2006 Year in Review

Real estate development, mergers and acquisitions, and retail rollouts—2006 was a year of expansion.

Real estate developers continued their love affair with loft living and lifestyle malls. At the boutique level, internationally known designers and brands continued to open boutiques in California. Meanwhile, purveyors of fashionable fast fashion, including H&M and Mango, entered the market just as local fast-fashion chain Forever 21 expanded into larger spaces and launched new concepts. And retailers looked for—and found—new neighborhoods to develop into shopping destinations.

Among manufacturers and designer labels, 2006 was a year of mergers and acquisitions, from contemporary label Vince to surf staple Ocean Pacific.

On the import/export front, globalization continued to open up new markets for California’s productions and its products. And as overseas-produced goods continued to flow into California, the state’s ports looked for ways to make the process faster and safer.

But it was also a year of conflict, as apparel and textile makers took their disputes over copyright, trademark and other business issues to court to resolve.

The California Apparel News takes a look at some of the top stories of 2006.

January

ACQUISITIONSIrvine, Calif.–based Billabong acquired Nixon Inc., an Encinitas, Calif.–based youth-inspired premium watch and accessories brand, for about $71 million.

INTERNATIONAL TRADEThe Chinese government resumed the practice of issuing and selling quota visas to apparel and textile factories looking to export to the United States. The practice was thought to be over when quotas were eliminated in early 2005 for all World Trade Organization members, but safeguard measures, or temporary quotas, were instituted to slow the flood of Chinese goods into the U.S. market.

LABOR LAWJose Millan, deputy secretary for enforcement with the Labor and Workforce Development Agency, announced he was leaving the position to take a job as vice chancellor for the economic and workforce development of the California Community Colleges system.

MANUFACTURINGSanta Barbara, Calif.–based Solitude signed a deal with JCPenney that gave the department store exclusive distribution rights to the upscale men’s surf brand.

REAL ESTATELos Angeles–based real estate developer Caruso Affiliated got the green light to proceed with a $264 million retail-residential project in Glendale, Calif., after a rival company, General Growth Properties, withdrew a lawsuit against the project. General Growth owns the Glendale Galleria, which is located a few blocks away from Caruso’s new American at Brand project.

R&A Associates, based in Encino, Calif., purchased the Country Fair Mall from Santa Ana, Calif.–based Triple Net Properties LLC for $15.1 million. The 400,000-square-foot Country Fair Mall is based in Woodland, Calif., near Sacramento, Calif.

The Gerry Building in downtown Los Angeles reached 90 percent occupancy, thanks to several new tenants, including Miss Sixty, Drifter and Nap Intimates.

RETAILRetail sales for Holiday 2005 grew 3.2 percent over the previous year, according to the International Council of Shopping Centers, which credited the modest uptick to lastminute and post-holiday shopping.

TRADE SHOWSRetailers turned out for the Jan. 13–17 Los Angeles Fashion Market to place orders for Summer, as well as orders for immediate Spring goods.

Surf Summit added a new category—snow-inspired apparel and hardgoods—to its Jan. 13–15 run in Orlando, Fla.

Print and design services trade show Prelude hosted its second run Jan. 24–25 at the California Market Center.

ENK’s new denim-only trade show, Blue, bowed Jan. 21–23 at The Tunnel in New York, with 49 exhibitors and a turnout of some of the country’s bestknown jeans retailers.

Regional menswear buyers got a jump on Fall at the Jan. 29–30 run of the Westcoast Exclusive menswear show in Los Angeles, held just weeks before the giant MAGIC Marketplace in Las Vegas.

February

ACQUISITIONSVernon, Calif.–based BCBG Max Azria purchased bankrupt G+G Retail Inc. for $35 million. The New York retail chain operates 566 stores under the G+G and Rave nameplates.

Miami-based Perry Ellis International Inc. completed its acquisition of Irvine, Calif.–based Gotcha International for $12 million. The deal included the Gotcha, GirlStar, MCD and Fishman brands.

