California Apparel News

An inventory of people and companies that were leaders in California’s Apparel & Textile Industries in 2000.

Kathleen BronsteinVice Chairman /Chief Executive OfficerWet Seal Inc.Foothill Ranch, Calif.

Remains the biggest junior retailer based in region but still facing uncharacteristic soft streak owing in part to off-the-mark fashion merchandising over past year. Results perked up in recently concluded third-quarter sales, offering hope that an upward turn is in the works as holiday season starts. Third-quarter sales, ended Oct. 28, totaled $144.9 million with earnings just below $4 million, both better than year-prior figures, with same-store sales up 6.8 percent. Year-to-date sales were up 5.9 percent, but earnings remained well off year-earlier totals at $6.6 million. Strong holiday season could have sales for entire fiscal year approaching $600 million mark and pull same-store sales into positive territory.

Wet Seal now operates approximately 568 stores spread over the Contempo Casuals, Limbo Lounge and Arden B. nameplates. Aggressive pace of new-store openings has rolled back, with a net gain of only 23 locations over the past year or so—a total that factors in 14 closures. Recent tough stretch leaves Bronstein holding reins, but now she has several new high-level execs on staff sans longtime right hand Ed Thomas, who parted ways with the company in recent months. (Thomas’ separation package trimmed 8 cents a share off earnings in the third quarter, according to the company). Most prominent among newcomers: Steven Cox as senior vice president and general merchandise manager; Greg Scott as president of the Arden B. nameplate; and Steven Strickland, vice president of creative marketing, store design and visual marketing. Bronstein and that trio must divine strong fashion trend to get fully back on track. If third-quarter improvements take hold and grow, it could be another advantage to Bronstein, who has proved doubters wrong before—during her rise to the top of the company as well as during the years she spent guiding it on steady growth curve. Her bargain-basement acquisition of Contempo Casuals in mid-1990s was first questioned but soon applauded by observers, analysts and competitors. More recently some speculated she was spending too much time on Arden B. junior/contemporary concept—which is named for her daughter. That effort could receive delayed recognition if demographic trends carry Gen Y shoppers to higher end on price points, style sense in coming years. Meanwhile, the Wet Seal and Contempo Casuals nameplates will likely be the key for a turnaround in 2001.California MartThe Fashion District Los Angeles, Calif.

Cal Mart saw new ownership take over when Judah Hertz purchased the massive property for an estimated $89 million earlier this year. Occupancy hovered near 60 percent when Hertz took over and appeared to drop slightly in months following. More recently matters have seemed to stabilize just in time for more aggressive marketing profile. Plans include a new Web site and festivities related to market weeks under newly appointed executive marketing director Karen Mamont, a Cal Mart veteran from the previous management (one of the few to remain onboard under Hertz’s ownership).

Hertz is also considering a remake of the 13th floor from individual temporary showrooms to open area. Recently hired longtime Fashion District real estate exec Veronica Becerra as VP of leasing for his Hertz Investment Group, the umbrella organization that includes Cal Mart, Wiltern Theatre, Oviatt Building and others in his fold. Has made no secret of his belief that Cal Mart was not an effiecient operation uder former ownership. Still faces vocal bunch of tenants who want to be kept abreast of ongoing operations and future plans. Bill DombrowskiPresident/Chief Executive OfficerCalifornia Retailers Association (CRA)Sacramento, Calif.

Political insider who works the California state legislature for trade group that includes many of the largest retailers with operations in the state, including Gap Inc., Macy’s West, Neiman Marcus, Nordstrom, Saks Fifth Avenue, Sears, Target and Wal-Mart. Also sits as appointee of Gov. Gray Davis on Industrial Welfare Commission; that’s the little-known body of five members that’s vested with much authority on workplace matters. (Dombrowski is one of two members representing employers; the commission has two other members representing workers and one member with no affiliation to either side.) The commission recently voted a 50-cent-per-hour raise on the state minimum wage on Jan. 1, to $6.15 an hour. That will be followed a year later with another 50-cent-per-hour bump. State legislature could overrule the commission, but seldom does and certainly won’t this time. Arrived in top spot for CRA in 1994 and has since fought steadily for credit regulation, deregulation of the electric utility industry and privacy protection for retailers, among other issues. His work on utility deregulation may be viewed in new light after severe price spikes this summer in areas where new rules had taken effect.Mickey Drexler Chief Executive Officer The Gap Inc.San Francisco, Calif.

