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Delta Galil Buys KN Karen Neuburger

The company's portfolio of high-profile sleepwear and intimates licenses includes Tommy Hilfiger and Lucky at the its U.S. unit, D2 Brands.

Delta Galil Industries Ltd. has acquired the assets, inventory and brand name of KN Karen Neuburger from CIT for $4 million.

 

The KN Karen Neuburger business at Russell-Newman Brands was an asset that has been foreclosed by financial lender CIT. The KN Karen Neuburger lifestyle brand includes women’s sleepwear, robes, and home accessories and home products carried at major department stores. The brand joins Tel Aviv-based Delta Galil’s portfolio of high-profile sleepwear and intimates licenses, which include Tommy Hilfiger and Lucky at the company’s U.S. unit, D2 Brands.

 

Karen Neuburger created her sleepwear brand in 1994 in San Francisco, where the design team still resides. The brand, which is known for its layered floral prints, soft blends of polyester and cotton and flattering silhouettes, received a substantial sales boost in 1997 when Oprah Winfrey prominently featured the designer’s pajamas on “The Oprah Winfrey Show.” Since the inaugural appearance, Oprah continued to feature product on her annual “Favorite Things” episodes, bolstering the brand’s presence in the lifestyle arena. Neuburger became well known for store appearances where she would throw slumber parties on a king-size bed, wearing her namesake pajamas, while inviting shoppers to try on a pair of PJs. Among Neuburger’s taglines that garnered media attention was a claim that she had “been in bed with thousands of women.”

Isaac Dabah, chief executive officer of Delta Galil, said he’s been a longtime “fan of the brand.”

“I’m confident in its continued success with Delta Galil. Using our strength in fabric innovation, marketing and distribution, Delta intends to expand the Karen Neuburger brand on a global scale. We expect sales to be in the $20 million range for 2012, and for this business to be accretive to the company’s profits in 2012.”

Regarding the brand’s consumer appeal, Dabah said, “The mixing of prints really stands out. A consumer can see the brand’s products from far away and they immediately know that it’s a Karen Neuburger print.…We are looking forward to supporting, marketing and advertising the brand, and stores are telling us they want to grow with the brand.”

Delta Galil is a global manufacturer and marketer of branded and private label apparel products for men, women and children, including intimate apparel for women, men’s underwear, socks, babywear, leisurewear and sleepwear. The vertical company also produces knit fabrics, elastic ribbons and trims.