INTERNATIONAL TRADEJanet Labuda, director of the U.S. Textile Enforcement and Operations Division of U.S. Customs and Border Protection, spoke to members of the California Fashion Association about current import issues affecting the industry at a CFA event sponsored by FedEx.

RETAILClothing retailers reported a 5.2 percent increase in samestore sales in January, compared with the previous year, according to the International Council of Shopping Centers.

TRADE SHOWSTraffic was brisk, and the forecast for the year was positive at the Feb. 21–24 run of the MAGIC Marketplace and its satellite shows— the Project Global Trade Show, Pool, The Exclusive, ASAP Global Sourcing Show, Off- Price Specialist and Women’s Wear in Nevada— in Las Vegas.

The Feb. 25–27 run of Lingerie Americas in New York brought 250 brands—including 41 new exhibitors—to the Metropolitan Pavilion and the Altman Building for the Fall/Winter ’06 show.

A blizzard dumped two feet of snow on New York, but that did not keep buyers away from contemporary and young designer trade shows Fashion Coterie, Designers & Agents and The Train.

March

INTERNATIONAL TRADEEl Salvador became the first Central American country to officially join the Central American Free Trade Agreement, but the legislation will not be enacted until the remaining five countries also ratify the agreement.

After days of intense negotiations, the United States and Colombia agreed upon a free-trade deal that will eliminate tariffs and quotas on most goods and services.

LAWNew York–based retailer Ann Taylor Stores Corp. reached a tentative $6.5 million agreement to settle two California class-action suits concerning overtime violations brought by two former managers of AnnTaylor stores in California.

The Copyright Office of the Library of Congress recommended passage of proposed copyright legislation that has some in the industry worrying that copyrighted materials, such as textile and jewelry designs, will be made more vulnerable to infringement. But others view the proposed “orphan works” legislation as a victory for the “little guys” in the apparel industry.

Traffickers and counterfeiters have more to lose with a federal bill that will close loopholes and strengthen criminal penalties, which passed the United States House of Representatives. H.R. 32, also known as the “Stop Counterfeiting in Manufactured Goods Act,” was passed by the Senate in February.

MANUFACTURINGCalifornia’s acting labor commissioner, Robert Jones, fielded questions and concerns on a few hot-button issues affecting the apparel industry at a March 6 members meeting of theCalifornia Fashion Association.

After 86 years serving apparel manufacturers, wholesalers and importers in Northern California, nonprofit organization San Francisco Fashion Industries shut its doors on March 31.

REAL ESTATEA new $63 million apparel wholesale mart was proposed for the eastern boundaries of the Los Angeles Fashion District. Shawn Zackary, of Paramount Textiles, and Mayer Separzadeh, of Action Investment Group Inc., formed a limited partnership to develop a 109-unit open-air wholesale center called Stanford Wholesale Mart on East 12th Street. The new mart is expected to open in late 2007 or 2008.

RETAILSales at apparel chain stores declined by 1 percent in February, but, for the most part, America’s business was good, according to the International Conference of Shopping Centers.

Anaheim, Calif.–based retailer Pacific Sunwear Inc. announced it would open the first of its new footwear concept store, One Thousand Steps, in April. The company said it planned to open the first six stores in California, Michigan, Florida and Rhode Island.

TRADE SHOWSApparel Market Transport owner Gerry Murtagh announced he would launch San Francisco’s second contemporary trade show in April when the Contemporary Association of Los Angeles debuts at the Fairmont Hotel. The new show competed with the Los Angeles Contemporary Association Show, held at the nearby Huntington Hotel.

April

ACQUISITIONSNew York–based Iconix Brand Group—owner of Candie’s, Bongo, Joe Boxer, Rampage and Badgley Mischka— struck two deals to acquire Santa Monica, Calif.–based Mossimo Inc. for about $119 million and the Muddtrademark from Mudd USA, a Delaware-based limited-liability company.

