Category Archives: Fashion

Ecko Clothing In Debt Troubles

Clothing designer Marc Ecko — who famously bought Barry Bonds’ controversial record-breaking home-run ball and put an asterisk on it — is now in danger of being caught in a squeeze himself.

Ecko has hired investment bank Peter J. Solomon to help refinance at least $170 million in debt owed to two key business partners, sources told The New york Post. With lenders scarce, sources say his empire may be dismantled as he sells off assets to pay creditors.


After a disastrous holiday season that forced heavy markdowns at department stores including Macy’s — where Marc Ecko is the largest supplier of young men’s clothing — sources said the company owes more than $100 million to Li & Fung, a global trading company that helps manufacture Marc Ecko’s inventory.

To make matters worse, Marc Ecko has defaulted on a term loan of more than $70 million from a syndicate led by commercial-lending giant CIT, sources said.

While Marc Ecko has won forbearance on the loan, CIT “wants their money,” and will have to be paid in full by July and possibly sooner, according to one source. Accordingly, Ecko is “scrambling to avoid bankruptcy so he doesn’t lose every stitch of equity he’s got,” the source added.

“We’re pretty confident that this is n’t an issue that’s life-threatening at all,” Michael Golden, chief marketing officer at Marc Ecko Enterprises, told The Post. “In our case, we have more than enough assets to pay off that term loan, and we have more than enough time.”

Golden characterizes the $100 million due to Li & Fung as “normal trade payables” that fluctuate with seasonal inventory. And while he admits that “some businesses are doing better than others,” Golden noted strength in the company’s licensing and international units.

Nevertheless, sources said Marc Ecko’s executives and bankers alike have been lobbing phone calls to rivals, trying to unload the company’s brands in exchange for cash. Having slashed its bloated expenses in half, Marc Ecko is desperately trying to lease out chunks of its 280,000-square-foot headquarters on West 23rd Street — which includes a half-size basketball court.

The dire scenario is a far cry from a few years ago, when Marc Ecko had entertained potential offers from Jones Apparel Group and Tommy Hilfiger. At one time, both firms were weighing bids for Marc Ecko in the $500 million range, according to one source.

Source: Ny post

Kanye West Starts Jeans Line

Kanye West is reportedly planning to release his own line of denim jeans.

According to The UK Mirror, during Kanye’s recent visit to Britain, the rapper had a meeting with the heads of the popular Religion Clothing line to get some tips.


“He really loves British style – it’s captured his imagination. And he wanted to tap into the source to give him some ideas,” an insider told The UK Mirror.

“Religion has developed as a trendy label among celebs and Kate Moss and Sarah Harding are big fans of the line. Kanye wants his product to have the same level of prestige,” the source added. “He doesn’t want his clothes to just have his name on; he wants to develop them into a credible range.”

Kanye already has two shoe lines with Nike and Louis Vuitton and is planning to launch his Pastelle clothing line in the coming months.

Andre 3000’s Clothing Line Gets Off To A Bad Start

Andre 3000’s clothing line, Benjamin Bixby, has reportedly gotten off to a rough start after just launching four months ago.

According to Woooha, sales of the rapper’s gear have failed to take off because of the ongoing economic crisis and the clothing line’s high prices and limited availability.


Andre launched Benjamin Bixby in September 2008 and the line included a sweater vest with a $275 price tag and a $1,400 leather jacket.

The Outkast rapper has now been forced to slash prices and sell his clothing via discount luxury sites.

“The Benjamin Bixby clothing line is facing severe financial hardships due to limited sales and excess inventory. Because [Andre] paid so much attention to detail, his clothing line was not cheap to reproduce on a mass scale. Instead, limited quantities of the collection were made and sold primarily online through luxury fashion sites such as Barneys.com,” the site said in an exclusive report.

“The problem is no one is buying the clothing line because of the high price point and no brand equity. As a result, the Benjamin Bixby clothing line has had to dramatically drop prices in order to move inventory and prevent retailers from shipping it all back to Mr. Benjamin,” the site revealed

“It’s not a good sign to see your four month old fashion collection on discount luxury sites, but the fact is selling the inventory at a low price is better than it sitting on the shelf and not making a dime,” the site added.

