Warnaco Sells A.B.S.
Allen B. Schwartz is his own boss again. After four years under The Warnaco Group Inc. umbrella, the New York–based manufacturing giant has announced plans to sell its Los Angeles–based A.B.S. by Allen Schwartz division to Schwartz and former Guess? Inc. executive Armand Marciano.
The companies did not disclose details of the agreement but did say they expect the sale to be finalized by early next year.
With net revenues of $1.4 billion in 2002, Warnaco is the maker of Warner’s lingerie, Calvin Klein jeans and underwear, Chaps Ralph Lauren, Authentic Fitness, Cole of California and Speedo swimwear, among others.
Headquartered in Los Angeles, A.B.S. by Allen Schwartz designs and produces women’s contemporary sportswear and dresses, as well as men’s sportswear. Schwartz had headed his own apparel business for nearly 20 years before Warnaco purchased his company in 1999.
Two years ago, Warnaco filed a voluntary petition for protection under Chapter 11, citing an economic downturn, heavy competition and a weak retail environment as the leading sources of its financial troubles. The company reorganized and reemerged from Chapter 11 last February.
“During Warnaco’s reorganization, A.B.S. was identified as a non-core asset, and this sale, which is consistent with that determination, will enable us to focus our ongoing efforts on our core businesses. We wish Allen and Armand all the best,” said Joe Gromek, president and chief executive officer of Warnaco.
Schwartz was upbeat about the shift in ownership. “A lot of things changed after the restructuring of Warnaco,” he said. “I met Armand a few months ago and there was good chemistry. He’s an administrator and I am a designer, marketer and product person. I welcome that kind of relationship.”
Marciano founded Guess with brothers Maurice, Paul and Georges in 1982. He left the company last May. Schwartz dismissed industry talk that Marciano left Guess for health reasons. Schwartz said Marciano left the company to take a personal sabbatical.
“He’s not sick—he’s healthy as a horse, and he misses being in business,” Schwartz said. “Now he’s coming off his sabbatical with a lot of passion, vim and vigor.” —Claudia Figueroa