Grass, the contemporary label launched in 2003, was sold for an undisclosed sum to Larry Hansel, the man who started Rampage Clothing Co. Two years ago, Hansel had purchased a 50 percent stake in the label, started by John Cherpas and Kellie Delkeskamp.

INTERNATIONAL TRADENicaragua and Honduras joined the Central American Free Trade Agreement, leaving three remaining CAFTA countries to ratify the trade agreement.

Peru and the United States signed a free-trade agreement on April 12. The deal allowed Peru’s goods into the United States without subjecting them to duties or quotas.

MANUFACTURINGTarrant Apparel Group ended its licensing agreement with entertainer Beyonceacute; Knowles to produce her House of Dereon line and filed a $100 million breach-of-contract lawsuit against Jessica Simpson. The suit charges that the pop star crippled the company’s licensing efforts by failing to promote or give design approval to the moderately priced apparel and jeans line that bore her name.

Swimwear maker Beach Patrol Inc.—whose stable of juniors and contemporary labels include Jag, Esprit Beach, Daffy and L.E.I.—was taken over by a court-appointed receiver at the request of the swimwear maker’s principal lender, CIT Group/Commercial Services Inc.

RETAILFraser Ross, owner of the celebritydriven contemporary boutique Kitson on Robertson Boulevard in Los Angeles, will enter the men’s business when he opens Kitson Men in August. Ross opened a children’s store, Kitson Kids, last year.

Retailers posted softer-than-expected sale results in March, according to the International Council of Shopping Centers, which saw a slim 1.9 percent increase, compared with the previous year. Many retailers blamed the sluggish sales on the Easter holiday, which fell this year in April, instead of March.

Music retailer Virgin Entertainment Group Inc. began selling fashion and accessories at its 17 Virgin Megastores across the United States. To the standard music-store fare of T-shirts, Virgin added collections of contemporary clothing. The retailer’s fashion initiative was a response to the changing taste of consumers, who are increasingly turning to the Internet to purchase and download music.

TRADE SHOWSA March 25 protest against federal immigration legislation temporarily disrupted the Los Angeles Fashion Market when an estimated 500,000 protesters converged in downtown Los Angeles. Traffic ground to a halt, and protesters filled the streets around the wholesale marts, the California Market Center, The New Mart, the Cooper Design Space and the Gerry Building. End results for the market were mixed, with some exhibitors saying traffic never recovered and others saying it was a strong market in the end.

The fifth floor of the Gerry Building in downtown Los Angeles hosted the first Los Angeles run of the Boutique Lingerie Show, which included lingerie, sleepwear and crossover companies. Organized by New York–based lingerie designer Samantha Chang, the Boutique Lingerie Show first launched in New York in 2004.

The reviews for the April 3–5 run of the Los Angeles Majors Market at the California Market Center were mixed, but many exhibitors said the relatively new Fall market could grow to rival its Spring counterpart held in October.

At Material World’s April 4–6 run in Miami Beach, Fla., 150 of the 400 exhibitors were located in the trade show’s sourcing section, including exhibitors from Latin America, Southeast Asia and China.

The April 24–26 edition of the Los Angeles International Textile Show at the California Market Center added international pavilions and garnered mixed reviews. New this year were the Korean Pavilion and a union of French and Italian exhibitors to that created the high-end European Pavilion.

May

ACQUISITIONSCommerce, Calif.–based apparel maker Innovo Group Inc. sold its private-label division, which manufactures jeans for Target’s Mossimo line and American Eagle Outfitters. The division was sold for approximately $10.4 million to New York–based manufacturer Cygne Designs Inc.

RETAILBritish fashion house Ted Baker opened its second-largest American store at the South Coast Plaza in Costa Mesa, Calif.

TRADE SHOWSNew York–based trade show producer ENK International announced it had taken on an equity partner in Wall Street investment firm Forstmann Little & Co. and was looking to expand its presence on the West Coast.

