared a moratorium on their trade eral Los Angeles blue-jeans labels includ- CREATIVE MARKETING DIRECTOR CREDIT MANAGER LOUISE DAMBERG RITA O’CONNOR war while they sit at the negotiating table ing Hudson, True Religion and 7 For All DIRECTOR OF SALES AND MARKETING and figure out some middle ground. If no Mankind, which manufacture in Mexico. 731945-2018 TERRY MARTINEZ PUBLISHED BY agreement is reached by March 1, the new If the jeans enter duty free, companies skip Seventy-three years of news, SENIOR ACCOUNT EXECUTIVE TLM PUBLISHING INC. fashion and information AMY VALENCIA APPAREL NEWS GROUP tariffs would almost certainly include ap- paying 16.6 percent duty on cotton jeans ACCOUNT EXECUTIVE Publishers of: CEO/PUBLISHER parel from an industry that manufactures 34 and 28.6 percent on man-made-fiber jeans. LYNNE KASCH California Apparel News TERRY MARTINEZ Waterwear percent of its apparel in China. The average garment worker in Los An- BUSINESS DEVELOPMENT Decorated MOLLY RHODES While everyone is worried about China, geles makes about $480 a week versus $148 EXECUTIVE EDITOR SALES ASSISTANT/RECEPTIONIST EXECUTIVE OFFICE there is a more buoyant feeling about mak- a week for a Mexican apparel worker. DEBORAH BELGUM ASHLEY KOHUT California Market Center RETAIL EDITOR ADMINISTRATIVE ASSISTANTS 110 E. Ninth St., Suite A777 ing clothes in Mexico. The Trump admin- In another part of the world, the U.S. ANDREW ASCH CHRIS MARTIN Los Angeles, CA 90079-1777 istration had threatened to pull out of the trade agreement with South Korea was on RACHEL MARTINEZ (213) 627-3737 ASSOCIATE EDITOR Fax (213) 623-5707 North American Free Trade Agreement the chopping block this year too. At one SALES ASSISTANT DOROTHY CROUCH Classified Advertising Fax PENNY ROTHKE-SIMENSKY among Canada, the United States and Mexi- point, President Trump threatened to with- CONTRIBUTORS (213) 623-1515 ALYSON BENDER CLASSIFIED ACCOUNT EXECUTIVE www.apparelnews.net co, which had been in effect since 1994. draw from the treaty known as KORUS, or VOLKER CORELL JEFFERY YOUNGER [email protected] JOHN ECKMIER PROFESSIONAL SERVICES After months of trade negotiations, on the Korean American Free Trade Agree- JOHN McCURRY & RESOURCE SECTION Sept. 30 it was announced that the three ment. ESTEVAN RAMOS JUNE ESPINO PRINTED IN THE U.S.A. TIM REGAS countries had come to an agreement to re- Textile and apparel imports into the Unit- N. JAYNE SEWARD PRODUCTION MANAGER HOPE WINSBOROUGH KENDALL IN place NAFTA. Slight tweaks to the new ac- ed States were not affected. On Sept. 24, NATALIE ZFAT EDITORIAL DESIGNER cord meant that sewing thread, pocket lin- Trump and South Korea’s President Moon JOHN FREEMAN FISH ings, elastic bands and coated fabrics made Jae-in signed the new agreement. in the three countries must now come from —Deborah Belgum

