G&M BUYS KENAR MARK, EYES RELAUNCH FOR SPRING
Byline: Anne D’Innocenzio
NEW YORK — There’s a new chapter being written for Kenar, which filed for Chapter 11 liquidation a year ago.
Garfield & Marks Ltd., a better and bridge sportswear company with a specialty store focus, has acquired the Kenar trademark in bankruptcy court, according to Jo Ann Langer, president and chief executive officer at Garfield & Marks.
Langer said that the firm plans to relaunch Kenar for spring, with an emphasis on specialty store distribution. It will remain a better-price contemporary brand.
According to both Langer and Jeffrey K. Cymbler, an attorney at Angel & Frankel, Kenar’s banruptcy counsel, Garfield & Marks paid $1.55 million for the Kenar label.
Garfield & Marks outbid Beverly Hills Polo Club, which had executed a purchase agreement to buy the Kenar trademarks for $1.5 million in early July, Cymbler said.
The Beverly Hills Polo Club offer was subject to bankruptcy court approval and better offers at a bankruptcy court auction, which took place on Thursday.
“There’s tremendous equity in the brand,” said Langer. She added that Kenar should round out the firm’s portfolio of traditional labels: Garfield & Marks, a better-to-bridge label; Womyn, a better resource, and Alex Garfield, a bridge-to-designer label, which makes its official debut next spring.
Langer said: “There is a big need among specialty stores for reputable labels.”
Langer projects Kenar could reach $80 million in wholesale sales within a couple of years, a number it hit in its heyday in the early Nineties.
Langer said that first-year wholesale volume should reach about $20 million.
She added that Kenar will be 15 percent less expensive than the Garfield & Marks collection, whose jackets wholesale from $165 to $185.
The Garfield & Marks line should post $55 million in wholesale volume this year, while Womyn should reach $5 million this year.
She declined to give a sales projection for Alex Garfield.