June

INTERNATIONAL TRADECustoms officials searched for the exporter of more than 200 containers of apparel that were classified as furniture parts and toys before being shipped to the ports of Los Angeles and Long Beach. The goods, sent from Hong Kong and Shanghai, were seized at the ports in April when U.S. customs officials learned that the clothing had been deliberately classified as furniture parts and toys to avoid tariffs and evade apparel quotas, which apply to China until the end of 2008. The apparel was destined for several different retail and manufacturing clients throughout the United States.

Vietnam and the United States signed a trade pact that opens the way for the Southeast Asian country to enter the World Trade Organization. The trade pact, which must be approved by the U.S. Congress before it can be implemented, would eliminate U.S. quotas on Vietnamese apparel and textile goods and reduce Vietnamese tariffs on many U.S. goods.

MANUFACTURINGLos Angeles–based Sub-Urban Brands Inc., maker of 3-year-old streetwear brand Whiteboy, reached its initial stock offering on the Over the Counter Bulletin Board stock exchange via a reverse merger with DP&D Inc., a Higley, Ariz.–based event-planning company.

Universal Blue—owner of the Blue Cult, Blue Cult Elite, Sacred Blue and Blue 2 denim brands—announced on June 6 that it had signed a partnership agreement with nZania LLC, an Irvine, Calif.–based manufacturer and distributor. The deal gave nZania—which manufactures and licenses lines for Disney, Levi’s/Warhol, and juniors brands BB Dakota and Dr. Seuss—exclusive rights to distribute Blue Cult, Blue Cult Elite and Sacred Blue in the United States. The deal also gave licensing rights for juniors brand Blue 2 to nZania, which began shipping new product for the line in October.

West Coast labels Trovata and Tom Binns won top prizes at the Council of Fashion Designers of America Fashion Awards on June 5 in New York. Trovata won the Swarovski Perry Ellis Award for Emerging Talent, and Binns won the Accessory Designer of the Year Award.

PHILANTHROPYSelf Esteem’s Richard Clareman, Hana Financial’s Sunnie Kim and almost 800 guests helped raise nearly $1 million for the annual City of Hope Apparel Industries Group Award of Hope Gala, held June 10 at the Beverly Wilshire hotel. Co-honorees Clareman and Kim helped raise the funds for the Duarte, Calif.–based medical research and treatment center.

RETAILRetail sales increased 0.1 percent for the week ending June 3, according to the New York–based International Council of Shopping Centers. The numbers followed a strong showing for May, when retail sales for chain stores increased 4.1 percent from the previous year.

A handful of new retail boutiques, including Push Emporium and designer sneaker store Carves, joined a slew of new restaurants in downtown Los Angeles to capitalize on the residential growth in the area.

Caruso Affiliated, the owner of The Grove in Los Angeles, announced that New York retailer Barneys Co-Op will open at the shopping center in mid-March 2007.

TECHNOLOGYAbout 100 retailers, manufacturers, technology executives and educators got a glimpse into the world of Spanish fastfashion retailer Zara at a June 2 conference hosted by Cary, N.C.–based TC2 and held at the Fashion Institute of Design & Merchandising in Los Angeles. The event was presented by Industry Forum Services, a London-based government and retail industry–based research group.

TRADE SHOWSThe inaugural Action Sports Retailer Trade Expo’s ASR Holiday show, held in a tent on the grounds of the Newport Dunes Resort in Newport Beach, Calif., May 31–June 1, drew approximately 500 buyers from a variety of local, national and international retailers, including Pacific Sunwear, Active, Tilly’s, Jack’s Surf Shop, Surfside Sports, Sun Diego and Beach Bums.

Retailers placed orders for feminine styles for Fall II/Holiday at the June 9–13 Los Angeles Fashion Market, where exhibitors reported strong attendance and a belief that the short Holiday season remains an important one for retailers.

New York–based Designers & Agents co-producers Ed Mandelbaum and Barbara Kramer announced they plan to add menswear to their August D&A and January D&A Annex shows held in Los Angeles.