The Gap is still the big daddy of California retailers and manufacturers, but the new millennium hasn’t been kind so far.

Last year the main Gap nameplate showed signs of weakness, losing some sales to downmarket sister Old Navy and watching Banana Republic unit revive its fortunes at higher price points. The three combined for $11.6 billion in sales, helping offset the Gap’s difficulty. This year has seen all three units struggle in the aftermath of nearly two years of red-hot growth across the board. Indeed, the third quarter saw earnings dip by 41 percent against a year earlier and same-store sales fall by 8 percent.

Some analysts, meanwhile, predict a 16 percent drop for the entire year. An absence of TV advertising, no doubt, pinched third-quarter sales but the Gap and Old Navy brands are back on the tube with a vengeance for the fourth quarter. Still, a passel of key executives have parted ways in recent months, including design directors for Old Navy and Banana Republic, as well as high-level marketing and finance execs for the Old Navy and Gap brands. Immediate plans for makeover of Old Navy are underway, to give it a family feel, with more classic basics and still-lower prices. That may help separate it from the Gap stores. And Drexler says searches are underway to replace departed execs. Drexler—who exerts much control over merchandising and design—has been through tough times before; hard to believe that in the early 1990s the Gap was considered passeacute; by many young hipsters. That image was reversed completely by aggressive marketing that keyed in on a main trend or style and kept a steady drumbeat in consumers’ consciousness. That means the Gap must find the right look and regain its confidence in order to get back to the big gains of the late 1990s.Karen EwaysSenior Marketing SpecialistDesigner Segment ManagerGlobal Coordinator for Leather+LycraDuPont LycraLos Angeles, Calif.

Gives California update to DuPont Lycra’s image in Los Angeles with fashionable wardrobe and approachable personal manner. That may be viewed as a slight departure from DuPont’s corporate image, but Eways’ keen sense of marketing is right in line with HQ. Aggressively promotes Lycra as premium spandex and more recently has given specific focus to Leather+Lycra, a stretch-leather product. Also has direct input on advertising buys for both trade and consumer print media; that sometimes leads to designers getting tremendous exposure by being featured in ads for popular glossies in U.S. and abroad as leading examples in Lycra use. Upcoming Italian Vogue put spotlight on Leonardi and Suss Designs, both Los Angeles-based labels. Was the DuPont exec in charge of the DuPont Lycra Gallery at MAGIC for the past three years, which gave smaller labels—heavy Lycra users, ofcourse—valuable exposure at trade show twice annually. The last run of MAGIC saw a near-California Suite, as Pavilion included seven designers from Golden State. (It would have been all eight, but a late change left one label unable to attend.) MAGIC has cancelled the Design Gallery, but look for DuPont Lycra and Eways to find another high-visibility outlet for promoting the stretch fiber—and California labels—in the future.

Gen Art Los Angeles Fresh Faces in Fashion

Annual fashion show follows up on the promise of its name by consistently finding fresh faces in fashion. Los Angeles fashions spotlighted during the event include on-the-rise contemporary labels such as Josephine Loka and Cornell Collins as well as avant-garde lines such as Ina Celaya and Jared Gold.

Gen Art Los Angeles, which hosted its third annual fashion show this fall, is a spin-off from New York-based non-profit organization founded in 1993. The group opened its Los Angeles office in 1995 and staged its first fashion show in 1998, pulling in high-profile corporate sponsors such as Nokia, Ford and Absolut vodka. (Nokia has already signed on to sponsor next year’s show.) The Los Angeles Fresh Faces show draws a crowd of fashion followers who line up to see a high-energy runway show featuring a new group of talented designers all against the backdrop of hipster locations such as Shrine Exposition Hall and the Park Plaza Hotel.

