XOXO SIGNS LICENSING AGREEMENT FOR JAPAN
LOS ANGELES — Lola Inc., the maker of XOXO, has signed a major licensing and distribution deal with Sumitomo Corp., which has guaranteed the junior/contemporary sportswear firm $10 million in purchases in the first year, according to Gregg Fiene, Lola’s co-owner.
As part of the agreement, Sumitomo will buy products from XOXO and its 13 licensees and distribute them throughout Japan.
Sumitomo is a trading company in Japan that works with sportswear brands such as Gotcha in development, licensing and distribution in Asia.
Sumitomo has also agreed to build three freestanding XOXO stores in Japan during the first year, two in Tokyo and one in Osaka. Fiene said the deal calls for five additional stores in the second year.
The agreement includes the formation of at least 30 in-store shops in department stores in Japan during the first year.
Sumitomo also has the right to appoint a manufacturer to produce a sub-licensed line in certain categories such as denim, made to fit particular body types, such as the petite sizes more prevalent in Asia.
Glenn Rutherford, chief executive officer and owner of Logan James Ltd., a licensing and brand management company in Evergreen, Colo., hired by Lola three years ago, said, “It was extremely difficult to put together because of the economy in Japan.”