Union Bay Parent Co. Buys Howe, Hause of Howe Eyes Global Expansion With Seattle Pacific Sale

Seattle Pacific Industries, Inc., makers of the Union Bay label, purchased contemporary menswear label Hause of Howe for an undisclosed sum in a deal announced Oct. 9. Now, the Huntington Beach, Calif.–based label plans to go on a global growth spurt, according to Creative Director Jade Howe.

“The label was underfunded,” Howe said. “It’s been difficult to market the brand with the fashion shows we needed to produce or the distributors we need to work with.” Seattle Pacific’s annual revenues were $300 million in 2002, the last year the private company disclosed its revenues.

With Seattle Pacific’s financial and distribution means, Howe announced plans to design an accessories line, which will feature belts, shoes and jewelry; a women’s label; and a separate line for men’s suitings with limited distribution.

Seattle Pacific President Steve Ritchey said his company plans to eventually open Hause of Howe stores, as well as make it an international label. He forecast that 40 percent of Hause of Howe’s volume would be sold overseas in Japan, Canada and Western Europe. The company plans to integrate Hause of Howe into its corporate family, according to Ritchey, who promised the menswear label would maintain its unique style. “We’re going to focus on the distribution angle initially,” he said. “If we do it right, you’re not going to see much of us.”

Howe said that the sale to the Seattle-based fashion powerhouse would allow him to focus his energies on the design and merchandise of the 5-year-old line. He dropped his title as label president, and Seattle Pacific, which manufactures eight lines, including Union Bay, Saltaire and Sergio Valente, has hired an executive to run the Hause of Howe business. (According to Howe, the name of the executive will be released next week.)

The new relationship will give Hause of Howe the distribution and infrastructure support that it needs to become a global lifestyle brand, the designer said.

Ritchey said that one of the first steps his company would take would be to increase Hause of Howe’s styles and SKUs of bottoms to create a more comprehensive offering. It promised to leave the label’s categories of T-shirts, knits and blazers untouched.

Seattle Pacific’s purchase of Hause of Howe is the most recent milestone in its strategy to provide more labels for specific sections of the fashion market, Ritchey said.

“It’s no secret that the retail channels are narrowing,” he said. “In order to have brands that are relevant to the customer, you have to segment brands for each distribution channel.” Hause of Howe will be Seattle Pacific’s fashion-forward men’s offering for better specialty stores and better department stores.

For the past two years, Seattle Pacific has been expanding its offerings from its main teen and juniors line, Union Bay. In 2004, it launched men’s line Saltaire with retail price points of $80–$150. In 2005, it debuted Union, a men’s and women’s denim line with retail price points of $150–$250. Sister Moon, a contemporary juniors line, was launched more than six months ago; its retail price points are $38–$68. Howe’s retail price points range from $49 to $400 for tailored blazers.

With Seattle Pacific absorbing Hause of Howe’s back-office duties, the label laid off three warehouse workers. Howe said his label was seeking jobs for these workers. Howe also plans to move from his Huntington Beach offices, which are in the same building as skateboard company Blitz Distribution. He said that the move should be completed by the end of the year, and the location of the new offices will either be in North Huntington Beach or Long Beach, Calif.

Hause of Howe won a Stuff magazine Style award in 2005. When the label started in 2001, it mixed rock ’n’ roll fashion with the traditional style of English country. Howe hoped to expand the look while maintaining its focus of updating traditional men’s silhouettes with fitted tailoring.