2004 in Review: Year of Rebound

The economy rebounded in 2004—for some more than others.

The luxury market remained strong at retail, and the contemporary menswear category continued to build momentum on the West Coast with the introductions of new labels, new boutiques and new trade shows.

Business picked up at Los Angeles Market Week when the city’s two major fashion show producers, 7th on Sixth and Smashbox Studios, joined forces to present Mercedes-Benz Fashion Week at Smashbox Studios with an ever-expanding roster of designers on the runway.

Traffic increased at the massive MAGIC International, which consolidated its men’s and women’s shows into one location, and the concurrent satellite shows continued to grow as well.

It was also a year of acquisitions. CIT Group finalized its acquisition of HSBC’s factoring unit, Mossimo Inc. bought Modern Amusement, VF Corp. picked up Vans Inc., Warnaco bought Ocean Pacific, and a private investment group that includes Sun Capital Partners purchased retail chain Mervyn’s.

The news was mixed for California’s textile industry, which saw the closure of some large mills in Southern California, though the survivors picked up jobs statewide.

Meanwhile, across the state, developers began overhauling traditional shopping centers to set up “lifestyle” centers.

JANUARYImport/Export

Janet Labuda, head of the U.S. Customs Textile Enforcement and Operations Division, dubs 2004 as the “Year of Shenanigans,” referring to the lead up to the end of quotas in 2005 and some importers’ efforts to ship goods in an environment of diminishing quotas. Finance

CIT Group Inc. buys HSBC’s factoring unit, furthering CIT’s aggressive acquisition strategy. The financial services company purchased GE Commercial Services in 2003 and Heller Financial in 1999. Retail

Foothill Ranch, Calif.–based retail chain The Wet Seal announces plans to sell its 31-store tween chain, Zutopia.December retail sales were mixed, with better retailers such as Saks Inc. and Ann Taylor posting strong gains, while more mid-tier and moderate retailers such as Dillard’s and Sears post losses. Foothill Ranch, Calif.–based The Wet Seal agrees to pay $90,000 to settle a lawsuit brought by four garment workers who sewed Wet Seal clothing for contractor DT Sewing, in the first instance of a retailer being held liable for its contractors’ labor law violations under Assembly Bill 633. Boca Raton, Fla.–based Sun Capital Partners buys Ontario, Calif.–based retail chain Anchor Blue. Hurley International opens its first store inside Huntington Surf and Sport in Huntington Beach, Calif. The 660-square-foot space has its own entrance, as well as an opening into the store. Trade Shows

Alternative trade show Agenda announces plans to host its shows biannually at the California Market Center. Manufacturing

Santa Monica, Calif.–based Mossimo purchases Costa Mesa, Calif.–based Modern Amusement.Sam Kim is named president of the Apparel Contractors Alliance of California, an umbrella organization for California contracting groups. Kim is the owner of misses denim label Makers USA and is also a longtime board member of the Korean American Garment Industry Association. Los Angeles–based casual activewear line Hard Tail launches a line of denim for women, with plans to roll out a men’s line for Back-to-School. Van Nuys, Calif.–based Cherokee Inc. strikes a multiyear licensing deal with Mexican manufacturer Grupo Aviara SA de CV to take the Cherokee brand to Mexico. The American Apparel and Footwear Association holds its “Speed to Market” symposium on Jan. 30 at the downtown Los Angeles campus of the Fashion Institute of Design & Merchandising. Markets

Betsee Isenberg, owner of the 10 Eleven and Theory showrooms, and Kay Sides, co-owner with Isenberg of the Hatch showroom, announce plans to open a street-level showroom in The New Mart, called The Bank. The 15,000-square-foot space, which previously housed Manufacturers Bank, will house all three showrooms plus additional lines. The California Market Center unveils a newly renovated third floor, including upgraded lighting, an open atrium and renovated showrooms. The CMC also announces plans to open a “Street Couture” area on the 11th floor of the building. The California Market Center reports record attendance, and reps in the CMC and The New Mart report strong sales, at the Jan. 16–20 Los Angeles Summer ’04 Market. Real Estate