Approximately 1,200 people from the art, entertainment, fashion, music, internet and hi-tech industries turned out for the latest show, which was the second Gen Art show organized by producer Megan Griffith, a veteran show organizer whose resume includes a stint with the Cal Mart’s Look Show. Griffith plans to expand Gen Art’s calendar of events in Los Angeles, adding several smaller fashion events as early as April 2001.Stanley HirshFounder Mercantile Center Los Angeles, Calif.

Major property owner in Fashion District with Cooper Building, Bendix Building and several others. Co-founder of Downtown Property Owners Association Fashion District Business Improvement District (BID), the organization that has had much to do with making the neighborhood cleaner, safer and better promoted. Served as BID’s first chairman, remaining on the job until a second term was approved for the BID. Leaves day-to-day operations of buildings to son Steven, who has had significant success in repositioning the Cooper Building as design center. Adam, his youngest son, runs a men’s shop on the second floor. Top Democrat in California apparel trade, thanks to passionate involvement and generous contributions. Started on path to influence as successful dressmaker who migrated to real estate. Still has hand in manufacturing, with Howard Hirsh Inc., which makes swimwear for J. Crew catalog. Publisher of Jewish Journal, the sharp, widely read weekly. Ushered in new editor a few months ago; Journal remains on target with audience. Stepped down as chairman of Fashion Industries Division of Jewish Federation, but remains key member of that effort as well as the federation overall. Serves on Jewish Family Services board with wife Anita, who shares his intellectual curiosity and percipient nature. She also dedicates time to the JFS Chavarim program, which provides support to people born with disabilities.

Lonnie KaneCo-Founder/OwnerKaren Kane Inc.Vernon, Calif.

Former hired-hand production manager who teamed with designer wife Karen to build label into mid-market powerhouse, with over $80 million in annual sales spread over key department store chains as well as a few boutiques. Has served as chairman of California Fashion Association for past five years, giving the group a consistent sense of support and engaging public personality at its highest level to complement executive director Ilse Metchek’s tireless efforts (see Metchek entry). Member of Board of Governors of U.S. Federal Reserve Bank branch in San Francisco. Success in business and added duties haven’t turned his head: Kane still keeps sales crews on the road to reach out-of-the-way markets; also remains careful in seizing growth opportunities by giving new lines or products initial support without building an infrastructure until results merit such investment. Among top industry leaders when it comes to deploying new technology. Kane is an advocate of employee development; he once invited bank representatives to discuss with his employees how to establish checking and savings accounts.Manny MashoufFounder/Chief Executive OfficerBebe Stores Inc.Brisbane, Calif.

Iranian-born entrepreneur has overseen more growth for Bebe, which manufactures exclusively for its own retail stores, a roster now numbering 135. The retailer is steadily approaching the $200 million mark in annual sales for the current fiscal year, which runs July to July. Much of current growth comes from new stores, with same-store sales lagging 9.9 percent through October. Recent moves in Los Angeles include hiring local designer Monah Li to oversee a new design center planned for the Cooper Building in Los Angeles’ Fashion District. Also, shifted presence in Santa Monica from Santa Monica Place mall to Third Street Promenade—a matter of a few blocksthat will keep the retailers’ storefront facing the town’s thoroughfare. Brought in several key execs this year, with Andrew Wadhams joining as vice president of stores and John Parros more recently taking on the president’s job. Parros arrived from Proffitt’s Inc., where he was responsible for merchandising strategies at the chain operator’s six divisions. That should be a help to Mashouf, who has grown Bebe over the past 24 years from boutique operation in San Francisco to junior/contemporary chain with locations in 22 states and the United Kingdom. Much of its growth stems from “test and reorder” strategy that requires close monitoring of a wide selection of merchandise and then a quick turn to get hot sellers to market before popularity fades. That has long meant key relationships with a broad base of contractors and private label manufacturers in Los Angeles area. Mashouf says company’s name is multifaceted—Bebe is French word for baby, turnabout of Shakespeare’s “to be or not to be” line, and also the Farsi name for the Queen in a deck of cards. Ilse MetchekExecutive DirectorCalifornia Fashion AssociationExecutive DirectorLA By DesignLos Angeles, Calif.