July

INTERNATIONAL TRADEThe U.S. Department of Homeland Security has mandated that anyone who works inside the gates of the nation’s ports must carry a high-tech security card that identifies him or her by fingerprints or retinal scan. The ports of Los Angeles and Long Beach are expected to be among the first ocean gateways in the nation to employ the tamper-resistant security cards, called a Transportation Worker Identification Credential, which will cost workers $139 and last five years.

Guatemala became the fourth country to join the Central American Free Trade Agreement, leaving only Costa Rica and the Dominican Republic to sign on.

MANUFACTURINGHuntington Beach, Calif.–based Quiksilver struck a deal with a Russian apparel maker to design, manufacture, market and distribute Roxy-branded products in Russia. The deal with Sprandi International replaced the surf giant’s previous licensing and distribution agreement with another company.

REAL ESTATEHuntington Beach, Calif., officials announced that they are considering closing the city’s Main Street to traffic to create a pedestrian-only shopping district, home to retailers such as Huntington Beach Surf and Skate, Jack’s Surfboards, Diane’s, Merilees and The Closet.

RETAILSurf-and-skate chain store Active announce plans to open a flagship store in Santa Monica, Calif. The Chino, Calif.–based retailer, founded in 1989, typically opens its stores in new shopping neighborhoods in California’s Inland Empire. The new store will be steps from Santa Monica’s bustling shopping thoroughfare, the Third Street Promenade. The company is planning to double its number of stores from 15 to 30 over the next five years.

Charlotte Russe Holdings Inc. announced it is closing its Rampage stores, which it has owned for nearly 10 years. The company said it is selling the leases, store fixtures and equipment for 44 of its Rampage stores to Los Angeles–based Forever 21 Inc. for $14 million. Charlotte Russe said it plans to convert four Rampage stores into new Charlotte Russe stores, and liquidate the remaining 16.

Many retailers avoided the traditional June gloom. They reported increases in comparable-store sales, particularly in the luxury and specialty-store sectors. Apparel retail sales increased 0.6 percent, and chain-store sales rose by 2.6 percent in June, according to the International Council of Shopping Centers.

Los Angeles–based fast-fashion retail chain Forever 21 opened a 400,000-square-foot flagship store on the site of the old Saks Fifth Avenue outlet in Pasadena, Calif.

TRADE SHOWSNearly one year after the Pool trade show was acquired by Advanstar Communications, founder Ronda Walker left the streetwear trade show. When Pool joined Advanstar, parent company of the MAGIC Marketplace and Project Global Trade Show, in August 2005, Walker agreed to head up the show for three years. According to Advanstar, Walker’s decision to leave was mutual. Pool’s director of operations, Mindy Weiner, will take on Walker’s duties. Advanstar also promoted Laura O’Connell from vice president and general manager to executive vice president of fashion.

The July 15–19 run of the Swimwear Association of Florida’s SwimShow 2007 featured about 2,000 swim and swim-related lines and retailer turnout from such companies as Pacific Sunwear, Federated Department Stores, Henri Bendel, Saks Inc., Bergdorf Goodman, Neiman Marcus, Barneys New York, JCPenney, Sears, Victoria’s Secret and Diane’s Swimwear.

Hong Kong Fashion Week drew more than 1,100 exhibitors and 21,351 visitors to the July 11–14 run of the show, held at the Hong Kong Convention and Exhibition Centre.

The Los Angeles–based Pool trade show bowed its first New York edition July 17–19, side-by-side with the Project Global Trade Show at the Jacob K. Javits Convention Center. The two shows were both acquired by Advanstar Communications, parent company of the MAGIC Marketplace in Las Vegas. Nearly 6,400 attendees turned out for the joint Pool/Project show in New York.

Blue, the New York–based denim trade show, returned for its second edition, held July 24–26 at the Tunnel in New York. New York–based ENK International—organizer of the Fashion Coterie, Intermezzo and Bright Companies shows— debuted the show in January with 52 exhibitors. The July show featured 99 denim brands, including Hudson Jeans, Goldsign, Earnest Sewn and Paige Premium Denim.

