2005 Year in Review

There was more of everything in 2005.

The apparel industry saw more imports than ever coming in duty free from China—until the midyear implementation of several safeguard measures, or temporary quotas, stemmed the tide.

Federated Department Stores merged with May Co. to create the largest U.S. department store chain, with nearly 1,000 locations in 49 states.

In Los Angeles, the city’s toniest shopping districts welcomed a new crop of boutiques including well-known international brands as well as local labels and retailers.

Sadly, this was a year filled with tragic natural disasters—the tsunami in South Asia, hurricanes Katrina and Rita, mudslides in Guatemala and a devastating earthquake in Pakistan.

But it was also a year of great generosity as members of the industry stepped up to raise awareness, supplies and money for those in need.

In this issue, California Apparel News takes a look back at some of the headline stories of 2005.

JANUARY

Import/Export

The end of quotas on Chinese goods Dec. 31, 2004, spurred a host of questions about how it would affect many U.S. businesses, as customs officials anticipated confusion among U.S. importers. Philanthropy

California apparel manufacturers and retailers donated clothing, supplies and funds to relief organizations helping the victims of the late-December tsunami in the Indian Ocean that killed about 150,000 people. Manufacturing

New York–based Liz Claiborne Inc. purchased Los Angeles–based C&C California for more than $28 million, adding another California company to Claiborne’s mix, which includes Lucky Brand Jeans, Laundry by Shelli Segal and Juicy Couture. Los Angeles–based Tarrant Apparel Group signed an exclusive deal for Beyonceacute; Knowles’ planned contemporary label, House of Dereacute;on. Tarrant also landed the license to make, produce and distribute jeans and apparel under the Jessica Simpson label. Los Angeles–based designer Jasmine Shokrian and Newport Beach, Calif.–based contemporary brand Trovata were among the winners of an Ecco Domani Fashion Foundation Award, which bestows a $25,000 grant to produce a fashion show at New York Fashion Week in February. Retail

Holiday shoppers waited until the last minute to save December retail sales figures, according to retailers who reported a late-December uptick in sales resulting in a 2.7 percent gain over last year, according to the International Council of Shopping Centers. Los Angeles manufacturer and retailer Da-Rue of California Inc. purchased the nine-store retail chain Ames Ladies Wear for $622,500, more than a year after Ames filed for Chapter 11 bankruptcy protection. Trade Shows ENK International, producers of Fashion Coterie in New York and Brighte Cos. in Los Angeles, announced plans to join the newly formed Los Angeles Contemporary Market, scheduled for March 17–22, two weeks before the regularly scheduled Los Angeles Market Week, set for April 8–12. Juniors manufacturers and those ready to show Back-to-School merchandise were among the winners at the Jan. 7–9 run of Surf Expo in Orlando, Fla. Boutique buyers from Northwestern states braved a deluge of rain to attend the Jan. 8–11 run of Fashion Market San Francisco, organized by the Golden Gate Apparel Association. The show drew 230 exhibitors and 1,300 buyers. Los Angeles Market Week, held Jan. 14–18, drew heavy traffic from retailers, who were buying cautiously after a roller-coaster Holiday sales season. Many exhibitors at the Jan. 14–18 run of the Action Sports Retailer Trade Expo opted to preview Fall collections in addition to Summer, which is typically the focus of the show. The Imprinted Sportswear Show in Long Beach, Calif., drew 460 exhibitors and 13,000 attendees, which represented a 10 percent increase in attendance over the previous year. Hong Kong Fashion Week’s Jan. 18–21 run drew several U.S. manufacturers in search of new sourcing options after the end of quotas on Chinese-made goods at the beginning of the year. FEBRUARY

Education

The Fashion Institute of Design & Merchandising teamed with the Norman Lear Center at the University of Southern California’s Annenberg School for Communication to host “Ready to Share: Fashion and the Ownership of Creativity,” a daylong conference at USC on intellectual property and the origins of inspiration. Retail

Shoppers braved winter storms in much of the country, providing a sunny start to the year’s retail sales, according to the International Council of Shopping Centers, which recorded a 2.2 percent increase in January sales over the previous year. Los Angeles–based retail chain Forever 21 purchased Texas-based teen retailer Gadzooks for $33 million. Gadzooks sought Chapter 11 bankruptcy protection in 2004. Forever 21 executives said the company planned to continue operating Gadzooks as a separate division. Nordstrom announced plans to open a 144,000-square-foot store at The Oaks shopping center in Thousand Oaks, Calif., in 2008. Italian designer Roberto Cavalli opened a boutique on Rodeo Drive in Beverly Hills with a star-studded party that included guests Cindy Crawford, Salma Hayek, Mary J. Blige and Mischa Barton. Specialty shoe and apparel retailer Diavolina announced plans to reopen in March on Robertson Boulevard in Los Angeles. The boutique closed its La Brea Avenue location in 2004. Trade Shows

Traffic and energy were buzzing in Las Vegas as trade show giant MAGIC Marketplace opened Feb. 14 with a new satellite show, New York–based Project Global Trade Show. Project joined a field of satellite shows that includes ENK’s Brighte Cos., The Exclusive, Pool, Women’s Wear in Nevada, ASAP Global Sourcing Show and the Off-Price Specialist Show. MARCH