Hertz Investments, principal owner of the California Market Center, sells the historic Oviatt Building in downtown Los Angeles to a Beverly Hills–based investor for $9 million. Hollywood-based real estate firm CIM Group strikes a deal to buy the Hollywood & Highland shopping center from developer Trizec Properties for $200 million. Trizec Properties spent $650 million to build the center in late 2001. Events

British designer Alexander McQueen stages his first Los Angeles fashion show at the Chateau Marmont on Jan. 21. FEBRUARYRetail

Texas retail chain Gadzooks files for Chapter 11 bankruptcy protection. Los Angeles retailer Lisa Kline announces plans to expand her concept to two new stores, a men’s store in Malibu and an outlet store in Los Angeles. Both are expected to open in March. Retailers saw a post-Holiday boom in sales—the strongest one-month performance since September 2003. Veteran retailer Ron Herman announces plans to open a 1,000-square-foot store in the Malibu Country Mart in Malibu, Calif., in April. LF Sportswear, the Los Angeles–based maker of misses line Clio, announces plans to open retail stores beginning in March on tony Robertson Boulevard in Los Angeles. The stores will be called LF and will sell the company’s own label. Manufacturing

Los Angeles–based Tarrant Apparel Group closes its plants in Ajalpan, Mexico. Los Angeles–based Von Dutch Chief Executive Officer Tonny Sorenson reaches a settlement for an undisclosed amount with company President Michael Cassel over ownership of the $33 million brand. A Los Angeles District Court judge rules that Roxy brand owner Quiksilver must coexist with Kymsta Corp., which produces the Roxywear label. The court rules that Quiksilver owns the Roxy label and Kymsta could continue using the Roxywear brand.Technology

East Coast technology firm Gerber Technology Inc. moves its West Coast headquarters from Commerce, Calif., to Cerritos, Calif., and hires new executives Rodney Harrelson, Los Angeles deputy regional director, and Malcolm Gullish, senior account executive.

A California senator proposes a bill that would attach privacy standards to radio frequency identification (RFID) tags. Senate Bill 1843 would ensure that companies using RFID technology disclose such information to the public. Wal-Mart Stores announces plans to institute RFID for its top 100 accounts by 2005. Fashion Weeks

IMG’s Mercedes-Benz Shows L.A. and Smashbox Fashion Week merge to form Mercedes-Benz Fashion Week at Smashbox Studios, moving the Los Angeles Fashion Week event from downtown Los Angeles to nearby Culver City.Real Estate

The Huntington Beach Mall in Huntington Beach, Calif., is scheduled for demolition and plans are announced to build the Bella Terra lifestyle center in 2005.The Inland Center in San Bernadino, Calif., is sold to an investment group led by Santa Monica, Calif.–based Macerich Co. for $63.3 million.Trade Shows

MAGIC International gets off to a slow start—thanks to torrential rains in Las Vegas that delay many flights coming into the city. But exhibitors and retailers alike are optimistic that business will pick up in 2004. MARCHRetail

Pacific Sunwear announces plans to open 110 stores in 2004 following $1.04 billion in sales for the Anaheim, Calif.–based retailer in fiscal year 2003. Rock ’n’ roll apparel maker Dragonfly Clothing announces plans to open a 1,800-square-foot boutique on Los Angeles’ trendy Melrose Avenue. This is the second store for the Fullerton, Calif., company, which opened a 2,000-square-foot store in London in 2003. BCBG Max Azria opens a store in the chic Melrose Heights section of Melrose Avenue in Los Angeles. This is the sixth Los Angeles–area store for the Vernon, Calif.–based company. Fornarina, the Italian shoe and apparel company with U.S. headquarters in Los Angeles, opens a new store in Las Vegas at Mandalay Place. This is one of several store openings planned by the company this year along with stores in Stockholm, Madrid, Rome, Moscow and Manila. The Las Vegas store is the second U.S. store for the company, which has a flagship store on Melrose Avenue in Los Angeles. Fifi Collection heads to the Glendale Galleria in Glendale, Calif., where the 5-year-old contemporary label opens its first retail store. Confident consumers helped boost retail sales in February, particularly for specialty retailers like Bebe Stores and Chico’s FAS. Manufacturing

