NEWSPAPER 2ND CLASS $2.99 VOLUME 73, NUMBER 6 FEBRUARY 3–9, 2017 THE VOICE OF THE INDUSTRY FOR 72 YEARS Dov Charney: From American Apparel to Los Angeles Apparel By Deborah Belgum Senior Editor If the business plan sounds the same, it is. Dov Charney is more determined than ever to make his second stab at ap- parel manufacturing more successful than the first. Charney, who was fired at the end of 2014 from his American Apparel clothing company, is still stinging by the ouster and the loss of the company he founded. But he is determined to move forward and prove that you can manufacture clothing in Los Angeles, pay a fair wage and make money. “We are going to take over and be an important force in the apparel industry,” he said, speaking Feb. 2 at a creative services and artist-oriented event organized by Le Book at the Pacific Design Center in West Hollywood, Calif. On an outdoor patio with a clear view of the three col- orful buildings that make up the Pacific Design Center, a crowd of more than 100 people showed up to hear Char- ➥ Dov Charney page 6 TRADE SHOW REPORT Surf Industry—and More—Turn Out for Surf Expo By Alison A. Nieder Executive Editor Exhibitors were “stoked” and buyers were busy at the Jan. 26–28 run of Surf Expo at the Orange County Con- vention Center in Orlando, Fla. The surf-industry trade show drew a mix of core surf and swim stores from across the country, including Cali- fornia retailers Jack’s Surfboards, Surf Diva, Sun Diego and Hansen’s; East Coast retailers Ron Jon, Curl, Cin- namon Rainbows, Warm Winds and Brave New World; and Hawaiian retailers Hi Tech and Déjà Vu. An international crowd turned out, according to exhibi- tors, who said they saw buyers from across the Caribbean and Autumn in N.Y. South America as well as a handful from Europe and Japan. The show also drew resort and ready-to-wear buyers Designer Billy Reid drew from Caesars Entertainment, Harding Brothers Retail inspiration from the Beat Ltd., the Marshall Retail Group, The Paradies Shops, Generation for his Autumn/ ➥ Surf Expo page 12 Winter 2017 collection, shown on the runway in New York. INSIDE: For more from the New York Where fashion gets down to business SM runways, see page 6. FIRST VIEW/GETTY IMAGES Texollini’s Latest $2 Million Investment Includes New Knitting, 2 11 Dyeing and Finishing Machines New CFO at Differential Brands ... p. 2 New Resources ... p. 2, 11 By Alison A. Nieder Executive Editor er to meet stringent regulations or to save water, an invest- ment in new technology will yield an environmental benefit, Texworld USA ... p. 7 There are five reasons for a textile mill to invest in new Bracha said. Fashion Market Northern California ... p. 8 technology, according to Amit Bracha, president and chief “Once you save water, you’ve also saving energy and operating officer with the Long Beach, Calif.–based vertical you’re saving chemicals,” he said. Las Vegas Resource Guide ... p. 13 textile mill Texollini. Sometimes a company invests in new machinery simply “The first reason is the environment,” Bracha said. Wheth- ➥ Texollini page 10 www.apparelnews.net 01.6,10,12.cover.indd 1 2/2/17 6:16 PM NEWS New CFO Named to Hudson Jeans Parent Company Differential Brands Group has named apparel industries. Most recently, he was the excellent track record growing lifestyle Brands Group and Global Brands Group Bob Ross its new chief financial officer, ef- chief financial officer of Los Angeles–based brands and retail concepts through multiple Holding for $80 million. Funds from the fective Jan. 30. Nasty Gal Inc., an online apparel site that channels,” said Michael Buckley, Differen- sale were used to retire Joe’s Jeans’ debt. He replaces Hamish Sandhu, who in 2007 filed for bankruptcy protection last Novem- tial Brands’ chief executive officer. The Hudson label remained behind and started with Joe’s Jeans, which did a reverse ber. Prior to that, he was chief financial of- Before becoming Differential Brands the company was merged with the high-end merger in 2015 and became Differential ficer of Ideeli Inc., a members-only online Group, the apparel venture operated as Joe’s label Robert Graham and then combined un- Brands Group. The Los Angeles company’s shopping site. Jeans, which hit a financial hurdle in 2013 der the Differential Brands Group corporate labels are premium-jeans brand Hudson, For more than 12 years, Ross held several when it borrowed $90 million to buy Hudson name, which is publicly traded on the NAS- Robert Graham and SWIMS, a Scandina- financial and operational executive roles at for $97.6 million and then defaulted on its DAQ. vian lifestyle brand known for its range of retail chain Urban Outfitters. He holds a loans. For the first nine months of 2016, Differ- water-resistant