California Apparel News

Aris Industries has re-acquired full licensing rights for XOXO following the Los Angeles-based junior label’s split with Grupo Xtra, which manufactured the company’s clothing and managed its day-to-day operations.

Aris, which entered a licensing agreement with Grupo Xtra last year that allowed the New York-based manufacturer the right to sell XOXO product to retail stores, cited improprieties and numerous violations of its agreement, including non-payment of royalties, as reasons for terminating its agreement.

Grupo Xtra owner Marc Stern filed for bankruptcy protection under Chapter 11 earlier this month, which resulted in the temporary layoff of 328 workers, according to an Aris spokesman. This week, Aris’ chairman and chief executive officer, Arnold Simon, and XOXO president Greg Fiene went to court to sever their relationship with the ailing company, as well as secure the jobs of the employees who produce XOXO clothing. Simon and Fiene reached an agreement in court to issue employees back wages so the workers could return to work today, according to a company spokesperson.

Following Stern’s Chapter 11 filing, a lien was placed on XOXO’s inventory. Simon said his company is in the process of buying back the inventory from Grupo Xtra’s creditors.

“The company was operating poorly under the direction of Stern,” Simon said. “You can’t take a license away from someone who is mishandling a business, but you can if they’re not paying you.”

Stern could not be reached for comment by press time.

XOXO was founded by Fiene in 1991 and acquired by Aris in 1999. Aris also holds the license for Baby Phat and owns the trademarks for XOXO, Fragile and Members Only.

The company currently operates one XOXO flagship store in New York and 12 outlets throughout the United States.

Regarding his company’s plans for the future, Fiene said, “For now, we plan to keep going and making the brand stronger.”