Richard Tyler relaunches his bridge-priced eveningwear line Eve atFashionCenterDallas, the new apparel wholesale mart in Dallas. The venerable designer also receives a fashion achievement award from the Dallas fashion community on March 26. Arleta, Calif.–based Juicy Couture, one of New York–based Liz Claiborne Inc.’s contemporary labels, announces plans to launch a swim collection at the Miami Swim Show in July. Juicy has struck a partnership deal with Swimwear Anywear Inc., which will produce the collection. The California Supreme Court rejects Mossimo’s petition to appeal a lower-court ruling in Cherokee’s favor regarding a finder’s fee agreement between the two companies. The dispute stems from Cherokee’s assistance in securing Mossimo’s licensing deal with Target Corp. Retailer American Rag CIE is taking its licensed American Rag brand nationwide, with the rollout of three to five new stores by the end of 2005. American Rag is produced by Los Angeles–based Tarrant Apparel Group. Technology

Target Corp. follows Wal-Mart’s lead and announces plans to adopt radio frequency identification (RFID) technology to trade its merchandise. The Minneapolis-based retailer tells its top vendors to be RFID-ready by Spring 2005. Labor

The Hotel Employees and Restaurant Employees International Union (HERE) and UNITE, the clothing, textile and laundry union, unanimously agree to merge, forming a new union representing 440,000 active members and more than 400,000 retirees throughout North America. Trade Shows

Sunny weather and clear-cut trends keep the aisles buzzing at Fashion Coterie in New York. Real Estate

A group of developers announces plans to build a 1 million-square-foot mart in Las Vegas to house Chinese apparel manufacturers’ showrooms. Import/Export

Imported sweaters receive close scrutiny at U.S. ports as customs inspectors check for transshipments on knit sweaters coming in from overseas.Retail

Tadashi founder Tadashi Shoji opens his first boutique in Southern California’s South Coast Plaza. The Vernon, Calif.–based company is planning to open four more boutiques over the next five to 10 years. Events

Sixties fashion icon Peggy Moffitt speaks to students and fashion fans at an Otis College of Art and Design event on March 25 in the California Market Center. Moffitt is best known as the kohl-eyed model for Rudy Gernreich. APRILReal Estate

The Del Amo Fashion Center mall in Torrance, Calif., announces plans to undergo a $200 million makeover, which will include a Bloomingdale’s, high-end retail and restaurants, a cinema complex and possibly a bowling alley. A new retail mart in the Los Angeles Fashion District, 1000 Maple Center, begins construction. The 15,000-square-foot center will house about 65 shops. Manufacturing

Tarrant Apparel Group announces plans to shift its focus from Mexico production to its own private label brands through its subsidiary Private Brands Inc., whose holdings include American Rag, a licensed line with California retailer American Rag CIE, junior denim label No Jeans and Seven7, which the company sells to Express. BCBG Max Azria Chief Executive Max Azria opens an entertainment division. The first project is “The Ten Commandments: A Musical,” which will debut in September. Frankie B. receives the Moss Adams Fashion Innovator Award at the California Market Center Fall ’04 runway show at the Orpheum Theatre. Junior denim maker Bubblegum U.S.A. launches a contemporary denim line called Tylerskye by Villand. Louis Verdad, Susanna Mercedes and Cantu & Castillo are honored at a gala fund-raiser, called Latin Elegance, at the Museum of Latin American Art in Long Beach, Calif., on April 3.Retail

Hoffman, Ill.–based retailer Sears, Roebuck and Co. announces plans to break into the big-box mega-retailer market with the opening of a 180,000-square-foot Sears Grand store, which will carry everything from fashion and home deacute;cor to food and power tools. The store is expected to open by November. Voters in Inglewood, Calif., vote down Wal-Mart’s proposal to build one of its Supercenters in the Southern California community. The Arkansas–based retailer argues that its Supercenter would provide jobs and expanded shopping choices, but opponents to the measure say the giant store, which sells groceries, household products, clothing and drugs, would crush existing small businesses. March retail sales continued to be strong for many retailers, from those selling luxury products to off-pricers such asRoss Stores. Los Angeles–based blank T-shirt and underwear maker American Apparel announces plans to make a wider commitment to its new retail division by opening 14 more stores by the end of the year. The Lab Anti-Mall in Costa Mesa, Calif., shifts its focus slightly to provide an alternative to nearby upscale shopping center South Coast Plaza. The Lab announces plans to bring in higher-end boutiques selling youthful, alternative and contemporary merchandise. Retailer Shauna Stein opens her newly relocated store, previously called On Beverly. The new store, now called On Sunset, is located on Sunset Boulevard in West Hollywood. Import/Export

