Maker of Joe's Jeans Sheds Crafts Division
Innovo Group Inc., the Los Angeles company that has morphed from a manufacturer of tote bags and denim aprons for hobbyists to a maker of designer jeans, sold its crafts and accessories division to a New York corporation.
For some time now, the division, based in Tennessee, was struggling and did not fit in with the company’s new focus on high-end denim pants and knit tops.
Innovo’s crafts and accessories division was sold on May 17 to Loew-Cornell Inc., a company that markets artist brushes, tools and accessories. Loew-Cornell is a subsidiary of Jarden Corp., based in Rye, N.Y. Jarden manufactures a diverse set of branded consumer products, including Sunbeam and Mr. Coffee appliances, Coleman outdoor gear and Bicycle playing cards. Terms of the deal were not disclosed, but company observers said the selling price was in the $2 million to $3 million range. Neither Jarden nor Innovo executives returned calls.
“It is a positive thing for them,” said J.P. Mark, president of Farmhouse Equity Research in Portsmouth, R.I., and an analyst who follows Innovo. “It helps them move into the jean business.”
Innovo has gone through a rough patch in the last couple of years. While it has been relatively successful marketing its Joe’s Jeans, it stumbled in trying to enter the urban market with Fetish by Eve and Shago by Bow Wow, two collections counting on hip-hop stars Eve and Bow Wow to garner success. But Shago by Bow Wow, geared toward male teen-agers, had a high price tag and did not sell well. Fetish by Eve had production problems and arrived late for the Holiday 2003 season. Innovo has since dropped the two urbanwear lines.
Last year, Innovo had a net loss of $9.5 million on $104.7 million in revenues. In 2003, it had a net loss of $8.3 million on $83.1 million in revenues. —Deborah Belgum
