NEW YORK — SOS Management is expected to announce today that it has completed the purchase of the BUM Equipment trademarks from BUM, exercising an option that SOS obtained when BUM emerged from bankruptcy proceedings in September 1997.
This story first appeared in the December 18, 2002 issue of WWD. Subscribe Today.
SOS has been managing the BUM trademarks since 1997, when BUM emerged from bankruptcy. Stephen Wayne, a partner in SOS, declined to specify the purchase price for the main BUM trademark and its approximately 50 derivations, such as Baby BUM and Ski BUM.
According to BUM’s reorganization plan, SOS had the option to buy the trademarks five years after BUM’s emergence from Chapter 11. Creditors of BUM still own the company, which filed for bankruptcy court protection in April 1996. Under terms of the reorganization, they agreed to a five-year payback plan in which they would receive between 75 cents and $1.05 on the dollar. Following completion of the deal, creditors will receive their final payments and the former BUM operating unit will be dissolved.
The new trademark and licensing operation will be known as BUM Equipment LLC and will be based in Mendham, N.J. The existing showroom will continue to be based in Hilton Head, S.C.
With the latest trademark acquisitions, Wayne and his partner, Steve Marra, own all of BUM’s worldwide trademark rights except those in Canada, where the rights are owned by Wal-Mart.
BUM’s licensing operation brings in nearly $70 million annually in royalties, based on more than $1.5 billion in wholesale revenues, according to Wayne. The brand is sold in doors such as Wal-Mart, Target, Meijers, ShopKo and its Pamida unit, Costco and Wal-Mart. Wal-Mart’s international licensing arrangement includes stores in Korea, Mexico, Puerto Rico, Germany, Brazil and Argentina.
SOS also manages Rampage, a top junior brand, as well as designer Gene Meyer in the men’s market. Wayne, in a separate business, is also the licensing agent for Buffalo Jeans, Ron Chereskin and Steve Madden.