The Central American Free Trade Agreement is likely to be further delayed until after the presidential election in November. The measure was expected to be approved by Congress in the spring, but the war in Iraq tabled the agreement. Government

The California Assembly overwhelmingly passes Senate Bill 899, which promises to reform the state’s costly workers’ compensation system. MAY

Retail

April showers and cool weather dampened retail sales, although high-end and specialty stores like Neiman Marcus and Chico’s FAS continued to post gains. Real Estate

Metropole Realty Advisors and Heller Properties, two New York–based real estate companies, purchase a key Rodeo Drive property in Beverly Hills for $20 million. The 7,500-square-foot-property at 325-329 N. Rodeo Dr., houses the Giorgio and BCBG Max Azria boutiques. Manufacturing

North Carolina–based manufacturing giant VF Corp. purchases Santa Fe Springs, Calif.–based footwear and active apparel company Vans Inc. for approximately $396 million. SweatX, the Los Angeles–based apparel factory promoted as a socially conscious business, shuts its doors after less than three years in business. SweatX was funded by a venture fund set up by Ben and Jerry’s ice cream brand co-founder Ben Cohen.Technology

Los Angeles–based technology and CAD/CAM company Tukatech forms a partnership between its TukaWeb division and Memphis, Tenn.–based FedEx Corp. Tukatech will outfit FedEx’s sorting facilities in Asia with its TukaJet inkjet plotters. Garment makers can upload patterns and markers through TukaWeb, the company’s Internet–based design center. The patterns and markers will be sent to FedEx facilities in Asia, where they will be printed and distributed to the factories contracted by the apparel companies.Import/Export

Janet Labuda, director of the Textile Enforcement and Operations division of the U.S Customs and Border Protection, fields questions from Los Angeles apparel executives at a California Fashion Association meeting on May 18. Freight

California truckers end a week-long strike over escalating fuel prices. Business slowed at the Port of Oakland, Calif., the state’s fourth-largest port, when the truckers staged their protest. JUNEImport/Export

The European Union is levying a 7 percent tariff on 44 categories of U.S.-made goods in retaliation for an export subsidy given to U.S. manufacturers that the EU claims is unfair. The tariff is expected to rise to 8 percent later in the year. Retail

Spanish retailer Zara announces a two-store rollout in Southern California with the opening of a 10,000-square-foot store at South Coast Plaza in Costa Mesa. Another store is planned for the Third Street Promenade in Santa Monica.Favorable employment figures helped boost retail sales despite economists’ ongoing worries that still-high gas prices will begin to affect consumer spending. Luxury and high-end specialty stores, including Chico’s FAS and Nordstrom, continued to post gains. Manufacturing

Juicy Couture dives into retail with the announcement of a planned store at the Caesars Palace Forum Shops in Las Vegas. This will be the first store for the Arleta, Calif.–based company owned by New York–based Liz Claiborne Inc. Tarrant Apparel Group acquires a 75 percent ownership stake in men’s and boys’ streetwear brand Gear7, in a joint venture with Denver–based BrandHouse7. Gear7 sells in Kmart stores.Textiles

Los Angeles–based textile converter H. Greenblatt & Co. is forced into Chapter 7 involuntary bankruptcy by some of its creditors, who say they are owed as much as $24 million. Markets

Optimistic spending continues at the Fall II/ Holiday market in Los Angeles. JULY

Retail

Prada unveils its second Rem Koolhaas–designed retail store in Beverly Hills. The Rodeo Drive boutique has futuristic details like the Italian label’s New York store, but the California store has its own distinct look including no storefront, displays embedded in the floor in the entry and a lift wall that rises from the basement when the store is closed. Fresno, Calif.–based retailer Gottchalks announces plans to test a new concept store in the River Park section of Fresno in Spring 2005. The 100,000-square-foot store will carry upscale apparel, cosmetics, fragrances and footwear. Retail sales were anemic in June for many retailers after five months of gains. Rising oil prices, credit card debt and healthcare costs are blamed for taking a bite out of retail spending.Trade shows

