California Apparel News

Conceptual fashion designer Jared Gold announced this week he is negotiating the sale of his apparel company, Black Chandelier Inc. (BCI), to Salt Lake City–based diversified management firm Nexia Holdings Inc.

The publicly held Nexia (stock symbol: NXIA) has signed a binding letter of intent to acquire Gold’s newly formed corporation, which owns the licensing rights to apparel labels Jared Gold and Black Chandelier apparel.

Nexia Chief Executive Officer and Director Richard Surber said the acquisition is part of a greater effort to evolve into a business development company.

“The idea behind this acquisition is to allow Jared to maintain the artistic integrity he wants to maintain,” said Surber, who met Gold through mutual acquaintances almost a decade ago.

Part of the agreement calls for Nexia to distribute a $5 million company-share payout to Gold, whose assets include two trademarks, a large volume of digital patterns, sample shop equipment, silkscreens and a Web site.

Once the transaction is complete, BCI will be a wholly owned subsidiary of Nexia, Surber said.

“We’re looking forward to nurturing [BCI] by providing them with the necessary resources, such as capital, a staff of attorneys and accountants,” he added.

Gold launched his eponymous designer collection in 1997 and his moderately priced secondary line, Black Chandelier, four years later. The designer said he would eventually like to see his company go public.

“Being a part of a public company allows BCI to be more accessible to consumers,” Gold said.

Gold’s novel, deconstructed designs and moody styles have developed a cult following in major cities around the world. Many of Gold’s pieces—from subtle separates to elaborate ball gowns—have his signature screenprinted designs, including Victorian images and antique- and cryptic-looking calligraphy. Illustrator Edward Gorey is an often-cited influence for the designer’s collections.

During the past four years, Gold’s designer collection has had a string of successes in better department stores and specialty boutiques, including Barneys New York, Brown’s Focus in London and Beams in Tokyo.

Prior to the acquisition, Gold was involved in a partnership agreement with Nadine and John Maca, owners of California Concepts in Gardena, Calif., who provided Gold with financial backing and a design workshop.

Gold said the move to sell his company had to do with his desire to have full control over the design direction of the lines.

“Due to creative differences, we thought it would be best if Jared moved on, and we wish him lots of luck,” John Maca said.

California Concept’s initial projections for Gold’s lines were in the $3 million range, John Maca explained, but the company only booked a few hundred thousand dollars in orders.

Recently, Gold relocated to Salt Lake City to be closer to Nexia’s headquarters. Both collections will continue to be produced in Los Angeles until the company finds a production facility in Utah, the designer said.

Currently, Nexia is negotiating another acquisition with the owners of Arizona-based better denim label Beta Project.

In addition to his own collections, Gold will oversee the production of Beta Project once the deal is finalized, said Surber, who expects the acquisition to be completed within the next 30 days.

Black Chandelier’s Spring ’04 collection will bow in October during Los Angeles Fashion Week. Black Chandelier Inc. will produce either an installation or a fashion show during fashion week, Gold said. —Claudia Figueroa