Retail

Cincinnati-based Federated Department Stores Inc. purchased St. Louis–based May Department Stores Co. for $11 billion in equity. The company announced no specific plans for its West Coast stores, although California is home to the 113 Federated-owned stores and 47 May-owned stores—the highest concentration of the two stores in the nation. Los Angeles independent boutique Siren & Sailors announced plans to move from its 700-square-foot store near Sunset Boulevard in the city’s edgy Echo Park neighborhood to a new 2,000-square-foot location next door and open an art and home furnishings store, called All Aboard, in the original space. Gray skies didn’t dampen February retail sales, which grew by 4.9 percent over the previous year, according to the International Council of Shopping Centers. Marc Jacobs opened two stores on Melrose Avenue in Los Angeles with a star-studded gala that drew such celebrities as Francis Ford Coppola, Hilary Duff and Winona Ryder. Retailer Odessa Bowden, owner of Nobody Jones in Los Angeles’ Leimert Park neighborhood, opened a second boutique on Pico Boulevard. Punk rock–themed retail pioneer Retail Slut shuttered its store after 22 years on Melrose Avenue. Portland, Ore.–based Adidas United States opened an Adidas Originals store at the corner of Melrose and Fairfax avenues in Los Angeles. Barneys New York hosted a grand-opening party for its Barneys New York Co-Op store in South Coast Plaza in Costa Mesa, Calif. Italian label Marni opened a 2,100-square-foot boutique on Melrose Avenue in Los Angeles. Trade Shows

Contemporary trade show Fashion Coterie drew 15,000 retailers to its Feb. 26–March 1 run at the Show Piers in New York. Coterie ran concurrently with Designers & Agents at the Starret-Lehigh Building, which saw retailer attendance grow 46 percent to 2,625, and The Train, which drew 2,377 visitors to its second showing in the city’s Chelsea district.

“Business first” was the motto at the March 8–9 Action Sports Retailer Back-to-School show at the Hilton Waterfront Beach Resort in Huntington Beach, Calif. The timing of the show, which is a scaled-down version of ASR’s action-packed January and September shows, allows for last-minute Fall buying.

Lingerie trade show Lingerie Americas saw record attendance at its March 6–8 run at the Altman and Metropolitan buildings in New York, where 2,475 visitors turned out, representing a 100 percent increase in attendance over the previous March and a 10 percent increase from a show in August. Los Angeles Market Week organizers announced plans to permanently move the market up by two weeks after the city hosted its first Los Angeles Contemporary Market, March 17–22. Los Angeles Fashion Week, which follows the regular trade show calendar, is scheduled for April. Going forward, organizers said, the two markets will be combined. Radio-Frequency Identification Technology and the Central America Free Trade Agreement were the main focus at the Material World and Technology Solutions trade shows held March 16–18 in Miami Beach, Fla. APRIL

Manufacturing

Premium-denim brands including Silver jeans, Lucky Brand Jeans and Mavi experimented with even higher-end denim lines. Serfontaine released a style made with pure-silver filaments that wholesales for $400, and new line Stronghold released hand-dyed Japanese selvage jeans wholesale priced at $500. Vernon, Calif.–based BCBG Max Azria struck a deal with Sears Holding Co. that gave the retailer exclusive distribution rights to its Parallel contemporary division. The label’s Spring 2005 line is carried in Sears’ 150 stores and on the company’s Web site. Under pressure from industry groups, the Bush administration considered restricting imports of three types of apparel coming from China, following a flood of imports from the country after the expiration of quotas on goods produced by World Trade Organization member countries. Cotton trousers, cotton knit shirts and blouses, and cotton and manmade-fiber underwear were the first categories to be considered for safeguard provisions, or temporary quotas. Graff CaliforniaWear struck a licensing deal with Hong Kong–based U.M. Co. granting U.M. the right to produce apparel under Graff’s labels, Graff, GraffWear, GraffJeans and GW. U.M. said it plans to open a U.S. office in Los Angeles to oversee the Graff division. Hubert Guez, a shareholder of Los Angeles denim maker Innovo Group, sold the separately owned Commerce Clothing Co. to New York–based private-label maker Cygne Designs Inc. Retail

Los Angeles jewelry designer Tarina Tarantino opened her first U.S. store, on West Melrose Avenue. The designer already has a store in Milan, Italy. The city of Beverly Hills and the Rodeo Drive Committee added photographers Herb Ritts and Mario Testino to the Rodeo Drive Walk of Style and honored the two with an upscale street party, which drew an all-star guest list including Testino. (Ritts was honored posthumously.)

Los Angeles–based lingerie maker Shirley of Hollywood opened its first retail store in April—in London. The company’s subsidiary, Shirley of Hollywood U.K., will oversee the store, which is based in the Knightsbridge neighborhood. The city of Los Angeles approved new plans for the Sunset Millennium retail and residential project at the corner of Sunset and La Cienega boulevards. The project will include two hotels: a W and a Marriott. Los Angeles–based Technovix opened a 60,000-square-foot visual-display superstore in downtown Los Angeles. NewTech Display, located at 2600 S. Broadway, carries store fixtures, slat walls, rack and hanging systems, mannequins and other visual-display products.

