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Fashion retailer United retail collaborates with Redcats

24
Feb '06

Large-size women's fashion apparel retailer United Retail Group Inc announced a collaboration with Redcats USA, the nation's largest catalog retailer, whereby an AVENUE catalog will be created and tested by Redcats.

For a trial period lasting up to six months, Redcats USA will produce and distribute a test catalog under the AVENUE trade name.

Of particular importance, United Retail Group will not assume any of the costs associated with this trial, and catalog sales will not be included in United Retail Group reported sales.

The parties' business relationship after the trial will be worked out on the basis of the test results and may result in a license agreement among other arrangements.

The purpose of the test is to assess the appeal of the AVENUE brand in the direct to consumer market while drawing on the direct to consumer expertise of Redcats USA.

The trial includes several mailings with the first test catalog to be distributed by the end of February.

Raphael Benaroya, the Company's Chairman, President and Chief Executive Officer, commented: "Redcats USA is a leader in its industry with the expertise to maximize the potential of the AVENUE brand in the catalog sector.

They are very pleased to be working with Redcats USA on this test.

After this test, the two parties will evaluate the possible benefits that a business relationship would present.

Most importantly, this test is risk free for United Retail Group, and they will determine how to proceed with the opportunity only after assessing the customer response."

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