"We are pleased to have E-motion Apparel as the first acquisition of our consumer product microbrand rollup strategy. Their US-based manufacturing capabilities will enhance our ability to quickly produce new samples and product ideas which is critical to the successful execution of our e-commerce strategy for apparel," Angelo Ponzetta, 12 ReTech's CEO, said.

"I am impressed by the software technology of 12 ReTech which helps retailers to fight and thrive in the very tough environment we are experiencing today. I feel that their technology will determine the future winners in the retail industry. Joining 12 ReTech is very exciting to me. I expect our brands to benefit greatly under 12 ReTech’s ownership, as I will now have access to the working capital that I have been looking for to get our business to the next level of success. Once we receive the working capital, I am projecting $1.4 million in revenues, with $300 thousand EBITDA over the next 12 months. There are opportunities that I see where we could double these projections in the second 12 months,” Hub Blanchette, owner and CEO of E-motion of Apparel.

"Hub Blanchette's brands are not well known throughout the world yet, but they have a large potential to grow. What I especially like about E-motion Apparel is that the company has their own manufacturing capabilities in the US which are tailored for smaller production runs. This will allow us to keep our online offerings new and fresh and should reduce our lead-time to test new products before committing the resources to produce large production runs overseas. This strategic asset will be very useful for our next moves," Ponzetta added.

"I see E-motion Apparel as the foundation stone of our microbrand acquisition strategy in the US in support of our technology efforts worldwide. As I recently explained in my recently published shareholders update letter, we are working on many microbrands that fit our rollup acquisition model. It happens that this one, which hadn't been announced, came together very quickly, while some of our previously announced acquisitions are taking a little longer because they need third-party approvals such as from their banks. Notwithstanding, we still expect to acquire all of the acquisitions already announced," concluded Ponzetta. (RR)

Fibre2Fashion News Desk – India