Managed what seemed to be the impossible by increasing her profile within the industry. Also took big step toward increasing industry’s profile in the general market by shepherding CFA into new role as unit of Los Angeles County Economic Development Corp. (LAEDC). The move gave her additional duties as executive director of LA By Design, an LAEDC unit that aims to inventory the creative strengths of the region and tout them locally and nationally. Targeted industries for the effort include: apparel, textiles, automotive, aerospace and entertainment, among others. LAEDC’s well-stocked budget, impressive organization and lineup of affiliated heavy hitters mean new possibilities for promotion in future. CFA retains its identity and focus on apparel and related matters. LA By Design ensures consideration of trade in broader discussions on region’s strengths and challenges. Now needs more room on her solid-gold rolodex, which is among the best when it comes to networking connections for apparel trade and the general market. Former designer for the late Jack Needleman’s Anjac line. Later had her own label, and also counts stint as high-ranking Cal Mart exec on resume. Look for Metchek to continue—with new amplification—her consistent message about local trade’s value and strengths to media at home, across nation and abroad.Steven NeedlemanOwnerAnjac Fashion BuildingsLos Angeles, Calif.

Youngest son of late and legendary dressmaker/property owner Jack Needleman, now has more than a year under his belt running an operation that includes 18 or more buildings in or around Fashion District in Los Angeles, for a total of about 3 million square feet of space. Spent past year quietly planning for move that has potential to make his Orpheum Theatre on Broadway a connection point for fashion and entertainment worlds. The gallant old Orpheum is getting $1 million or so worth of improvements and will be offered for rent on event-by-event basis. The 2,000-seat venue will be marketed with his 7,000-seat Grand Olympic Auditorium nearby—a structure that is popular for everything from Hollywood location shoots to old-fashioned revival meetings.

Also renovating the Wurlitzer Building next door to the Orpheum, redoing the interiors and polishing up the classic exterior in hopes of luring new tenants. Focus on apparel and other sectors, service providers such as architects and lawyers, could be a boost for Broadway corridor and Fashion District. Community fashion theater will be available for tenants to use for presentations or parties. Keeps office on Santee Street, an indication that all the upscale moves haven’t led Anjac to forget its bread-and-butter apparel and related tenants.

New MartThe Fashion District Los Angeles, Calif.

Reached 100 percent occupancy mark last year and remains chock-full of hip, contemporary showrooms. Twice-a-year Designer & Agents show—along with smaller D&A Annex versions—continues to grow and seems to be well targeted, bringing New York and European lines a venue to show to local high-end boutiques. New Mart management now turning attention to upgrades for elevators and bathrooms and other “white glove” treatments. That fits owner Joyce Eisenberg’s taste and style—she can be found in her offices on the eighth floor most days and still specializes in personal contact with tenants. QuiksilverHuntington Beach, Calif.

Publicly held company saw net sales hit $443.7 million in 1999. Net sales for the first nine months of 2000 were reported at $364 million, putting Quiksilver on track to one day rival the wholesale volume of California’s other high-volume public apparel company, Guess Inc. Mega-brand has been a mainstay on the surf scene since surfer and businessman Bob McKnight co-founded the label in 1976. Proved it can remain relevant to the fickle junior customer with the launch of Roxy line in 1991 and the slightly older—but still surfing—menswear customer with Silver Edition, launched in 1999. Latest endeavor, Alex Goes, has the company going where few surf labels dare to go—the contemporary market. Alex Goes launched at MAGIC International in August to rave reviews from specialty surf shops as well as contemporary boutiques. Industry honors include California Mart’s California Performance award, given to the Roxy label in 1999. Joe RodriguezExecutive Director Garment Contractors Association of Southern California and Apparel Contractors Alliance of CaliforniaLos Angeles, Calif.