footwear, apparel and acces- bachelor’s degree in accounting from Drexel The company was close to declaring ential Brands had a net loss of $12.9 million sories. University in Philadelphia. bankruptcy in 2015 but ended up selling its on $107.25 million in revenues. Ross has a long history with the retail and “Bob has vast global experience and an flagship brand, Joe’s Jeans, to Sequential —Deborah Belgum Online Sales Are Driving Retail Investment, Survey Says Online sales were expected to capture more than ever, and retailers have found that customer experience.” Many said they were point. It’s about having all aspects of the 11.6 percent —or $394 billion—of all U.S. even modest investments in mobile initia- looking to invest in new customer service business—stores, mobile, merchandising, retail sales in 2016, according to a projection tives can result in huge returns,” said Arte- features such as live chat. customer service, fulfillment and more— by Forrester research firm, but instead “dig- mis Berry, NRF vice president for digital re- “Today’s customers are empowered work together to deliver total value to your ital touchpoints” commanded an estimated tail, in a statement. “This is no longer a new with information and technology,” For- customers wherever they are, at any time.” 49 percent of U.S. sales. way to reach customers, but it has certainly rester Vice President and Research Director The report surveyed 74 companies in Oc- That finding is at the heart of a report, become a highly effective method and one Fiona Swerdlow said. “To grow, retailers tober 2016. Companies included apparel and titled “The State of Retailing Online 2017: that boosts the level of customer engagement know they have to operate with a customer- accessories, footwear, general merchandise, Key Metrics, Business Objectives and Mo- across the brand.” obsessed mindset to deliver the experiences home furnishings, personal care, and sport- bile,” released by the National Retail Fed- The retailers surveyed said m-commerce that consumers now expect at every touch- ing goods retailers.—Alison A. Nieder eration’s Shop.org division and Forrester. sales—or sales using a mobile device—in- The report found that retailers are focusing creased 65 percent over last year. Nearly their efforts and investment on ways to “en- half (47 percent) of online traffic came from NEW RESOURCES hance customer experiences” online. More smartphones and 30 percent of online sales than half of the retailers surveyed—54 per- were made using a smartphone. cent—listed mobile commerce among the Rather than investing in emerging tech- top three initiatives in 2017. Other key ini- nologies such as virtual and augmented Vera Bradley Dives Into Swim With Mainstream tiatives for the year include marketing, site reality, retailers said they were looking Vera Bradley—the lifestyle brand known brand development. “The results are fresh, merchandising and omni-channel efforts, the to enhance customer experience. And for for its allover-print handbags, totes and lug- modern styles balanced with feminine de- report found. many—45 percent surveyed—m-commerce gage—will launch a swimwear collection tails. These refined styles are designed to be “Smartphones are driving retail sales spending “transformed their overall digital with Mainstream Swimwear Inc. every woman’s favorite look for the upcom- “We are thrilled to bring this inspiring ing season.” collection to market, fusing together Main- The launch collection includes about 50 stream Swimwear Inc.’s expertise in all styles, including bikini and tankini separates, things swim with Vera Bradley’s heritage one-pieces and cover-ups in sizes ranging of timeless patterns and prints,” said Robert from XS to XL. Retail prices range from Wallstrom, chief execu- $110 to 135. The collec- tive officer of the Roa- tion will be sold in Vera noke, Ind.–based com- Bradley stores, including pany. “We are confident the company’s new SoHo that this collection will flagship location in New showcase a fresh, inno- York, on the company’s vative and modern per- e-commerce site (www. spective on the beloved verabradley.com), in de- Vera Bradley brand.” partment stores, resorts The Spring collection and swimwear boutiques. is inspired by Havana Vera Bradley was and will blend Vera Brad- founded in 1982 by Bar- ley’s signature look with bara Bradley Baekgaard new colors and details. and Patricia R. Miller. In There are reversible suits and styles with re- addition to the company’s core collection, movable details. Vera Bradley offers college collections fea- “We couldn’t be more excited to collabo- turing Vera Bradley prints in the school col- rate with Vera Bradley to produce a swim- ors of universities around the United States.