Trade Shows

The Los Angeles International Textile Show, held April 4–6 and falling among the split Fall ’05 Los Angeles market weeks, drew mixed reviews from attendees and exhibitors. The show was held amid Los Angeles Contemporary Market Week (March 17–22), Los Angeles Fashion Week (April 8–12) and the Los Angeles Majors Market (April 11–13). The strong Los Angeles Majors Market salvaged a split Fall ’06 trade show season in Los Angeles when department store buyers turned out in droves for the April 11–13 market, which concluded a season that began in mid-March. Finance

New York–based Perry Capital LLC acquired Capital Factors Inc. from Regions Financial Corp. for an undisclosed sum. MAY

Manufacturing

Brothers Gerard Guez and Paul Guez, owners, respectively, of Tarrant Apparel Group and Blue Concept Inc., announced plans to take their companies public through a reverse merger with Greenwood Village, Colo.–based Keating Investments LLC. The two separate deals involved what is known as a reverse merger, in which a public shell company purchases the shares of a private company. Two bankrupt Los Angeles–based apparel makers said they would sue Federated Department Stores for what they say were illegal chargebacks. CFI/CLI Liquidating Trust, acting for the manufacturer of the Carole Little and Chorus Line labels, filed a class-action lawsuit in late 2003. Nick DeLeo has joined the suit. The former president of Royal Apparel Group acquired the William B. label in early 2002 but closed its doors the following year. Federated has denied any wrongdoing in the chargeback issue. Surf Summit, the annual surf industry conference in San Jose Del Cabo, Mexico, drew about 400 attendees, representing a 21 percent increase in annual attendance. The conference, sponsored by the Surf Industry Manufacturers Association, features a slate of panel discussions about the industry, as well as an awards program that recognizes influential manufacturers, retailers and individuals in the surf industry. Costa Mesa, Calif.–based Volcom Inc. filed an initial public offering on the Nasdaq stock exchange, with the potential to raise as much as $86 million. Los Angeles–based business association Fashion Business Inc. partnered with two existing business development centers to host FBI programs in San Francisco and San Diego. The Council of Fashion Designers of America hosted a cocktail party at Diane von Furstenberg’s Beverly Hills home to introduce its programs to West Coast designers. The informal cocktail party drew a mix of designers, fashion industry executives and celebrities. Import/Export

El Monte, Calif.–based Cyber Merchants Exchange, organizers of the ASAP Global Sourcing Show, hosted the first ASAP China Buying Trip, a two-week excursion during which 87 apparel importers toured several Chinese manufacturing centers. The trip began on May 20, just as the U.S. government installed temporary quotas on several merchandise categories imported from China. Real Estate Jamison Properties closed escrow on its purchase of the California Market Center for $135 million from Hertz Investments. The new owners made a number of management changes, including naming John Kim as general manager, replacing Paul Lentz. Retail

Eco-friendly and upscale Los Angeles designer Linda Loudermilk announced plans to open a luxury-eco store on Melrose Place by summer 2005. Anaheim, Calif.–based retail chain Pacific Sunwear grew to 1,013 stores in 2005. April retail sales beat the projections, growing 2.2 percent over the previous year, according to the International Council of Shopping Centers. San Francisco–based retailer The Gap announced plans to launch a new concept store for women age 35 and older, called Forth & Towne. The store was set to open in the fall, with plans to roll out up to 30 stores in 2006. Huntington Beach, Calif.–based surf retailer Jack’s Surfboards opened a new location in Corona Del Mar, Calif., with a grand opening party that drew many of the surf industry’s insiders, including Hurley International founder Bob Hurley; Rusty founder Rusty Preisendorfer; Kelly Gibson, chief executive officer of O’Neill Clothing; and Paul Naude, president of Billabong USA. Trade Shows

The California-based International Swimwear and Activewear Market—known as the ISAM show—joined the lineup for the August run of MAGIC Marketplace in Las Vegas. The trade show produced a pavilion of about 150 swimwear exhibitors in the North Hall of the Las Vegas Convention Center. ISAM hosted three annual shows at various locations in Las Vegas prior to partnering with the Woodland Hills, Calif.–based trade show giant. Los Angeles business owners were in attendance—although in small numbers—at the April 27–29 Peru Moda 2005 show in Lima, Peru. In its ninth year, the show nearly doubled the number of exhibitors, growing to 250 and about tripling its foreign-buyer attendance to 500. JUNE

Manufacturing

Los Angeles apparel and textile makers looked for creative ways to conserve energy as gasoline and natural gas prices soared. The California Department of Industrial Relations issued $253,000 in fines during a surprise three-day sweep of 40 garment contractors in Southern California. Twelve shops were fined for operating without a garment manufacturer’s license, and goods were confiscated from five companies. Most of the fines were related to OSHA (Occupational Safety and Health Association) violations. After further review, the DIR revoked the licenses of Korea Sewing Machine Inc. and Young Crystal Inc., both of which have a history of labor-law violations. The DIR also denied renewal applications for DNK Fashion Inc. and Cicci Inc. Importers bringing goods from China were closely monitoring the temporary quotas on items including underwear, cotton pants and cotton knit tops, which were expected to be full by July. Tarrant Apparel Group canceled its deal with Qorus.com to take its Private Brands Inc. division public through a reverse merger. Private Brands produces the licensed American Rag Cie collection. Retail

Despite cool weather that kept consumers spending conservatively, May retail sales grew by 2.9 percent, according to the International Council of Shopping Centers. Pleasanton, Calif.–based discounter Ross Stores Inc. acquired a nearly 700,000-square-foot distribution center in Moreno Valley for $38.2 million and said it would expand the facility 1.4 million square feet, complementing its existing 1-million-square-foot site in nearby Perris. Iconic lingerie retailer Frederick’s of Hollywood unveiled the new look of its flagship store in Hollywood, with plans to move to a 4,500-square-foot space near the corner of Hollywood Boulevard and Highland Avenue. The store was set to open in September. Sherman Oaks, Calif.–based specialty retailer Belle Gray made plans to open its second location in July in Calabasas. The 1,200-square-foot store is located in the upscale shopping center The Commons at Calabasas. Los Angeles–based T-shirt and sportswear maker Hard Tail opened a 6,400-square-foot store at the Third Street Promenade. The store is the first for the company. Retailer Hennez & Mauritz LP—known as H&M—announced it would open a 35,000-square-foot store in San Francisco in November and was scouting other locations throughout the state. British designer Ted Baker hosted a party to celebrate the opening of his Robertson Boulevard boutique, one of the company’s two flagship boutiques (the other is in London). Technology

SGS/U.S. Testing Co., which provides quality-assurance testing and technical assistance to the apparel industry, moved from Commerce, Calif., to a new 25,000-square-foot state-of-the-art laboratory space in Rancho Cucamonga, Calif. Real Estate

Irvine, Calif.–based real estate firm Passco Real Estate Enterprises Inc. purchased The Promenade at Howard Hughes Center for $95 million. The 247,833-square-foot entertainment and retail center houses The Bridge Theaters, Nordstrom Rack, Borders, Hi Fashion and Nilar Collection. Market Weeks

Sales were brisk at the June 10–14 run of Los Angeles Fashion Market Fall II/Holiday at the California Market Center, The New Mart, the Cooper Design Space and the Gerry Building. Trade Shows

New York–based men’s contemporary-streetwear show Project Las Vegas, which launched in February at Vegas’ Mandalay Bay, announced plans to move to the Venetian for the Aug. 28–29 run of the show. Los Angeles–based contemporary-streetwear show Agenda LLC launched a new show, called Stitch, in New York, with a debut July 18–20. The streetwear show ran concurrently with Project Global Trade Show and ENK International’s Collective. The Action Sports Retailer Trade Expo publicized plans to launch a mini-show, called Gold Box Mission, within the biannual surf-and-skate industry trade show during its Sept. 9–11 run in San Diego. Gold Box Mission featured small streetwear companies including Cardboard Robot, Turkey, Stalyon, Austus, Unified, Aztec and Lifetime Clothing. Import/ExportPierPass, the new program at the ports of Los Angeles and Long Beach to extend the hours of operation at the ports, was scheduled to begin July 23 after nearly one year of development. JULY

Manufacturing

Volcom Inc.’s stock surged 41 percent over its opening price on June 30, the date the Costa Mesa, Calif.–based company issued its initial public offering. Vernon, Calif.–based BCBG Max Azria Group Inc. purchased French retail chain Alain Manoukian SA for $69.6 million. The deal brings Alain Manoukian’s 300 stores, headquarters and distribution center under the BCBG umbrella. San Diego–based footwear maker Reef, which was acquired last year by manufacturing giant VF Corp., will move its distribution center to VF’s 817,000-square-foot facility in Visalia, Calif. Import/Export

Additional safeguard petitions have been filed to limit imports on swimwear, non-knit shirts, skirts, pajamas, nightwear and socks. After a year of debate, the Central American Free Trade Agreement (CAFTA) was passed by the U.S. House of Representatives in a 217–215 vote on July 28. Under the pact, apparel made in Central America from U.S. or Central American knitted or woven fabric can be shipped to the United States duty free. The temporary quotas for synthetic pants and men’s and boys’ woven tops were expected to be met by the end of July. The quota for cotton knit tops, synthetic knit tops, cotton pants and underwear was exceeded at the beginning of the month. Education California’s design schools saw enrollment jump between 5 and 80 percent over the last year, according to school administrators, who credited the surge in enrollment as much to demographics as to growing awareness of and interest in the fashion industry and the costume-design fields. CharityCalifornia fashion industry executives helped to raise nearly $95,000 for the California Fashion Foundation at the first Charity Poker Tournament at Hollywood Park Casino in Inglewood, Calif. Real Estate