The California Market Center’s Glow show—the marketplace for accessories, apparel and gifts—had a quiet July 28–30 run despite having 20 exhibitors more than the last show in March. The show, held in the penthouse of the CMC, ran concurrently with other gift events at the L.A. Mart, the Los Angeles Convention Center and permanent gift showrooms at the CMC.

Lingerie Americas drew 2,709 buyers—an increase of 2 percent from last year—at its July 30–Aug. 1 show, held at the Metropolitan Pavilion and the Altman Building in New York.

August

ACQUISITIONSThe acquisition of Santa Monica, Calif.–based Mossimo Inc. by Iconix Brand Group was delayed for two months while the Securities and Exchange Commission examined the $119 million deal. New York–based Iconix owns several brands, including Candie’s, Joe Boxer and Rampage.

City Girl was sold to Dallas-based Sharon Young Inc. for an undisclosed amount. The Texas company acquired the City Girl by Nancy Bolen, City Girl Sport and Marie St. Monet labels. The Ruby Cho label was not included in the deal.

FASHION WEEKSA new location marked the third season for San Francisco Fashion Week, organized to bring more awareness to Bay Area designers. Eighteen established and up-and-coming designers showcased their fashions Aug. 23–27 at the shows, held at The Galleria at the San Francisco Design Center.

LAWSUITSBarbara Kramer—co-producer of the Designers & Agents apparel shows in Los Angeles, New York and London—filed a lawsuit against Los Angeles designer Henry Duarte, seeking more than $1 million in damages over a business venture in which the pair was involved several years ago.

Paul Frank Sunich, the ousted Paul Frank Industries co-founder and designer, ended his legal fight for “Julius the Monkey,” the character that adorned much of the company’s products. Sunich, who left PFI in November 2005, filed a pair of lawsuits against the company he helped found in 1995. A copyrightinfringement suit, filed in the U.S. District Court’s California Central District, claimed the company infringed on Sunich’s copyright and demanded reimbursement for its use of the Julius character since Sunich left the company. He filed a second lawsuit seeking to dissolve the company. That lawsuit is still pending.

MANUFACTURINGLos Angeles–based private label apparel maker Tarrant Apparel Group said it paid $400,000 to terminate its licensing agreement with designer Cynthia Rowley. Tarrant had been producing the Souvenir by Cynthia Rowley denim label since 2004, but terminated the deal in July. No reason for the breakup was given.

Huntington Beach, Calif.–based Quiksilver Inc. launched a new contemporary men’s line called Santa Monica. The new line was at the MAGIC Marketplace in Las Vegas in August. The new line is priced 40 percent higher than Quiksilver’s main line, which is targeted at males aged 14 to 24.

REAL ESTATEUri Harkham, founder of Jonathan Martin/Hype, announced plans to bring more retail to the Los Angeles Fashion District. The apparel manufacturer and real estate developer is teaming with brother Efrem and associate Moshe Aflalo to develop an upscale retail complex called The Plaza at 12th and Wall streets. The 120,000-square-foot, six-story building will feature retail space for childrenswear and accessories, as well as restaurants, other conveniences and three floors of parking.

RETAILConsumers were expected to stay home during July as heat across North America was sweltering and gas prices remained high. Instead, the retail sector increased by 3.5 percent over the previous year, according to the International Conference of Shopping Centers.

Los Angeles–based premium-denim brand True Religion Apparel Inc. announced plans to open a 3,000-square-foot outlet store at the Desert Hills Premium Outlets in Cabazon, Calif., in time for the Christmas shopping season. The company said it would also open True Religion boutiques in New York and Miami and will run four stores by the year’s end.

Los Angeles–based manufacturer BCBG Max Azria debuted its first Max Azria store located on Melrose Avenue in Los Angeles. The 2,700-square-foot store houses the newly launched Max Azria collection. The company said it plans to build four more Max Azria boutiques by the end of the year, including stores in Fashion Island in Newport Beach, Calif.; in New York’s Soho neighborhood; in Palm Beach, Fla.; and on Avenue Victor Hugo in Paris.