New York–based show producer ENK inks a deal with contemporary streetwear show To Be Confirmed to co-produce its New York show. (The deal does not extend to TBC’s London and Tokyo shows.) Real Estate

Staples Center developer Anschutz Entertainment Group announces plans to build a $1 billion hotel and entertainment project, including a concert theater and music club, in downtown Los Angeles near the Staples Center and just west of the Fashion District. Manufacturing

New York–based Warnaco Group purchases Ocean Pacific Apparel Company for about $41 million. West Coast designers Trina Turk, Judith Ripka and Chrome Hearts designer Laurie Stark are among the 21 inductees into the Council of Fashion Designers of America in New York for 2004.Ports

A strike at the ports of Long Beach, Calif., and Los Angeles is averted when clerical workers and shippers negotiate an agreement that will allow shippers to implement new technology letting customers enter and track shipping information, while still guaranteeing job security, a pay increase and an improved retirement package for clerical workers. Textiles

Wilmington, Del.–based fiber and chemical company DuPont signs eight international licenses for its newly launched renewable resource polymer Sorona. Two of the licenses are in China and a third is anticipated by the end of the year. The licensing agreement gives licensees access to proprietary technology to produce Sorona. Markets

The California Market Center begins sprucing up a currently vacant area on the second floor of the A building previously known as the mezzanine. The renovation will add more than 20,000 square feet of permanent showroom space to complement the existing updated and better apparel showrooms on the floor. AUGUST

Retail

Quiksilver announces plans to test two new concept stores at South Coast Plaza in Costa Mesa, Calif. The company’s new Roxy store will feature a more updated, clean look than its previous teen-focused design and the new Quiksilver store will carry only men’s merchandise and serve as a brand laboratory for the company to test new design ideas for menswear. Lucky Brand Jeans founders Gene Montesano and Barry Perlman partner with New York–based denim designer Eric Goldstein to open a 1,000-square-foot retail store called Jean Show in New York’s Meatpacking District. The store sells men’s and women’s jeans, T-shirts, custom-made leather jackets, handbags and jewelry. Vernon, Calif.–based Lucky Brand is a division of New York–based Liz Claiborne. Minneapolis-based Target Corp. sells its Hayward, Calif.–based unit Mervyn’s to a private investment group for $1.2 billion. The investment group includes Sun Capital Partners Inc., Cerberus Capital Management LP and Lubert-Adler and Klaff Partners LP. The deal includes 257 Mervyn’s stores in 13 states. The first Halston boutique in more than two decades opens in Los Angeles in the space that housed Bradley Bayou’s atelier until the Los Angeles designer was tapped to head up the new Halston label, Bradley Bayou for Halston.Retailers in the luxury and specialty store sectors fared best in July, with others catering to the moderate and discount markets reporting lagging monthly sales. New York designer Victor Alfaro resigns as creative director from The Wet Seal, less than one year after the Foothill Ranch, Calif., retailer hired him to help turn the beleaguered juniors retailer into a fashion leader.Los Angeles–based retail chain Windsor announces plans to build two 5,500-square-foot stores in Chicago, a 5,000-square-foot store in Milwaukee and a 5,200-square-foot store in Dallas in 2004. A third Chicago store is planned for 2005. Ports

The International Longshore and Warehouse Union, which represents dockworkers at California’s ports, agrees to a new hiring process that will bring 5,000 new casual workers to the docks at the ports of Los Angeles and Long Beach, which have been backlogged with cargo ships as the peak season begins. Textiles

The Textile Association of Los Angeles turns 60 and celebrates with a party at the California Market Center that draws members, friends and industry well-wishers. Trade shows

Menswear buyers have three venues to shop at the inaugural Los Angeles Men’s Fashion Week, which encompasses the Westcoast Exclusive in Los Angeles’ Westwood neighborhood, Project Global Trade Show in the Cooper Design Space and Agenda in the California Market Center, both in downtown Los Angeles. After a dismal turnout from buyers, Action Girl, a relatively new trade show focusing on young, female skateboarders and surfers, shutters the show. Manufacturing