Serving 12th year as executive director of GCA and now in second year in same role for ACAC. Those positions make him the point man for group that represents roughly 1,200 contractors employing approximately 75,000 workers in state. Besides GCA, the umbrella of the ACAC takes in the American Chinese Garment Contractors Association (ACGCA), Northern California Chinese Garment Contractors Association (NCGCA) and Korean American Garment Industry Association (KAGIA). Past year has been tough, as lobbying efforts failed to stop trend toward more liberal global trade arrangements, with U.S.-China trade pact approved. That makes China’s inclusion in World Trade Organization (WTO) a likelihood—meaning the Asian giant will be in on the deal if and when all tariffs and quotas on apparel and textiles are put aside in 2005. And minimum wage increase by state—set to take effect in January—will likely lead a few members to call it quits. On a brighter note, the city business tax reform package—for which ACAC had actively lobbied—still has a chance with City Council, although it’s been a tough slog. Spends much of his time on educational programs for members, pushing moves toward package production among other strategies for offsetting cheaper labor overseas. Also put together a package with the state’s Employment Training Panel that aims to provide sizable rebates to contractors for the time spent by experienced employees teaching new employees the basics of the job or tutoring existing workers for skill upgrades. Native of Ecuador, grew up in New York. Spent more than 23 years as an officer and stockholder in the now-defunct Tobias Inc., a manufacturer of men’s sportswear that produced domestically and was well known for its Angels Flight pants during the days of disco.Ram SareenFounder/OwnerTukaTech Inc.City of Commerce, Calif.

India-born citizen of the world who has built his Commerce-based TukaTech into a significant player in the CAD/CAM hardware and software sectors over past three years. Combines engineering background with apparel experience to accentuate the analytical skills that his “TukaTeam” brings to production floor as complement to product line and service. Aggressive gains have been fueled by sales support that highlights “no service contracts, free training and turnkey commitment” on fully loaded systems. Former exec with Tolland, Conn.-based Gerber Technology, grew up in the trade, first in India, then Canada, before coming to California in the mid-1970s. Also counts stints at London Fog and several other sizable players on his resume. TukaTech expected to close in on $40 million in revenue for 2000 and plans to roll out as many as 250 TukaCenters over next 18 months. TukaCenters aim to provide training and data interchange services with open architecture—essentially able to translate all operating systems. The idea is to put designers and manufacturers in closer touch with their cutting rooms, contractors and other service providers. Several TukaCenters already up and running; wider roll out could mean new options for different segments of the industry and regions of the globe where technology lags, providing bridge to comfort zone and working demonstration of new efficiencies. Recent growth has some in industry circles buzzing that Sareen is considering the possibility of acquiring a significant stake in former employer Gerber, which is publicly traded. Sareen neither confirms nor denies the notion, but presence of finance whiz Roger Williams on TukaTech board lends weight to the possibility. The Tuka in TukaTech comes from Hindi childhood nickname for wife Iva, a prominent attorney who’s a bar member in three countries—India, Canada and U.S.—and who recently handled the settlement of a mass tort case on behalf of 10,000 South Bay residents related to explosion of a Texaco refinery in Wilmington, Calif. Iva more recently joined TukaTech amid sharp growth curve to oversee administration.

Barry SedlikManager of Economic and Business DevelopmentSouthern California EdisonLos Angeles, Calif.

Veteran Edison exec and longtime supporter of Los Angeles’ apparel industry. During tough times of early 1990s, among the first to seriously examine the trade’s potential. Driving force behind the Apparel Industry Revitalization Act of 1994, which emphasized strengths of the industry and called for more public/private cooperation. Founding member of Apparel Roundtable Educational Consortium—an effort that led to establishment of the California Fashion Association, on which he serves as a board member. Point man for Edison’s support of many industry-related incubation and training efforts, including Stitches Technology training center in South Central Los Angeles. Sex and the CityHBO ProductionsNew York, N.Y.

The television show first got viewers hooked with its comedic and outspoken take on sex in the ’90s. A new millennium and several Emmy nominations later, the show became the arbiter of style, thanks to costume design duo Patricia Fields and Rebecca Weinberg. The design team propelled fashion into mainstream by providing the show’s stars, Sarah Jessica Parker, Kim Cattrall, Kristin Davis and Cynthia Nixon with wardrobes that have come to define the essence of cosmopolitan style. The show has launched the Fendi baguette, stiletto heels and the gold, nameplate necklace into recent fashion fame. This season’s contribution to fashion infamy is the “Carrie Flower,” an oversize silk flower worn on the lapel, at the neck or on the wrist. The flower turned up in Spring collections by Mica and Dress, novelty top line Blur named a T-shirt-with flower pin after Parker’s character, and Atla Berman, designer for Los Angeles-based comtemporary label Single, says the “attitude” of the show has “found its way into the Spring collection.”Julie Su/Muneer AhmadStaff AttorneysAsia Pacific American Legal CenterLos Angeles, Calif.

Su is best known as an attorney who has filed suits against numerous apparel manufacturers in region, usually charging them with responsibility for wage and hour or other workplace violations related to the contractors they have hired. Su is currently on maternity leave, with Ahmad stepping into spotlight on recent cases, including a recently settled suit against XOXO. Legal actions have drawn wrath of manufacturers, many of whom say publicly or privately that they are carefully chosen targets—big enough to pay a sizable fine to avoid negative publicity and costly legal fees that come with protracted court battle. APALC says it handles cases that walk in the door of its headquarters at Wilshire Boulevard and Lucas Avenue, just a few miles northwest of Fashion District. Recent string of suits have prompted some in industry to question whether Jewish-owned companies are being targeted specifically. APALC denies any such propensity. Actions before and after implementation of AB633 seemed to establish a de facto link between manufacturers and contractors when it comes to liability for wage and hour violations. And XOXO case indicates that APALC has no plans to let up, despite howls of protest from manufacturers. Textile Association of Los Angeles (TALA)Los Angeles, Calif.

TALA is the oldest trade group in the industry. Boasts membership of more than 800 sales reps, the bulk of whom rep East Coast and/or European mills; TALA also extends its industry relations to processors (finishers and dyers), trucking companies and even dot-coms.

A driving force behind the twice-yearly International Textile Show at Cal Mart, one of the building’s strongest, most consistent franchises. Group’s annual directory is popular tool of the trade. Group made some key changes in 2000, with hire of president Leonard Horowitz as executive director, a staff position, replacing longtime veteran Bob Berg. Ann Davis took Horowitz’s spot as president, and those two—with backing of board—plan more outreach to younger reps as well as members of various ethnic communities. TALA’s influence is often unseen, thanks to long-standing industry ties of many of its senior members, which sometimes makes for quiet-but-effective lobbying campaigns on a variety of matters.

Group also has clout because of its interest in other sectors, such as fabric shipping, where a TALA recommendation can be a boon to a transport company. Charity is high on list of priorities, with annual Christmas Party raising money to send disadvantaged kids for day trips to area theme parks and scholarship fund helping local college kids with apparel studies.XOXODivision of Aris IndustriesVernon, Calif.

Junior label demonstrated strength of its brand by pulling parent company Aris Industries west. New York-based Aris Industries, maker of licensed Perry Ellis apparel and FUBU, recently confirmed plans to relocate to the West Coast. XOXO, founded in 1991, has built a strong business by consistently hitting key trends in the market under the direction of husband and wife team Gregg and Holly Fiene, president/CEO and head designer/merchandiser, respectively. The company has been both blasted for knocking off high-end fashion and praised for reinterpreting couture for the kids. The Aris deal helped pave the way to expand the company’s brand-building campaign, which features print ads in high-fashion glossies such as Vogue and Elle. Gregg Fiene, once the main voice of the company, has been fairly quiet since the Aris deal. He recently stepped back into the spotlight to respond to charges of labor-law violations at XOXO’s sewing contractors. Label nominated for California Designer of the Year award in 1998, the same year Gregg Fiene was named Man of the Year by the Fashion Industries Guild of Cedars-Sinai Medical Center.