A Los Angeles–area private investment firm reached an agreement with MJW Investments to purchase the Gerry Building in downtown Los Angeles for an undisclosed amount, according to building executives, who declined to name the investment firm. General Growth Properties Inc., owner of the Glendale Galleria mall in Glendale, Calif., will face off against Caruso Affiliate in a $40-million antitrust and anti-competition suit over Caruso’s The Americana at Brand project, a shopping center planned for a location across the street from the Galleria. Retail Hot weather stymied Back-to-School buying in July, according to the International Council of Shopping Centers, which saw sales increase 3.6 percent, slightly below the organization’s forecasted 4 percent. Valentino, Chloe, John Varvatos, Replay and Quiksilver all announced they would be heading to Costa Mesa, Calif., to open new boutiques in the upscale South Coast Plaza shopping center. Commerce, Calif.–based Antik Denim said it would open its first store at a 3,500-square-foot space on Melrose Avenue in Los Angeles. Sales of apparel rose 4.7 percent in June, according to the International Council of Shopping Centers, which cited the balmy weather on the East Coast for sending shoppers to the stores for summery clothing. Plans to open a Prada store in San Francisco were shelved when British real estate firm the Grosvenor Group purchased the proposed site on Post Street for $11 million. The Laguna Beach, Calif., City Council voted unanimously to reject contemporary retailer Sophea Parros’ plans to open a 5,000-square-foot boutique in the coastal town, on the grounds that the city was at saturation point for women’s boutiques. More than 30 Robinsons-May and Macy’s West stores in Southern California prepared to close after the Holiday sales season. Some locations were to be converted to the Macy’s or Bloomingdale’s nameplate. The closures had been expected in the wake of Federated Department Stores’ acquisition of May Co., which owned Robinsons-May. Federated operates several department store chains, including Macy’s and Bloomingdale’s. Los Angeles–based contemporary label Single opened a 1,000-square-foot boutique—the first for Single designer Galina Sobolev—on Melrose Avenue in Los Angeles. Knitwear designer Corine Madley opened a 700-square-foot store for her Madley label in Los Angeles’ Venice neighborhood. E-tailers Mary Helen Shashy, Alice Shashy and Michael Misetich launched an online e-tail site called HotterThanHollywood.com dedicated to California labels. Contemporary T-shirt maker James Perse opened his third boutique, in Malibu, Calif., on July 2, shortly after opening his first New York store. Perse also has a store in West Hollywood, Calif., and left open the possibility of opening more stores in the future. Trade Shows Hong Kong Fashion Week saw attendance jump by almost 29 percent to 19,430 at its July 12–15 show at the Hong Kong Convention and Exhibition Centre. The introduction of the Sunglass Hut Swim Shows Miami Presented by Lycra,produced by IMG’s 7th on Sixth and featuring a full slate of highly energized runway shows, provided a much-needed thrill for swimwear makers and retailers during the July 16–20 run of the Swimwear Association of Florida’s Miami Swim Show in Miami Beach, Fla. It was estimated that buyer attendance grew by 15 percent, although show organizers declined to give firm attendance figures. AUGUST

Manufacturing

California state officials launched raids of small garment manufacturers throughout California in an effort to crack down on businesses believed to be violating state label and tax laws. On the first day of the raids, Aug. 2, seven multi-agency teams closed down nine factories, confiscated apparel and issued citations for alleged violations including not having a current garment manufacturer’s license and not having worker’s compensation insurance. New York–based trend forecasting and retail consultancy The Doneger Group announced plans to open a Los Angeles office, with merchandising executive Janine Blain helming the office. Los Angeles–based contemporary dress brand Mica closed its doors after 16 years in business and severed its partnership with young contemporary label Voom. Calabasas, Calif.–based Buxbaum Group said it would shift from being an inventory-liquidation business to an apparel industry investment firm. New York–based Iconic Brand, owner of the Candie’s, Badgley Mischka, Joe Boxer and Bongo trademarks, purchased the Rampage brand for $45.9 million from Commerce, Calif.–based Rampage Clothing Co. Import/Export

The producers of the ASAP Global Sourcing Show in Las Vegas announced plans to take a group of buyers and manufacturers to Pakistan and Bangladesh for ASAP’s second buying trip of the year. Participants in the Nov. 8–17 trip were scheduled to tour factories in Karachi and Lahore in Pakistan and in Dhaka, Bangladesh. Real Estate

MJW Investments sold the first phase of its Los Angeles Fashion District mixed-use property Santee Court to the Michigan Teachers Fund for $44.7 million. Dallas-based Trammel Crow Co. will take over the property management duties for Santee Court, which features residential lofts and ground-floor retail. MJW will continue to oversee construction of the second phase of the project, which includes 64 for-sale condominiums located southeast of the first phase. Fashion District property owner Anjac Fashion Buildings sold the Grand Olympic Auditorium to a Korean American church for an undisclosed sum. Finance

