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Sub-Urban executes letter of intent to acquire Apparel Agent
30 Oct '06
2 min read
Sub-Urban Brands Inc pursuing high-margin revenue growth in the global fashion industry, has announced the execution of a non-binding letter of intent to acquire The Apparel Agent, one of the fastest growing manufacturers of base garments and a leading competitor of American Apparel.
The Company expects that the milestone acquisition will provide it with a core revenue stream, raise product margins and provide a solid foundation for its flagship multi-brand portfolio.
Based in Los Angeles, The Apparel Agent operates a 39,000 square foot warehouse facility with production, marketing, sales and customer service capabilities.
The company employs an experienced Executive team in addition to subcontracting nearly 70 contracted sewers and other laborers. They also leverage international manufacturing arrangements in Guatemala, China, El Salvador and India to handle import pricing for mass quantities.
The Apparel Agent manufactures and then wholesales its high quality base garments to designers, retailers and corporate clients who then embellish, re-brand and sell the garments under their own labels.
“Best of all, there will always be a market for base garments which greatly mitigates the risks typically associated with the fashion industry's cyclical nature,” adds Joseph Shortal, Chief Executive Officer of Sub-Urban Brands.
“With the acquisition of The Apparel Agent, Sub-Urban is entering a very exciting new phase that we believe will allow us to purchase garments at a greatly reduced price, which raises our margins and maintain an even greater percentage of our profits in house,” said Mr. Shortal.
“Sub-Urban can now be considered to have an economy of scale with integrated full-scale manufacturing, design, marketing and sales capabilities all under one roof.”
Consummation of the The Apparel Agent acquisition is subject to negotiation and execution of a definitive agreement and satisfactory completion of due diligence investigations.
The Company expects that the milestone acquisition will provide it with a core revenue stream, raise product margins and provide a solid foundation for its flagship multi-brand portfolio.
Based in Los Angeles, The Apparel Agent operates a 39,000 square foot warehouse facility with production, marketing, sales and customer service capabilities.
The company employs an experienced Executive team in addition to subcontracting nearly 70 contracted sewers and other laborers. They also leverage international manufacturing arrangements in Guatemala, China, El Salvador and India to handle import pricing for mass quantities.
The Apparel Agent manufactures and then wholesales its high quality base garments to designers, retailers and corporate clients who then embellish, re-brand and sell the garments under their own labels.
“Best of all, there will always be a market for base garments which greatly mitigates the risks typically associated with the fashion industry's cyclical nature,” adds Joseph Shortal, Chief Executive Officer of Sub-Urban Brands.
“With the acquisition of The Apparel Agent, Sub-Urban is entering a very exciting new phase that we believe will allow us to purchase garments at a greatly reduced price, which raises our margins and maintain an even greater percentage of our profits in house,” said Mr. Shortal.
“Sub-Urban can now be considered to have an economy of scale with integrated full-scale manufacturing, design, marketing and sales capabilities all under one roof.”
Consummation of the The Apparel Agent acquisition is subject to negotiation and execution of a definitive agreement and satisfactory completion of due diligence investigations.
Sub-Urban Brands Inc
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