BESTFORM TO GET LICENSE FOR DE LA RENTA INTIMATES
NEW YORK — Maidenform Inc. received bankruptcy court approval to enter into a royalty-sharing arrangement with Oscar de la Renta, allowing Bestform Foundations Inc. to take over the de la Renta intimate apparel license.
De la Renta wanted to enter into the new arrangement with Bestform, and proposed the royalty-sharing arrangement in exchange for Maidenform’s agreement to terminate the existing license with de la Renta.
Under the terms of the agreement, as reported, Maidenform will not receive any payments on the first $500,000 of annual royalties, but will receive 30 percent of the next $500,000, 25 percent of the following $500,000 and 20 percent of any royalties of more than $1.5 million.
The royalty-sharing agreement with Maidenform runs through Feb. 28, 2008.
Maidenform, in bankruptcy proceedings since July 2, had owned the licensing rights since 1987, but has discontinued making products under the designer’s name.
The firm is reorganizing around its three core brands: Maidenform, Flexees and Lilyette.
Bestform makes intimate apparel under the Bestform, Lily of France, Christian Dior, Natori, Josie, Enhance, Exquisite Form, Chic, Gitano and Lady Manhattan brands. Executives at Bestform could not be reached for comment.