(Filed Under Fashion News). As of June 2nd, Couture Active Wear, Inc. is no longer in partnership with Triumph Apparel Corporation (formally Danskin, Inc.) For the past year and a half, Triumph has overseen the U.S. production of Couture's entire line, which is comprised of over 85 workout pieces including sports bras, tops, capris and long bottoms.
Couture Active Wear implied in a statement the termination of this partnership is because of Triumph's finanical woes and the closing of its manufacturing plant in York, Pennsylvania, as well as its distribution center in Springettsbury Township, Pennsylvania. Both closings took place this past winter. Janis Saffell, president and founder of Couture Active Wear, cited a February 17, 2009, article in Business Journal Daily, in which Triumph's Carol Hochman was quoted saying that the closings were related to the company's inability to obtain the capital needed for continued operations. The Business Journal Daily also reported in the article that, as a result of the closings, Triumph laid off 226 workers.
But according to Kevin Nesbit, executive vice president and COO of Triumph Apparel, the termination of its relationship with Couture Active Wear had nothing to do with the closings. Nesbit reported that Couture Active Wear owes Triumph $75,000, and that Triumph is consequently sitting on $30,000 worth of the activewear company's goods. He said Triumph has been unable to reach Couture Active Wear regarding the outstanding bill, and has not shipped for them in 45 days.
Nesbit added that Triumph is relocating its manufacturing plants to the Caribbean and South Carolina because of the lower cost of production in those regions.
In other news, on April 29th, 2009, Triumph announced that KSL Ventures, LLC had acquired 55 percent of the company's equity and voting stock in connection with a capitalization and recapitalization of the company. Since then, KSL Ventures has been responsible for sourcing, manufacturing, distribution and marketing opportunities for Triumph's well-known Danskin brand, which the company began licensing from an affiliate of public company Iconix in August 2007.
When Triumph sold its Danskin Intellectual property to Iconix in 2007, the company was required to change its name from Danskin, Inc. to Triumph Apparel Corporation. Iconix' revenue during 2008 totaled at $216.76 million, and revenue for its 2009 first quarter was $50.5 million, a 9 percent drop from its revenue during last year's first quarter of $55.5 million. Since Triumph Apparel is privately-held company, BODY was not able to obtain its financial statements.
Saffell, who started Couture Active Wear in 2000, is reportedly in negotiations with manufacturers in California, Miami and the Dominican Republic, to take over the company's production. Saffell would not release the names at press time.
Reach Janis Saffell at Couture Active wear via e-mail: Janis@CoutureActivewear.com. Reach Kevin Nesbit at KNesbit@Danskin.com.
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