Joie Rucker, founder of Los Angeles–based contemporary label Joie, leaves the company to pursue other design opportunities. She has sold her company to Serge Azria, brother of BCBG founder Max Azria, for $1.4 million, with payments over a two-year period. Government

The Los Angeles City Council approves the “Supercenter Ordinance,” which demands that some big-box retailers conduct an economic impact report forecasting their effect on a neighborhood’s small businesses and jobs before moving in. The California Labor and Workforce Development Agency increases its investigations of illegal garment contractors with the help of Victoria Bradshaw, secretary of the California Labor and Workforce Development Agency, and Deputy Secretary Jose Millan. Markets

Buyers turn out to buy Holiday and Resort merchandise at the Aug. 13–17 Los Angeles Market. The week is typically one of the smaller markets, but reps are encouraged by retailers’ optimism about the future and say many were placing on-season orders rather than relying on last-minute fill-in merchandise. Real Estate

The historic Eastern Columbia Building is the latest loft conversion project for downtown Los Angeles. Developer The Kor Group announces plans to convert the 13-story 1930 building to lofts by the end of 2005. SEPTEMBERTrade Shows

MAGIC International bows all its shows under one roof at the Las Vegas Convention Center in a new configuration that pays off in attendance as more than 3,300 exhibitors set up booths. Vendors and buyers say high retailer confidence made for robust business at the Action Sports Retailer Trade Expo in San Diego.Organizers of New York trade show Industry 212 postpone the show indefinitely so that producers can “reshape” the show and show dates can be adjusted. Hurricane Ivan contributes to a decrease in traffic but not enough to dampen sales, according to reps at the Sept. 17–19 run of Surf Expo in Orlando, Fla.Fashion Weeks

San Francisco Fashion Week bows at the Palace of Fine Arts with a lineup that includes San Francisco designers, Los Angeles denim maker Rock & Republic, New York lingerie line Loungewear Betty and Italian label Fornarina.Manufacturers

XOXO founder Greg Fiene gears up to re-enter the juniors market with a new label called Yank, in joint venture with Los Angeles–based As Is Clothing. Adriano Goldschmied parts ways with Koos Manufacturing, the company that produces Goldschmied’s AG Jeans. The designer plans to launch his own line of sportswear and denim for Fall 2005.

A Los Angeles court rules that Peter Koral, owner of L’Koral Inc., which manufactures Seven for All Mankind jeans, must pay his former partners Jerome Dahan and Michael Glasser $55.5 million for their share of the business and profits for the denim brand founded in 2000. Vernon, Calif.–based Laundry by Shelli Segal announces it is getting into the bridal business with a new collection of bridesmaids dresses. The collection is part of a partnership with Andy Buchbinder and Brett Levkoff, currently with Brett Luvkoff Inc.Retail

Specialty stores and luxury retailers continued to post strong sales in August, but many mid-tier and moderate retailers posted negative numbers. The founder of Hot Topic, Orv Madden, announces a new chain store concept, called Metropark. The first contemporary, denim-driven store will open in Glendale, Calif., in October. Import/Export

A group of Los Angeles manufacturers makes plans to meet with government officials in Mexico as part of the group’s efforts to reinstate a tariff preference program under the North American Free Trade Agreement. The Tariff Protection Level 3 was created to cover apparel manufactured under the 807 program, or apparel manufactured from imported fabric cut in the United States, assembled in Mexico and brought back to the United States duty-free. OCTOBERFashion Weeks

Independent fashion show producer P. Ka Bu lands Toyota’s Scion division as a sponsor for its Los Angeles Fashion Week shows, which will feature 10 designers’ shows over two nights in downtown Los Angeles.

Manufacturers

Los Angeles–based Aris Industries, which once counted XOXO and Baby Phat among its brands, files for Chapter 11 bankruptcy protection. Last year, the company ended its licensing agreement with Baby Phat and sold off several brands, including XOXO, Lola and Fragile. The company still holds the rights to the Members Only brand. Trade Shows

“Spring” is the buzz word at the Designers & Agents and Fashion Coterie trade shows in New York as buyers crowd the aisles on the hunt for new Spring trends. Ports

For the first time in two years, container ships are parked off the coast of Huntington Beach, Calif., in Orange County because of congestion at the ports of Long Beach and Los Angeles. Retail

Netherlands-based retailer G-Star opens a 2,350-square-foot boutique in Los Angeles’ Melrose Heights neighborhood. Hurricanes on the Eastern Seaboard doused retail sales for many companies in September, but the luxury market continued to report gains. Textiles

California State University, Los Angeles announces plans for a new continuing education program for textile workers. The Textile: Production and Management certificate program will feature technical courses in quality control, color analysis and textile plant management and be conducted at The New Mart and on site at local textile mills. Neither rain nor fast-approaching fashion and market weeks keep designers and piece-goods buyers from turning out at the Los Angeles International Textile Show at the California Market Center.

