LF USA Investments Inc., a San Francisco-based division of Li & Fung, and Rousso Apparel Group are in negotiations to buy GarfieldMarks LLC.
Officials at Rousso Apparel Group and GarfieldMarks said they were in talks, but declined further comment. LF USA could not be reached for comment.
This story first appeared in the December 14, 2006 issue of WWD. Subscribe Today.
GarfieldMarks, founded in 1993, had sales peak at more than $60 million in the Nineties. Since then, the company has changed hands three times. Its style and sales took a hit in the last two years, said Howard Sheer, co-managing partner for GarfieldMarks. But Sheer has said he expects 2007 sales will recover to $40 million.
Rousso Apparel Group is a $200 million, predominately moderate firm that holds the license for Oleg Cassini and owns the new niche label Naturally Organic World.
The possible deal, which sources said was still uncertain, follows the sale of Harvé Benard Ltd., which shared back-office facilities with GarfieldMarks. Six members of Benard’s management own GarfieldMarks. Wellington Capital Group, a New York-based equity firm, bought Harvé Benard in September for $12 million.
Joseph Gabbay, chief executive officer of Wellington Capital Group, said he was first approached to buy GarfieldMarks when he made the Harvé Benard acquisition and then again recently. “They did approach us on it, and we did pass on it a second time,” Gabbay said.