NEW YORK — Tarrant Apparel Group has closed on its offering of 850,000 shares of nonvoting series A convertible preferred stock at $38 a share.
The Los Angeles-based firm said the shares were sold to institutional and individual accredited investors. The offering, managed by Houston-based investment bank Sanders Morris Harris, allows for up to 1 million preferred shares to be sold. Tarrant said it expects a second and final closing to occur within the next several days.
In connection with the equity financing, Tarrant said it will hold a special shareholder meeting in early December seeking approval of conversion of each share of preferred stock to 10 shares of common stock. Tarrant said shareholders, including management, hold 53 percent of the company’s outstanding voting securities and have agreed to vote their shares in favor of the conversion at the special meeting.
As reported, the company has an exclusive distribution agreement with Federated Department Stores for American Rag Cie and with Wet Seal for No Jeans. Tarrant also manufactures Seven 7 jeanswear exclusively for Express.
Separately, Tarrant has leased its twill mill in Tlaxcala, Mexico, and its denim and twill mill in Ajalpan, Mexico. The agreements are for six years at an annual rent of $11 million. The firm entered into the leases with Kamel Nacif Borge, a beneficial owner of more than 10 percent of Tarrant common stock. In a separate agreement with Kamel Nacif Borge, his affiliates will manage the apparel firm’s operations at its remaining Mexican facilities. The management services agreement also runs for 6 years.
Gerard Guez, chairman and chief executive officer, said the funding and reorganization moves “will support the growth of our private label, trading company model that fueled profits in the years prior to our Mexico manufacturing initiative” and “allow us to maximize growth opportunities that would otherwise be left in incubation.”
The company provided 2004 guidance with income between $10 million and $12 million after depreciation expense of $15 million on sales of between $370 million and $395 million.
Shares of Tarrant closed down 5 cents, or 1.08 percent, at $4.60 in Nasdaq trading Monday.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty