Candie's, Inc. Announces Strategic Alliance With TKO Apparel, Inc.Business Editors NEW YORK--(BUSINESS WIRE)--June 10, 2004 Candie's, Inc: -- TKO To Purchase Company's Jeanswear Subsidiary -- Grants Exclusive Licensing Agreement For BONGO Jeans -- TKO Takes Equity Stake In CANDIE'S Candie's, Inc. (together with its subsidiaries and affiliates, the "Company" or "Candie's") today announced a long term strategic alliance with TKO Apparel Inc. (together with its subsidiaries and affiliates, "TKO"), a Miami-based apparel company that specializes in the manufacturing of private label bottoms for national brands including Levi's, Calvin Klein Noun 1. Calvin Klein - United States fashion designer noted for understated fashions (born in 1942) Calvin Richard Klein, Klein , Phillips Van Heusen and Perry Ellis Perry Ellis (March 3, 1940 – May 30, 1986) was an American fashion designer who founded a sportswear house in the mid-1970s. The Rise of Perry Ellis Perry Edwin Ellis was born in Portsmouth, Virginia, on March 3, 1940, as the only child of Edwin and Winifred . Under the terms of the agreements, TKO will purchase Candie's wholly owned jeanswear subsidiary, Unzipped Apparel LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Unzipped"), on or before February 1, 2005. The purchase price will be based upon the tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). of Unzipped at closing. Candie's and TKO have also entered into a long term licensing agreement, which will commence in August 2004, pursuant to which TKO, through Unzipped, will design, manufacture and sell BONGO(R) jeans throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . TKO will also purchase 1,000,000 shares of Candie's stock for $2.2 million. Commenting on the agreements, Neil Cole Neil Cole (born 1 March 1972) is an English television presenter, comedian, radio broadcaster and actor. Early life Cole was born in Bristol in 1972, and attended King Edward Grammar School in Chelmsford. He studied English & French Literature at Bristol University. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Candie's stated, "The strategic alliance with TKO is significant as it completes our transformation from an operating company operating company A business that engages in transactions with outsiders. to a brand management company, while building on the success of Unzipped with BONGO jeans. TKO brings a wealth of design and sourcing expertise, which we believe will permit BONGO to continue to expand its market share with the fashionable, high quality product that our customers expect." James Tate, CEO of TKO commented, "We are looking forward to working closely with the Unzipped team. BONGO is a leader in the junior jeans wear market and represents an exciting growth opportunity for TKO. Our acquisition of Unzipped and our investment in Candie's stock reflects our commitment to a fruitful and long term alliance for both companies." Gary Bader, President of Sales, BONGO jeans commented, "Everyone is very excited about this alliance. TKO is noted for their design and sourcing expertise which will enable Bongo to better serve our core customer. We are looking forward to working with them on a smooth transition." About Candie's, Inc. Candie's, Inc. is in the business of licensing the CANDIE'S(R) and BONGO(R) names on a variety of young women's footwear, apparel and fashion products, and is a leading designer, distributor and marketer of jeans wear under the Bongo brand through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Unzipped Apparel, LLC. Through its wholly owned subsidiary Bright Star Footwear, LLC the company arranges for the manufacture of private label men's footwear products for mass market and discount retailers. For investor information please visit the corporate web site at http://www.candiesinc.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion