Blue Holdings, Headgear in Joint Venture to Expand Labels
Blue Holdings Inc., a Los Angeles denim company, will be expanding its labels in a joint venture with a Virginia apparel company.
Blue Holdings announced on Nov. 5 that it had executed a joint venture with Headgear Inc. to expand the distribution of Blue Holdings’ blue-jeans labels Antik Denim, Yanuk and Taverniti So and its product line.
Under terms of the agreement, the joint venture, called Blue Holdings Headgear, will market, sell and distribute Blue Holdings’ denim labels in the United States.
In addition, BHH will develop new non-denim products, such as T-shirts, hoodies and footwear, under the Antik Denim, Yanuk and Taverniti So labels. Blue Holdings will continue to develop and source its blue jeans, which will then be sold to BHH for distribution. Each entity will own 50 percent of the joint venture.
To finance the new partnership, Headgear will provide BHH with $1.25 million in working capital. That is to be repaid by Blue Holdings’ portion of BHH’s operating profits. Headgear will also finance Blue Holdings’ denim production, which will be sold to BHH for distribution.
Headgear, based in Virginia Beach, Va., was founded in 1992 and is a designer and marketer of young men’s and juniors apparel. Its labels include Blac Label, Blac Label Pink and Blac Label Gunmetal.
“We are very excited to execute on this broad-based partnership with Headgear, which has re-energized our company during a difficult economic climate,” Glenn Miller, Blue Holdings’ chief executive, said in a statement. —Deborah Belgum