New York–based Israel Discount Bank opened a West Coast brand of its IDBFactors division, headed by longtime factoring executive Harold Dundish. Trade ShowsBuyers were cautiously optimistic at the July 31–Aug. 2 run of the Westcoast Exclusive upscale-menswear show, held at the W Hotel in Los Angeles’ Westwood neighborhood. Many of the attendees were preparing for the Las Vegas run of the show, set for Aug. 28–30 and running concurrently with MAGIC International. A new textile print and trend show launched Aug. 8–9 at the California Market Center with more than 33 design studios showing in open booths on the building’s 13th floor and a full slate of trend-forecasting presentations. Organizer Patricia Brandt, owner of Patricia Brandt Co., said she hopes the show will become a biannual event in January and August to complement the Los Angeles International Textile Show in April and October. Attendance was up by 3 percent to 2,600 at the July 31–Aug. 2 run of Lingerie Americas in New York, which drew several new West Coast–based exhibitors, including PJ Salvage and Honeydew Intimates. Despite slow sales, exhibitors reported meeting with key retailers at the Aug. 12–16 run of the Los Angeles Fashion Market at the California Market Center, The New Mart, the Cooper Design Space and the Gerry Building. ENK International, producer of Fashion Coterie and the Brighte Cos. shows, announced it will debut a new denim-only trade show called Blue Jan. 22–24 at the Show Piers in New York. Fashion Weeks

San Francisco Fashion Week held its sophomore run Aug. 24–28 at the Palace of Fine Arts Theater in San Francisco, where 18 runway shows featured San Francisco designers.

Retail Soaring fuel prices slowed the pace of retail sales in August but didn’t check consumer spending completely, said the International Council of Shopping Centers, which saw a 3.6 percent increase in spending over the previous August. Los Angeles retailer Fred Levine, owner of the 19-store M. Frederic boutique chain, opened its first men’s store, M. Frederic Man, at the Promenade at Westlake shopping center in Westlake Village, Calif. Vernon, Calif.–based BCBG Max Azria opened a 5,060-square-foot flagship store on Rodeo Drive in Beverly Hills. September

Trade Shows

Advanstar Communications, owners of MAGIC Marketplace, purchased Project Global Trade Show and the Pool Trade Show for undisclosed sums. The two contemporary-streetwear shows were part of a growing mix of satellite shows to massive MAGIC that also included The Exclusive, ASAP Global Sourcing Show, Women’s Wear in Nevada, Off-Price Specialist Show and Brighte Cos. Early this year, MAGIC announced a partnership with ISAM, the International Swimwear and Activewear Market. The Aug. 29–Sept. 1 run of MAGIC drew 101,000 visitors and more than 3,600 exhibitors. The Action Sports Retailer Trade Expo, held Sept. 9–11 in San Diego, was the most successful in years, according to show organizers, who said attendance increased 10 percent to about 7,000. European Union and Chinese officials reached terms of an agreement to end the so-called Bra Wars on the closing day of lingerie trade show Lyon Mode City, held Sept. 3–5 in Lyon, France. The agreement ended a dispute that had more than 75 million bras, T-shirts and other items manufactured in China held at European borders by customs officials because Chinese imports to the EU had exceeded the temporary quotas instituted in June.

Surf industry trade show Surf Expo saw a 23 percent increase in attendance to more than 15,000 attendees at its Sept. 16–18 show at the Orange County Convention Center in Orlando, Fla. About 15,000 people attended Fashion Coterie in New York during its Sept. 18–22 run at the Show Piers on the city’s west side. This season, the show added a fourth pier, Pier 88, to accommodate new exhibitors. Material World, the annual fabric, sourcing and technology show held in Miami Beach, took its show on the road, bowing in New York Sept. 28–30 at the Jacob Javits Convention Center. Show producer Urban Exhibitions has signed a five-year contract with the Javits Center. Import/Export

The price to ship apparel across the ocean from Asia has risen steadily in 2005 due to mounting fuel prices, and on Oct. 1, it was about to go up again as ocean carriers began adding additional fuel-related surcharges to their costs. Technology

Los Angeles–based CAD/CAM supplier Tukatech Inc. landed a contract with the Apparel Export Promotion Council of India to install 168 TukaCAD design stations at the Apparel Training and Design Center vocational centers throughout that country. Retail

Four-year-old shopping and entertainment center Hollywood & Highland announced it would undergo an extensive redesign in the hopes of driving traffic to the shopping center in the heart of Hollywood. Buyers from French retailer Galeries Lafayette took a trip to Los Angeles to prepare for an upcoming exhibition titled “L.A. Now,” scheduled to bow in spring 2006 at the landmark retailer’s 12 flagship stores in France, including the 1912 Art Nouveau store on the boulevard Haussmann in Paris.

Retailer Ron Herman, owner of the landmark store Ron Herman/Fred Segal–Melrose, said he would head into cyberspace with his first e-tail store, RonHerman.com. Herman also partnered with 7 for All Mankind to develop a line of separates for 7’s new More 7 division. Los Angeles knitwear manufacturer and retailer Suss Cousins opened her first New York Suss Designs store, on Lafayette Street. New York–based fashion icon Diane Von Furstenberg opened a retail store on Melrose Avenue.

Nordstrom Inc. opened a 125,000-square-foot store at the Irvine Spectrum Center in Irvine, Calif.
Real Estate
Bella Terra, the open-air shopping center under development on the site of the former Huntington Center mall in Huntington Beach, Calif., was sold for $228 million to San Jose, Calif.–based investment group DJM Capital Partners and GMAC Institutional Investors, according to developer J.H. Snyder Co.
Charity
In the wake of Hurricane Katrina, which devastated New Orleans and surrounding Gulf Coast cities, the apparel industry kicked off several fundraising efforts. Among the companies raising funds for charities Red Cross and the Salvation Army were The Gap, MAGIC International, Lisa Kline, M. Frederic, Quiksilver, Warnaco, the California Fashion Association, Cooper Design Space and California Apparel News.
The Surf Industry Manufacturers Association raised $400,000 for the Surfrider Foundation, which campaigns for clean oceans and beaches, at its annual SIMA Waterman’s Ball, held in Dana Point, Calif.
Fashion fans helped to raise more than $1.4 million for HIV/AIDS charities at Macy’s Passport 2005, held Sept. 29 in Santa Monica, Calif., where Jennifer Lopez turned out to show her new JLo collection, and Mattel sent little boys in Hot Wheels apparel down the runway in miniature race cars.
OCTOBER
Trade Shows
Business was brisk and buyers from most of the large department store chains turned out for the Oct. 9–12 Los Angeles Majors Market at the California Market Center, where they caught up on Spring trends at Directives West’s fashion show and Barbara Fields Buying Office’s trend seminar.
Rain and a packed trade-show schedule had an effect on traffic at the Oct. 17–20 Los Angeles International Textile Show, but still exhibitors were pleased with the dedicated designers and piece-goods buyers who turned out to shop the show.
Falling gasoline prices and a chance to last-minute shop for Holiday merchandise helped fuel the optimistic mood at the Oct. 21–25 Los Angeles Market Week.
Entertainment
The second season of TV’s fashion reality show “Project Runway” was set to air on Bravo in December with eight of the 16 designer-contestants hailing from Los Angeles.
Retail
Despite skyrocketing fuel prices and economic devastation caused by hurricanes Katrina and Rita, retail sales for September rose 4 percent, according to the International Council of Shopping Centers.
Manufacturing
Richard Tyler, who closed his retail store in August and announced plans to scale back his business, was back with a new line in the works called Richard Tyler Collection, which is to be produced overseas.
Harajuku Lovers, the licensed partnership between pop-star Gwen Stefani and Los Angeles–based Jerry Leigh Apparel, bowed during Los Angeles Fashion Week with a star-studded party in Hollywood.
Charity
Hot Kiss President and owner Moshe Tsabag was honored as Man of the Year at the 49th annual Fashion Industries Guild of Cedars-Sinai Medical Center’s annual charity dinner in Beverly Hills, where a sold-out crowd helped raise $650,000 for the medical center’s Pediatric Neurology and Neurodevelopment Program and the Ruth Bregman Children’s Health Clinic.
Designer Jacquelyne Love and her husband, Mike Love of The Beach Boys, hosted a benefit concert and fashion show in Los Angeles, where they raised more than $200,000 for the American Red Cross’ Hurricane Katrina relief efforts.
Fashion Weeks
New independent runway series Fuse bowed during Los Angeles Fashion Week with a slate of 10 labels that showed on a runway at the FAB street market at the Los Angeles campus of SCI-Arc (Southern California Institute of Architecture).
San Francisco International Fashion Week, one of the city’s two fledgling fashion weeks, collapsed in a high-tension drama on its scheduled opening day, when organizers lost the original venue, and designers, some in from overseas, pulled out of the show. A handful of designers held an impromptu showing several days later in an attempt to salvage their efforts.
The L.A. apparel industry took time to honor its own during Los Angeles Fashion Week with the inaugural L.A. Fashion Awards, held at the Orpheum Theatre. A jam-packed crowd included many of the city’s best-known designers, as well as many of the industry’s top executives.
NOVEMBER
Retail
San Francisco–based retail giant Gap Inc. rolled out its new store format in San Diego at the Fashion Valley Mall, with plans to introduce the new look at stores in the city’s Horton Plaza and the North County Fair mall. The new format includes separate entrances for male and female shoppers and a central cash wrap.
Denim label Paige Premium Denim, which bowed earlier in the year, launched a premium men’s line called PPD and opened a store on Robertson Boulevard in Los Angeles.
Veteran L.A. retailer American Rag Cie will open a 12,500-square-foot store at Fashion Island Newport Beach in September 2006, according to the mall’s owner, The Irvine Co.
Los Angeles–based premium-denim label True Religion opened its first store, in Manhattan Beach, Calif., and co-owner Jeff Lubell is considering opening additional boutiques for the label.
Apparel stores were among the retail sales winners in November, according to the International Council of Shopping Centers, which said the sector’s sales rose 3.2 percent over last year.
A bankrupt apparel maker, Adamson Apparel, has sued Saks Inc. in federal court for allegedly unauthorized chargebacks and breach of contract. New York–based Adamson Apparel sold merchandise to Saks in 2002 and 2003 under the XOXO and Baby Phat brands. Adamson filed for Chapter 11 bankruptcy in September 2004.