TRADE SHOWSBuyer attendance was up by 20 percent at the Aug. 6–7 run of Westcoast Exclusive, held at the Embassy Suites in Los Angeles, according to show organizers, who said the show featured about 60 exhibitors. Westcoast Exclusive also produces The Exclusive trade show, which runs concurrently with the MAGIC Marketplace in Las Vegas.

Opening day of the Aug. 11–15 run of Los Angeles Fashion Market fell one day after British authorities foiled a major terrorist plot involving flights from London to the United States. Many exhibitors said some buyers could not make the typically small market because of congestion at airports stoked by fears of terrorism. Still, among the retailers that did turn out were Nordstrom and Macy’s West, as well as Los Angeles– area stores M. Fredric, Polkadots and Moonbeams and Diane Merrick.

Business boomed in many quarters of the massive MAGIC Marketplace and at the Project Global Trade Show, while talk on the show floor revolved around the planned move of the Pool trade show for the next run of the shows in February. The three shows ran Aug. 28–31 in Las Vegas and coincided with several satellite shows, including The Exclusive; the ASAP Global Sourcing Show; the Off-Price Specialist Show;Women’s Wear in Nevada; Accessories The Show; and, new to the lineup, ENK’s ACICLV, the Accessories Circuit Intermezzo Collections Las Vegas show.

September

ACQUISITIONSChicago men’s suit maker Hartmarx Corp. purchased Los Angeles–based e-tailer Sweater.com and the company’s One Girl Whohellip; knitwear brand for $12.4 million.

Life and Death designers Philippe Naouri and Alexandre Caugant signed a partnership deal with Blue Holdings, giving the denim maker a 50 percent stake in the knit-based line, which launched earlier this year. The designers each retain a 25 percent stake. Naori and Caugant also design for premium-denim brand Antik Denim, owned by Blue Holdings.

MANUFACTURINGOcean Pacific, a division of Warnaco Group, announced it is narrowing its focus for its juniors brand. Op Sunwear, a new knit-based juniors collection of swim-related apparel, had a soft launch at the MAGIC Marketplace in Las Vegas but officially launched at the Action Sports Retailer Trade Expo in San Diego. Eventually, the company will reintroduce outerwear, denim and womenswear to its juniors offerings but not until the Op Sunwear concept has caught on, said Op Chief Executive Dick Baker.

RETAILRetail sales for chain stores did not meet expectations in August, according to the International Council of Shopping Centers, which predicted a 3 percent increase but only found a 2.7 percent increase in sales.

Los Angeles–based premium-denim brand True Religion signed a lease for a 1,226-square-foot retail space on Robertson Boulevard in Los Angeles.

Los Angeles–based designer Nony Tochterman opened her first retail store, House of Petro Zillia, on Los Angeles’ West Third Street.

TRADE SHOWSBuyers attending the Sept. 15–17 run of Surf Expo in Orlando, Fla., homed in on a mix of fashion-forward styles to lure more style-conscious consumers into core shops. Organizers said traffic increased 5 percent over the previous year, making this the highest-attended Surf Expo ever. The show features 882 exhibitors and nearly 5,200 lines.

The third season of Milano Unica, the large European textile trade show, drew a crowd of European attendees and a smattering of American buyers to the Sept. 12–15 run of the show, held at the Fieromilanocity in Milan, Italy.

Exhibitors and retailers reported high energy and plenty of newness at the Sept. 8–10 run of the Action Sports Retailer Trade Expo in San Diego. The show drew 435 exhibitors, more than 700 brands and more than 18,000 attendees. Three-year-old satellite show Agenda drew more than 2,000 attendees, including buyers from Metropark, Hot Topic, Urban Outfitters, Up Against the Wall and Virgin Megastores.

The Sept. 25–28 run of