GRUPO XTRA, ARIS UNION LEGALLY ENDS

Byline: Katherine Bowers

LOS ANGELES — The marriage between Aris Industries and its primary licensee, Grupo Xtra of New York Inc., is officially kaput.
Judge Ernest Robles ruled in federal bankruptcy court here late Thursday that Grupo Xtra is to immediately discontinue its use of five trademarks, including junior sportswear label XOXO, and vacate the Commerce, Calif.-based manufacturing facilities owned by Aris. Roughly 300 Grupo Xtra employees work there.
Aris is owed $6.2 million in royalties by Grupo Xtra unpaid since January, according to court documents. Grupo had a five-year license for use of all Aris trademarks that was due to expire in 2006. Factor CIT Commercial Services, owed $31 million by Grupo Xtra, took possession of all inventory and work-in-progress and resold it to Arnold Simon, president of Aris.
Simon said the company will continue to ship its orders with financing from CIT.
In addition to XOXO, Aris’ trademarks are Fragile jeanswear and sportswear, Baby Phat apparel, Members Only sportswear and outerwear and Brooks Bros. golf apparel.

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