Real Estate

Mall developer Westfield Group announces plans for a $113 million renovation of the Westfield Shoppingtown Santa Anita in Southern California. The mall is adjacent to the Santa Anita Racetrack, near where developer Rick Caruso plans to build a luxury shopping center The California Market Center and the Gerry Building are put on the block. Negotiations begin with Jamison Partners, a Los Angeles real estate company, to purchase the CMC. Markets

Retailers crowd the lobbies, elevators and halls of the California Market Center during the Oct. 11–14 Los Angeles Majors Market. A group of sales representatives for contemporary manufacturers opens the San Francisco Fashion Collective permanent showroom space, across the street from the Concourse Exhibition Center, where the San Francisco Fashion Market is held. NOVEMBER

Markets

Traffic is heavy and sales are brisk at the Oct. 29–Nov. 2 run of Los Angeles Market Week, despite the uncertainty during the last days of the presidential election and the ongoing financial strain caused by rising fuel costs. Contemporary and designer representatives, including Los Angeles showroom The Bank and New York–based trade show Designers & Agents, announce plans to shift Fall ’05 market dates three weeks earlier to create the Los Angeles Contemporary Market, which will run March 17–22. Organizers say the new dates will help draw more international resources and buyers to market. Ports

Seven shipping lines announce plans to institute a congestion surcharge on cargo destined for the ports of Long Beach and Los Angeles in the wake of a week-long backlog at Southern California ports. A new entity, called PierPass Inc., reveals a plan to ease congestion at the ports of Los Angeles and Long Beach by instituting five off-peak shifts at the ports and a surcharge on goods moved during peak hours. Manufacturing

Healthcare measure Proposition 72, which would require medium-sized and large companies to provide healthcare coverage to their employees and their dependents, is defeated in the polls on Nov. 2. Cambodia, the newest member of the World Trade Association and 10th-largest supplier of apparel to the United States, hopes to benefit from restrictions on Chinese imports to the United States. San Francisco–based Byer California announces it will shutter the Los Angeles–based production sewing department of its Alfred Paquette division in January. The company is providing severance packages to the facilities’ 169 employees and will continue their healthcare coverage through mid-2005. Los Angeles–based Apparel Ventures purchases the assets of Waterfront Design Group LLC, a Los Angeles swimwear company that has the license to make Rampage swimwear. Retail

Brisbane, Calif.–based Bebe Stores vacates its design studios at the Cooper Design Space in downtown Los Angeles and moves into its own building in Los Angeles’ Century City neighborhood. Luxury and specialty stores continued to report hot retail sales for October, while former high-flyer Hot Topic stumbled as its rock ’n’ roll–inspired merchandise mix fails to register with buyers looking for preppy, feminine fashions. Santa Ana, Calif.–based contemporary menswear designer Jade Howe opens his first retail store for his Howe collection—in his 2,000-square-foot home in the Artists Village in Santa Ana. Howe Homme will be open by appointment on the weekends. Eddie Rodriguez, the former president and creative director of menswear line Wilke-Rodriguez, opens a 3,400-square-foot men’s and women’s boutique in the Beverly Center in Los Angeles. In a surprise move, Sears Roebuck and Co. and Kmart merge, creating the third-largest department store chain with combined revenues of $55 billion, 2,350 full-line stores and 1,100 specialty stores. The combined company will be known as Sears Holdings and each store will retain its own brand identity. New York–based chain store Dress Barn signs a deal to acquire Minnesota–based specialty store chain Maurices, a Midwestern retailer with 464 stores in 38 states. New Albany, Ohio–based specialty store chain Abercrombie & Fitch agrees to pay $40 million to settle a class action suit filed by Latino, African American and Asian applicants and employees who said the retailer practiced discrimination in hiring and promoting employees. Holiday retail sales start on a blockbuster note, with strong “Black Friday” sales on the Friday after Thanksgiving, but analysts question whether the winner’s streak will last through the entire season. Real Estate

