Russell-Newman Inc. has purchased the Los Angeles-based Carol Malony brand of upscale designer intimates, its third acquisition since March and first foray into the foundations field.
This story first appeared in the August 4, 2008 issue of WWD. Subscribe Today.
Last month, Russell-Newman acquired the assets and trademark of KN Karen Neuburger, which followed the purchase of St. Eve International in March.
The Carol Malony name in lingerie has had a strong following among specialty retailers for more than two decades, beginning with upscale lingerie boutiques in Los Angeles in the Eighties and later as a supplier to Victoria’s Secret. The Carol Malony bra brand features two collections: Carol Malony Signature, a better line, and Haute, a designer line sold at better department and specialty stores in the U.S., Europe and Australia.
Malony’s designs won several awards in 2007, including the Madam Figaro Award and the Ultra Modernite Trophy for excellence in lingerie design at the Salon International de la Lingerie in Paris.
A purchase price was not available, but annual wholesale sales for the Carol Malony brand are more than $10 million, according to industry estimates.
David Martino, president and chief executive officer of Denton, Tex.-based Russell-Newman, said tough economic times present opportunities for strategic acquisitions.
“There are a lot of opportunities when some companies are in financial straits,” Martino said. “It’s a good time to make acquisitions and we keep most of the employees when we do these acquisitions.”
Nancy Marino, president of the newly created Carol Malony division, said, “Russell-Newman is a very strong sleepwear company and now the strategy is to become a major player in lingerie. It’s a good opportunity because of what’s going on in the retail and manufacturing sectors. When you can leverage the strategy of Russell-Newman, which has great infrastructure, you’re building into a very strong environment.”