JONES APPAREL GROUP LICENSED FOR DIOR DESIGNER-PRICED COATS
NEW YORK — Christian Dior Inc. has licensed Jones Apparel Group to make and distribute its designer-priced coat line.
The license moves from Cuddlecoat Inc., which held it for 10 years until its expiration on Dec. 1. Moving with it is Josh Lipman, formerly president and principal of Cuddlecoat, who has been named president of the Christian Dior Coat division at Jones.
Lipman’s family had owned Cuddlecoat for 80 years, but this month he was forced to give up control of the company to Loro Piana, its main cashmere supplier. As part of a credit facility it set up for Cuddlecoat, Loro Piana became the major shareholder of the company.
In January, creditors filed an involuntary Chapter 11 against Cuddlecoat. On Tuesday, the company filed court papers to convert the case to a voluntary reorganization, saying it is “entitled to the benefits of Chapter 11 of the code as a voluntary debtor.”
Cuddlecoat listed liabilities of $4 million, including unsecured debt of $1.1 million, and assets of $1.2 million.
In court papers, Cuddlecoat, which has annual sales of about $5 million, said Christian Dior coats accounted for about 90 percent of that business.
Christian Dior already has a relationship with Jones, which has held the Dior suit license for 14 years. Although Dior officials wouldn’t reveal a volume for the line, they said suit sales tripled from 1990 to 1995.
The coat and suit lines will share showroom space on the 21st floor of 1411 Broadway, here.