Iconix Sues Larry Hansel Clothing

New York–based Iconix Brand Group has filed suit against former Rampage licensee Larry Hansel Clothing for allegedly competing with the apparel giant while still under contract. Larry Hansel, founder of Larry Hansel Clothing, started Rampage in 1982 in Los Angeles and sold the brand to Iconix for $45.9 million in 2005. As part of the deal, Hansel retained the license to design and distribute Rampage until December 2008.

The suit, filed Feb. 3 in federal court in New York, claims that an August amendment to the license gave Hansel permission to ready his own line of juniors sportswear for Spring 2009—so long as he paid Iconix $1.9 million in royalties. According to the suit, Hansel has not paid the amount in full, making his new lines, Golden State and Grass, a violation of the agreement. Golden State, a young contemporary brand, launched for Fall 2008. Grass, originally a contemporary denim label Hansel invested in and later purchased outright in 2006, was repositioned for Spring 2009 as a juniors-related separates brand targeting the same 500 stores that bought Hansel’s Rampage styles.

California Apparel News talked to Hansel about his new projects in October. “Basically, I’m doing what I would do if I were launching Rampage in today’s market. Grass, as far as I’m concerned, is the brand-new Rampage repositioned for today’s world,” Hansel said.

Iconix is seeking $1 million in damages from Hansel and $1.5 million from Larry Hansel Clothing.

Iconix owns the Mossimo, Joe Boxer, Candie’s, Ocean Pacific, Bongo and Badgley Mischka brands. In October the company announced it had entered into a licensing agreement with ECI to exclusively manufacture Rampage sportswear and dresses starting with the Spring 2009 collection. In an earlier interview with California Apparel News, Hansel estimated Rampage did $50 million in business in 2008. Grass, he said, is expected to do $40 million in business in 2009. —Erin Barajas