JERUSALEM — After financial uncertainty, seamless apparel and textile manufacturer Tefron has signed a memorandum of understanding with its principal lenders to extend and expand its line of credit.
The company has also hired industry veteran Amit Meridor as its new chief executive officer.
Controlled by First Israel Mezzanine Investors Fund and Mivtach Shamir Holdings Ltd., Tefron had received a three-week extension of credit until the end of December from Israel’s three largest banks in order to stay in business. The lenders, Bank Hapoalim, Bank Leumi Le-Israel and Discount Bank, provided Tefron with $29 million in credit at the end of September.
Tefron’s troubles date to last year, with a $23.5 million revenue loss of orders from Victoria’s Secret, one of its largest and longest-standing customers, which decided to move some production to India. Tefron ended up reporting an $8.3 million net loss for the third quarter of 2009 and 45 percent loss in revenues to $21 million.
The agreement, signed with Banks Leumi, Discount and Hapoalim, offers the continuation of the current $28.95 million line of credit and adds $1.8 million for a total of $30.75 million. It also calls for a minimum addition of $4 million in equity investment, which the company’s major shareholders have committed to making.
“We have removed the last element of doubt about Tefron’s financial picture,” said company chairman Jacob Gelbard. “This closes the chapter on what has clearly been a challenging month for our company.”
Meridor succeeds Adi Livneh, who left the company in November. He has 15 years in the textile industry, working for NILIT Fibers Ltd., an Israeli manufacturer of high-quality yarn and fibers. Meridor also has extensive managerial experience in business development and company turnaround programs, and worked closely with Tefron and other seamless garment producers at NILIT.
Tefron became a leader in seamless apparel manufacturing technology after investing more than $100 million in machinery. The company has long had a roster of well-known brands, including Patagonia, Victoria’s Secret, Calvin Klein and Lululemon Athletica. It was a key player in Nike’s 2008 marketing plan before the Beijing Summer Olympics, as the manufacturer behind its NikePro seamless garments.
The New York Stock Exchange-traded company started out manufacturing underwear for the Israeli army in the Seventies, and used technology and vertical production to revolutionize its textile business, eventually outsourcing and establishing manufacturing facilities in Israel, Honduras, Jordan and the U.S.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews