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Headgear and Blue JV to make Taverniti & Antik denim

21
Jul '08
Blue Holdings Inc announced it has signed a Term Sheet outlining the basic business terms of a joint venture (JV) where Blue Holdings, Inc. and Headgear Inc. will co-market select Blue Holdings brands, including Taverniti So and Antik Denim, to selected Headgear retailers, and jointly develop new non-denim products. Blue Holdings and Headgear hope to execute the definitive joint venture agreement shortly.

Under the terms of the joint venture, Blue Holdings will provide sales and marketing support for selected accounts, introduce new accounts and co-develop new products. Headgear will design and develop all non-denim apparel and footwear and will share all production resources and sourcing resources world-wide. In addition, Blue Holdings will provide celebrity introductions to Headgear brands and link web sites for co-marketing opportunities.

Founded in 1992, Headgear Sportswear is today a wholesale designer and marketer of young men's and junior's apparel in the U.S., with a portfolio of private label brands such as Blac Label, Blac Label Pink, Blac Label Gunmetal and Tru Ambition footwear. Headgear's private label brands are sold through multiple retail channels.

“We are very excited to partner with Headgear Inc,” said, Glenn Palmer, Chief Executive Officer of Blue Holdings, Inc. “This venture will be an important step forward for Blue Holdings and Headgear. The partnership of these two companies has tremendous synergies. By combining our respective core competencies and creative vision, we will greatly expand the product offerings under the Antik and Taverniti brands as well as their bases of distribution. We look forward to a long and successful relationship.”

Jeff Watson, Chief Executive Office of Headgear Inc., said, “Headgear is more than excited to begin work with Blue holdings on a joint venture to make Taverniti and Antik denim pure lifestyle brands. Headgear's lead brand Blac Label will have estimated sales of $200 million at retail with estimated profits of $25 million for 2008. I feel in teaming with Blue, we can take Antik and Taverniti and form pure and complete collections to complement the their excellent denim products.”

Blue Holdings Inc


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