8 CALIFORNIA APPAREL NEWS DECEMBER 21–27, 2018 APPARELNEWS.NET

08.trade.indd 8 12/20/18 4:58 PM EVENTS

A Festive Spirit Takes Off at the 71st Annual Holiday Party by the California Fashion Foundation The activity meter on the top floor of the Cooper Design masks, hats, golden crowns, and signs that said “Friends For- stitute of Design & Merchandising; Steve Hirsh and Mona Space went into overdrive as 200 children danced to holiday ever” and “I Don’t Know Him.” Sangkala from the Cooper Design Space; and Molly Rhodes music, fought with sword balloons, tossed fake snow every- A number of fashion-industry elves including Ann Davis, of the California Apparel News. where and received bulging bags filled with a boatload of gifts. Roberta Sassower, Eileen Ellis, Janet Moss and Bill Panzera The party and gifts were made possible through a long list This was the 71st annual holiday party hosted by the Cali- worked the food line, where macaroni and cheese, hot dogs, of fashion-industry and financial-industry sponsors, includ- fornia Fashion Foundation—the philanthropic arm of the popcorn, potato chips and miniature cupcakes were waiting ing Karen Kane Inc., the Cooper Design Space, AIMS360, California Fashion Association. to be gobbled up. KWDZ Manufacturing, Moss Adams, Moonbasa, STC- Children at the Dec. 5 party arrived by bus from Alex- The big crescendo was Santa Claus handing out gifts to all QST, Alba Wheels Up, the Ben & Joyce Eisenberg Foun- andria House, the Boys & Girls Club of Los Angeles, the the children. Huge red bags were filled with dolls from Mat- dation, Design Knit, Kaufman & Kabani, Stony Apparel Boys & Girls Club of East Los Angeles and Para Los Ni- tel, soccer balls, jigsaw puzzles, mechanical drawing pads, Corp., the Findings showroom, White Oak, the Market ños, where they participate in various after-school programs. card games and other items. restaurant, Classy Bride, Ragfinders, Apparel Resources A photo booth was set up where children could take self- On hand were Ilse Metchek, president of the California Inc., the Fashion Institute of Design & Merchandising and portraits using props including oversized eyeglasses, funny Fashion Association; Barbara Bundy from the Fashion In- the California Apparel News.—Deborah Belgum

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December 28 January 4 January 11 January 18 Cover: Retail Cover: Retail Cover: Fashion Cover: LA Market Wrap New Laws Swim/Active Profiles Trade Show Coverage 2018 Financial Review/2019 Financial Surf Retail Forecast Fashion Advertorial New Lines Surf Expo Coverage Fashion Advertorial T–Shirts Fashion Advertorial Technology Industry Voices Bonus Distribution Waterwear Special Section Finance Advertorial Sustainability The Trends Show 1/6–8 Waterwear Advertorial Active Collective 1/7–8 Textile Preview and Resource Guide Las Vegas Resource Guide Swim Collective 1/7–8 Bonus Distribution Surf Expo 1/10–12 T–Shirt Advertorial Active Collective 1/7–8 Premiere Vision NY 1/15–16 Swim Collective 1/7–8 Bonus Distribution Technology Advertorial DG Expo NY 1/15–16 Surf Expo 1/10–12 Brand Assembly 1/14–16 Sustainability Advertorial Designers & Agents LA 1/14–16 Designers & Agents LA 1/14–16 LA Fashion Market 1/14–16 LA Fashion Market 1/14–16 Bonus Distribution Label Array 1/14–16 Label Array 1/14–16 Brand Assembly 1/14–16 Premiere Vision NY 1/15–16 Imprinted Sportswear Long Beach 1/18–20 Premiere Vision NY 1/15–16 Imprinted Sportswear Long Beach 1/18–20 Fashion Market Northern California 1/27–29 Apparel Sourcing USA 1/21–23 Apparel Sourcing USA 1/21–23 Outdoor Retailer 1/30–2/1 DG Expo NY 1/15–16 Liberty Fairs NY 1/21–23 IFJAG 2/2–5 Call now for special rates OffPrice Show 2/3–6 Texworld USA 1/21–23 Texworld USA 1/21–23 Sourcing at MAGIC 2/4–7 Terry Martinez Liberty Fairs NY 1/21–23 Dallas Market Week 1/23–26 WWIN 2/4–7 Active Collective NY 1/24–25 Agenda LV 2/5–7 (213) 627-3737 x213 Fashion Market Northern California 1/27–29

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