MJW Investments puts portions of Santee Court, its 780,000-square-foot residential village in the Los Angeles Fashion District, up for sale. The company is still proceeding with the construction of a new 64-condominium portion of Santee Court, which is slated for completion by the end of the year. Trade shows

New York–based contemporary menswear show, Project Global Trade Show announces plans to join the lineup in Las Vegas. The show will lease space from upscale menswear show The Exclusive at the Mandalay Bay Convention Center.

Import/Export

The Central American Free Trade Agreement, which would eliminat quotas and duties on many apparel goods imported from Guatemala, Honduras, Nicaragua, Cost Rica, El Salvador and possibly the Dominican Republic, is further postponed until spring of 2005.Technology

The Fashion Institute of Design & Merchandising in Los Angeles plays host to Apparel magazine’s Tech Conference 2004, which features 25 seminars and draws top companies including Gerber Technology, Lectra North America, BCBG Max Azria, Levi Strauss & Co., Sears, Roebuck and Co. and The Wet Seal. Textiles

Vernon, Calif.–based Kronfli Spundale Mills The show will lease space from upscale menswear show The Exclusive shuts down its dyehouse two months after filing for Chapter 11 bankruptcy protection, and Los Angeles–based Tissurama Industries closes its doors. DECEMBERPorts

A major Hong Kong firm, Hutchinson Port Holdings, announces plans to build a new port south of Ensenada in Mexico’s Baja California region to compete with the jammed port complex in the Los Angeles/Long Beach area. Textiles

Los Angeles textile company L.A. Printex Industries files eight lawsuits alleging that a raft of retailers, manufacturers and textile converters have used its copyrighted fabric designs. Los Angeles designer Ahneva Hilson, whose apparel line Ahneva Ahneva features African-inspired details, takes on an expanded role as a distributor of African textiles in an effort to help the African textile industry while infusing new looks into the U.S. fashion market. Labor

The California Department of Industrial Relations finds a host of labor law violations at local contractors during a three-day surprise sweep of Los Angeles garment shops. The DIR says it discovered nine companies operating without mandatory licenses and assesses more than $1 million in fines.

After being vacant for nearly one year, the position of state Labor Commissioner is filled by Donna Dell, an executive working for a nationwide janitorial company, on Dec. 13. Retail

Retailers reported mixed reviews of November retail sales, as strong “Black Friday” sales tapered off throughout the rest of the Thanksgiving weekend, which is typically the start of the Holiday shopping season and an indication of the strength of the entire season. Los Angeles–based Guess? Inc. opens its new contemporary concept store, Marciano, in Los Angeles, Paramus, N.J., Dallas and McAllen, Texas. Forever 21 Inc. settles a lawsuit with garment workers in California Superior Court, effectively ending a three-year-long national boycott against the popular Los Angeles–based retailer and resolving a series of lawsuits lobbied between the two sides. Manufacturing

There may be some changes in store next year for Assembly Bill 633, according to Jose Millan, deputy secretary of the state Labor and Workforce Development Agency, who speaks to a group of apparel industry executives at a Dec. 15 panel discussion at the California Market Center organized by the California Fashion Association. IN MEMORYbull; Stuart Buchalter of Buchalter, Nemer, Fields & Youngerbull; Jim Osterman, third-generation textile executive and representative for Linen L.A./Osterman Textiles bull; Apparel and textile transportation and warehousing executive Jack Stein, founder of J-Wil and Roman Services/Rolo Transportation, and vice president of Operon Distributionbull; Sandy Chrysler, fashion designer and founder of Sandy Chrysler Collectionsbull; Barry Fogel, longtime industry executive and owner of the Barry Fogel Off-Price Buying Officebull; Stephen McClelland, industry consultant and longtime sales rep for such brands as Catalina and Jordache Enterprisesbull; Marc Wizmer, partner and vice president of contemporary apparel maker Love Amourbull; Retailer Marcia Israel-Curley, founder of retail chain Judy’s