NOVA PLANS EXPANSION WITH NEW INVESTORS
NEW YORK — The future is brightening for Nova USA.
Designer Tony Melillo’s firm, known for its sexy and affordable athletic-flavored sportswear, is getting a cash injection from four new investors, including industry veteran Martin Miller.
Although the size of the investment was not disclosed, Melillo said the new funding and management expertise will allow him to expand his wholesale business, open more freestanding Nova stores, launch a signature collection and start advertising the brand.
“I really wanted that kind of backing behind me,” Melillo told WWD Wednesday. “I don’t have a business degree.”
Previously a stylist and fashion editor, Melillo launched Nova USA with Gregory Frehling in October 1997 and earned a swift reputation for hip, modern men’s wear. Spring 2000 was his first season for women’s and the collection is destined for about 40 specialty stores, including Louis, Boston; Fred Segal in Los Angeles; Corso Como in Milan; Harvey Nichols in London, and Joyce in Hong Kong.
Melillo, 35, who currently operates a 650-square-foot store on Stanton Street on Manhattan’s Lower East Side, said he intends to open two larger locations over the next 18 months, including another Manhattan site and a Los Angeles location.
Under Nova’s new structure, Melillo, who remains the largest stockholder, will hold the titles of chairman and creative director. Miller will be treasurer. The other investors are Michael Rosenthal of Apparel Partners, who becomes president of Nova USA; Charles Strulovitz, who becomes vice president in charge of manufacturing and sourcing, and Christopher Cheng, an owner of a Hong Kong-based manufacturer.
Miller is the managing partner of the Belvedere Fund, an investment firm, and he operates a consulting firm called Terbell Group Inc., which represents French designer Daniel Cremieux.
“I think Tony is a very talented person and his approach and the kind of merchandise he has is going to be more important worldwide,” Miller said.
Melillo said his spring 2000 line generated about $1 million at wholesale. Sales are projected to reach $3 million to $5 million next year with the addition of holiday and pre-fall collections.
A more expensive signature line will likely be introduced in the second half of 2000, he noted.