4Whatitsworth, Jolna Team Up For New Venture

Alden Halpern and the Jolna brothers, Steve and Kerry, have known each other for more than a decade.

All three are major basketball fans. (A Wilt Chamberlain– autographed basketball is enshrined in Halpern’s office, and on the wall in Steve Jolna’s office hang several autographed basketball jerseys.) And all three are in the denim business.

The Jolnas are best known for their Bella Dahl and Pure Color labels and Halpern for his Tyte juniors brand, manufactured by parent company 4Whatitsworth Inc.

Earlier this year, the three joined forces to relaunch a young contemporary label called Rewash. Now they’ve decided to take it one step further, working together under the same roof, forming a partnership called Salt LLC.

Recently, the Jolnas moved their Jolna Design Group and its 30 employees from Tarzana, Calif., to Halpern’s warehouse-like building in Commerce, Calif., which was the former headquarters of juniors denim brand L.E.I. In2002, L.E.I. was bought by the Jones Apparel Group.

The merging of minds and offices is meant to take advantage of each company’s strengths. The Jolnas are strong in design. Halpern’s company, where he is the chief executive, is strong in sourcing, with deep ties in China, Bangladesh and other parts of the world.

“It has been a long time coming,” Steve Jolna said. “It’s just a ripe opportunity. We both believe product is king.”

Steve Jolna notes there are advantages to a premium-line company partnering with a more middle-of-the-road label company. Designs that are on the cutting edge eventually filter down to moderate price points a year or two later.

“We can take advantage of their being able to manufacture a product more efficiently and more timely,” Jolna added.

Halpern founded his company in 1993 and soon became an overseas sourcing pioneer. “We’ve positioned ourselves all over the world to turn quickly,” Halpern said.

Today 4Whatitsworth owns a 50 percent share of two factories outside of Shanghai, China, and another 50 percent share of a factory in Bangladesh set up to get around quota restrictions on Chinese-made apparel. Those quotas end this year.

Halpern not only presides over his own stable of labels, which include the misses brands Duplex and Beau, but he also manufactures private-label clothing for stores such as Kohl’s, Sears and Belk Department Stores. Private-label goods will make up about 40 percent of 4Whatitsworth’s expected $110 million in revenue this year, up from $71 million last year. The 2008 revenue projection includes the addition of the Pure Color and Rewash labels.

Contemporary at a price

Now that the two companies are under one roof, the plan calls for growing Pure Color’s distribution and relaunching Rewash in stores this November.

Rewash started out as a high-end denim label made in either Mexico or the United States, retailing last year for $228. But then Halpern and the Jolnas put their heads together and thought about lowering the price.

“What we decided to do was address the economy with this line,” said Halpern, who was once a salesman for Sasson Jeans, launched by Los Angeles denim king Paul Guez in the late 1970s.

Halpern told Jolna that his sourcing resources could help make the same pant that would retail for $69 to $89. Their partnership was born.

The jeans will be made of Japanese denim that has been distressed in some way or another or of Tencel denim. The pants will also have detailed washes that will fit into the label’s slogan, “Vintage Americana.” Other fabrics for bottoms include twills and brightly colored corduroy. Silhouettes will range from a skinny leg to a flair. A line of sweatshirts and knit tops will be added.

Starting next January, Halpern is doing a major billboard campaign in New York’s Times Square for both the Rewash and Tyte labels. Advertisements will also grace various New York City bus shelters.

Under the new partnership, other projects include launching a new label next year called 317, a contemporary brand with bottoms that will sell for around $50. Tops will be added.

And then there is the possibility of resurrecting the Bella Dahl label, sidelined about 1frac12; years ago after the Jolnas retrieved it from bankruptcy in late 2000. Originally, the Bella Dahl label was started by Jeffrey Lubell and his ex-wife, Kymberly, who went on to found True Religion.

The label’s original customer was a woman in her early 20s. But that woman has matured to her early 30s, is probably married with children and has different clothing tastes. The question for Halpern and the Jolnas is, “Do you cater to the young 30-yearold who knows the Bella Dahl label or go after a new, younger customer?”

No one has figured that out yet, but they will soon. “It’s like a fine wine we’re waiting to open,” Halpern said.