Despite the blow, Benjamin Bixby has been nominated for GQ’s second annual ‘Best New Menswear Designers in America’ contest. The winner of the contest will receive a 50,000 cash prize and a chance to create a limited edition collection for Levi.

Andre 3000’s Clothing Line Gets Off To A Bad Start

Andre 3000’s clothing line, Benjamin Bixby, has reportedly gotten off to a rough start after just launching four months ago.

According to Woooha, sales of the rapper’s gear have failed to take off because of the ongoing economic crisis and the clothing line’s high prices and limited availability.


Andre launched Benjamin Bixby in September 2008 and the line included a sweater vest with a $275 price tag and a $1,400 leather jacket.

The Outkast rapper has now been forced to slash prices and sell his clothing via discount luxury sites.

“The Benjamin Bixby clothing line is facing severe financial hardships due to limited sales and excess inventory. Because [Andre] paid so much attention to detail, his clothing line was not cheap to reproduce on a mass scale. Instead, limited quantities of the collection were made and sold primarily online through luxury fashion sites such as Barneys.com,” the site said in an exclusive report.

“The problem is no one is buying the clothing line because of the high price point and no brand equity. As a result, the Benjamin Bixby clothing line has had to dramatically drop prices in order to move inventory and prevent retailers from shipping it all back to Mr. Benjamin,” the site revealed

“It’s not a good sign to see your four month old fashion collection on discount luxury sites, but the fact is selling the inventory at a low price is better than it sitting on the shelf and not making a dime,” the site added.

Despite the blow, Benjamin Bixby has been nominated for GQ’s second annual ‘Best New Menswear Designers in America’ contest. The winner of the contest will receive a 50,000 cash prize and a chance to create a limited edition collection for Levi.

Diddy Buys Enyce Clothing Line For $20 Million

Sean “Diddy” Combs has reportedly bought hip-hop clothing line Enyce for $20 million from fashion giant Liz Claiborne Inc.

According to Women’s Wear Daily, Liz Claiborne Inc. purchased Enyce for $114 million in 2003 but the clothing line’s sales have dramatically declined.

Liz Claiborne Inc. believe that Diddy will help rejuvenate the once popular clothing line.

“Enyce is a strong brand with a loyal customer following; however, the unsettled economic environment and our commitment to properly resource and focus on other brands in our portfolio contributed to this decision,” explained William McComb, CEO of Liz Claiborne Inc. “As a leading player in the young men’s market, Sean Combs has the expertise and resources to help Enyce endure this difficult period and ultimately thrive. We are pleased that Sean Combs has decided to purchase the brand.”

Diddy Buys Enyce Clothing Line For $20 Million

Sean “Diddy” Combs has reportedly bought hip-hop clothing line Enyce for $20 million from fashion giant Liz Claiborne Inc.

According to Women’s Wear Daily, Liz Claiborne Inc. purchased Enyce for $114 million in 2003 but the clothing line’s sales have dramatically declined.

Liz Claiborne Inc. believe that Diddy will help rejuvenate the once popular clothing line.

“Enyce is a strong brand with a loyal customer following; however, the unsettled economic environment and our commitment to properly resource and focus on other brands in our portfolio contributed to this decision,” explained William McComb, CEO of Liz Claiborne Inc. “As a leading player in the young men’s market, Sean Combs has the expertise and resources to help Enyce endure this difficult period and ultimately thrive. We are pleased that Sean Combs has decided to purchase the brand.”

Rocawear launches new 9IX cologne

Jay-Z and Rocawear are trying to give Diddy and Sean John a run for their money in the mens cologne race. While Diddy has been busy promoting his upcoming Sean John fragrance “I Am King,” Jay-Z and Rocawear are gearing up for the launch of their first fragance called 9IX.

According to the press release 9IX Rocawear is a fresh woody aromatic scent, with a sexy modern sensuality.

Established in 1999, the name of the fragrance is significant, as Rocawear approaches its 10th anniversary and celebrates an evolution of the brand. The fragrance is now for sale at the Rocawear site starting at $50.

source

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