California Apparel News

New York-based women’s apparel maker Liz Claiborne announced this week that it has agreed to acquire 100 percent of the stock from Travis Jeans Inc., which currently holds all assets for the Juicy Couture label. A Liz Claiborne spokeswoman said all parties agreed not to disclose details of the merger.

Arleta, Calif.-based Travis Jeans Inc. was founded six years ago by Pamela Skaist-Levy and Gela Taylor, who will remain co-presidents. The company designs, markets and wholesales women’s, men’s and children’s sportswear and accessories through company showrooms in the United States, Canada, Europe and Japan.

Paul Altman, Mark Vidergauz and Fred Schmitt of Sage Group LLC, an investment bank in West Los Angeles that advises middlemarket companies in a variety of industries, counseled Juicy Couture on the acquisition.

“We’re very pleased with the outcome,” said Altman, who said the deal had been in the works since early last year. “We think it’s a good opportunity for Liz Claiborne to expand their portfolio, but it’s a better opportunity for our client to take their business to the next level, which will provide a significant upside in the future.”

Juicy Couture—which sells its high-end casual line at specialty retailers such as Saks Fifth Avenue, Henri Bendel, Barneys and Fred Segal—reported sales of $47 million last year. The brand’s casual, contemporary apparel will give Liz Claiborne access to highend channels, according to industry sources.

“Juicy is one of the strongest trending brands in the upscale contemporary and denim zones,” said Liz Claiborne chairman and chief executive officer Paul R. Charron. “With its appeal to a more fashion-conscious and affluent consumer, Juicy Couture adds another dimension to our portfolio, further broadening our ability to offer apparel and accessories across a wide range of consumer lifestyles and tastes.”

Liz Claiborne currently owns more than 30 brands, including West Coast-based contemporary labels Lucky Brand Dungarees and Laundry by Shelli Segal. Last September, the company acquired New York-based womenswear line Ellen Tracy for $180 million.

Juicy Couture and Liz Claiborne executives declined to give early projections, but Altman said Juicy has a strong growth trajectory ahead of it because of product development that is currently in the works.

Juicy Couture will expand its men’s and children’s lines and pursue licensing for fragrances, handbags and accessories, as well as cosmetics. The company plans to open a few flagship stores as early as next spring.

Altman said there are many similarities between the Juicy Couture and Liz Claiborne deal and the Earl Jean and Nautica Enterprise acquisition brokered by Sage two years ago.

Juicy Couture demonstrated significant growth and doubled its shipping units last year but needed capital and a new level of expertise. The company needed a partner that could help with sourcing relationships, manufacturing and distribution, Altman explained.

“Between this acquisition and other apparel companies we are currently working with, we feel like we’ve built a practice in helping unique and profitable brands find new and exciting homes,” Altman said.

In other related news, Liz Claiborne recently reached an agreement with Kellwood Co.’s Halmode division to license women’s dresses and suits under the Liz Claiborne, Liz Claiborne Woman and Liz Claiborne Petites brands. Former Sag Harbor division head Denise Miller will serve as president of the Liz Claiborne dress and suit division.

“Dresses and suits are an important segment of women’s apparel, and Kellwood has shown considerable success in building this aspect of their business,” said Barbara J. Friedman, president of licensing for Liz Claiborne, in a recent statement.

A spokeswoman for Liz Claiborne said a full launch is scheduled for Spring 2004, but a few pieces from the collections will be available in stores beginning this fall.