The brand was picked up in March by DenimXworks Inc., an affiliate of New Fashion Products Inc., a Los Angeles-based company that had been Habitual's primary denim supplier.
Habitual was put on the auction block in February after parent company Pacific Marketing Works Inc. filed for Chapter 11 bankruptcy protection in the Central District of California. In court filings, PMW stated that it intended to sell all of Habitual's assets and intellectual property to New Fashion Products for $475,000. Bobby Ahn, owner of New Fashion, has assumed the title of president of Habitual.
Despite "trouble in the past," Ahn said he wants to "reestablish Habitual as one of the top premium denim brands out there."
New Fashion has been in the apparel business for more than 30 years and has an annual volume of $30 million, the company said. The privately held firm produces more than 40,000 denim units a week for brands such as J. Crew, Armani Exchange, DKNY, Brooks Brothers and Michael Kors.
PMW has been in a legal battle with Habitual's founders and original designers for more than two years. Michael and Nicole Colovos started Habitual in 2001 and were runners-up for the Council of Fashion Designers of America/Vogue Fashion Awards in 2004.
The relationship between PMW and the Colovoses began to sour soon after the two parties signed an agreement giving each a 50 percent share in Habitual. Michael and Nicole Colovos alleged in legal filings that PMW failed to provide adequate support for fabric, production, marketing and sales and said they were repeatedly pressured to reduce their share of revenues. A settlement entitling the Colovoses to $2.4 million was recently reached, but the bankruptcy filing could prevent them from collecting.
"They are attempting to collect that money and their efforts were stalled and thwarted by the bankruptcy filings," lawyer Douglas Dal Cielo, who is representing the Colovoses, told WWD in March.
The Colovoses did not return phone calls for comment on the sale.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia