Kellwood Acquires License for XOXO
St. Louis-based Kellwood Company has acquired the XOXO license for sportswear, dresses and intimates apparel from Global Brand Holdings, LLC in an effort to boost its juniors business. The acquisition of the juniors license agreement is subject to the completion of the sale of the XOXO trademark by Aris Industries Inc. to Global Holdings for a reported $43 million in cash.
Terms of the agreement include the acquisition of Aris Industries’ XOXO, Fragile and Lola trademarks.
A spokeswoman at Kellwood said the company has plans to expand XOXO’s trendy styles to include dresses and intimates apparel, as well as broaden its channels of distribution to better department stores and specialty retailers.
“It’s a very friendly deal where all three parties are working very closely to assure a smooth transition,” said Stephen Ruzow, president of Kellwood womenswear. “This presents an outstanding opportunity for Kellwood to expand in the juniors category with one of fashion’s top juniors brand.”
Kellwood’s Ruzow said that XOXO’s founder and chief executive officer Gregg Fiene will remain with Aris Industries, which will continue to produce and distribute the Baby Phat, Members Only, La Pepita and Koscuiko labels. XOXO generated sales of over $80 million in sportswear last year, said the company.
For Fall 2003, a dress collection will be produced by New York-based The Dorby Group, a juniors and missy dress and suit division of Kellwood. Kellwood’s intimates apparel division will produce XOXO juniors’ intimates. Neither division has appointed an executive to oversee operations, but will do so immediately, said Ruzow.
“What’s important to us is to continue the production of XOXO sportswear without any interruptions,” said Ruzow, adding that Aris will continue to produce XOXO sportswear until September 2003. Beginning in October, Kellwood Western Region will produce the XOXO sportswear line under the direction of Caren Belair, president of West Coast operations for Kellwood’s junior divisions.
I’t’s good for Aris. It’s good for Kellwood,” said Aris chairman and chief executive officer Arnold Simon, who purchsed XOXO from Fiene in 1999. “Kellwood will do well with it.” —Claudia Figueroa