A small private-label manufacturer, Unlimited Resources Group Inc., sued premium-denim maker Antik Denim in Small Claims Court over unpaid invoices and was awarded $5,000.
Import/Export
The United States and China signed an agreement to limit Chinese sock imports into the United States in the latest development in safeguard measures, or temporary quotas, created to stem the flood of imports coming into the United States quota free from China. However, after complaints from skiwear makers, the Committee for the Implementation of Textile Agreements lifted the temporary quotas on synthetic trousers, which includes ski and snowboard pants.
After more than three months of intense trade talks, China agreed to limit its textile exports to the United States until the end of 2008.
The United States and Peru have come to terms on a free-trade agreement that will eliminate tariffs and trade barriers between the two countries.
Manufacturing
California Gov. Arnold Schwarzenegger took a contingent of Los Angeles designers with him when he toured China on a weeklong trade mission. Among the designers on the trip were Kevan Hall, Chan Luu, Max Azria of BCBG Max Azria and Monique Lhuillier. The trip included a runway show featuring the Los Angeles designers’ work.
New York–based manufacturing powerhouse Liz Claiborne Inc. bought Vista, Calif.–based yoga-wear and outdoor-apparel maker Prana for $34.4 million.
Paul Frank, the designer and co-founder of Costa Mesa, Calif.–based Paul Frank Industries, left the company to pursue other unnamed interests. Company executives said that the split was amicable.
Newport Beach, Calif.–based men’s and women’s contemporary label Trovata took top honors when the Council of Fashion Designers of America and Vogue magazine presented the company with the CFDA/Vogue Fashion Fund Award, which includes $200,000 and a year’s worth of business mentorship.
Miami-based Perry Ellis International announced plans to acquire Newport Beach, Calif.–based Gotcha International in a deal that would fold Gotcha’s brands GirlStar and Gotcha under the Perry Ellis umbrella.
Danny Guez, son of Paul Guez, announced he would take his company, People’s Liberation, public through a reverse merger with Vero Beach, Fla.–based shell company Century Pacific Financial Corp. Guez owns People’s Liberation, the year-old premium-denim and contemporary high-end knit line, and 50 percent of William Rast with pop singer Justin Timberlake and Trace Ayala.
Los Angeles–based retro-inspired contemporary line Stop Staring! received the Minority Manufacturer of the Year Award from the Los Angeles Minority Business Opportunity Committee.
Huntington Beach, Calif.–based Jeantex Group, manufacturer of denim for brands such as ABS, Blue Cult, Guess and Lucky, annouonced it would acquire Carson, Calif.–based Sanatex Inc., a low-cost private-label manufacturer for mass merchants and department stores.
Charity
The Lucky Brand Foundation, the charitable arm of Lucky Brand Jeans, raised about $700,000 for the Children’s Health Fund at its ninth annual Black Tie & Blue Jeans gala in Beverly Hills.
Marts
Los Angeles–based premium-denim label 7 for All Mankind made plans to open a 7,500-square-foot showroom on the ground floor of the Cooper Design Space in downtown Los Angeles.
The California Market Center began an extensive remodel of its 13th floor that will result in 75,000 square feet of open exhibition space and 35,000 square feet of hard-wall showroom space and a nearly panoramic view of downtown Los Angeles.
DECEMBER
Real Estate
Columbus, Ohio–based Glimcher Realty Trust purchased the Puente Hills Mall in the City of Industry, Calif., for $170 million.
Retail
Irvine, Calif.–based retail chain Draper’s & Damon’s Inc. was acquired by Golden Gate Capital, a San Francisco private-equity investment firm, in a deal brokered by Los Angeles investment group The Sage Group.
Trade Shows
The Action Sports Retailer Trade Expo announced that it would shelve its Back-to-School show and launch a Holiday show, set for May 31–June 1 at the Newport Dunes Waterfront Resort in Newport Beach, Calif. The new show will be a tiny representation of its larger Spring and Fall shows, held in San Diego.
MAGIC International said it would expand its jewelry resources in February with the addition of MODEUROPE, a new fashion jewelry show featuring product from Europe. The new show will share space with the Jewelry Marketplace by JCK, which bowed in August at the Las Vegas Hilton.
The Swimwear Association of Florida canceled its February Spring/Summer Miami Swim Show, originally set for Feb. 5–7 in Miami, after a vote by the association’s members. The organization will continue to host its much larger Cruise show, set for July 15–19 in Miami Beach.
New York–based contemporary trade show Project Global Trade Show will move to New York City’s Jacob Javits Convention Center for its Jan. 16–18 run and will launch a section, called Seed, for new international brands.
OBITUARIES
Rita English, sales representative, 52
Ben Clareman, textile executive, 87
Lee Graff, manufacturer and philanthropist, 94
Guillermina Baraza, boutique buyer, 37
Rosalinda Placensia, Garment Contractors Association coordinator, 54
Arthur Teichner, garment dyeing executive, 83
Joe Vecchiarelli, apparel industry supplies retailer, 83
Al Friedman, textile executive, 90
Eugene F. Ferranti, swimwear and textile executive, 74
Peter E. Haas Sr., Levi’s executive, 86
Hal Ruttenstein, Bloomingdale’s fashion director, 69