PEGASUS APPAREL ACQUIRES RETAILER
Byline: David Moin
NEW YORK — The Pegasus Apparel Group has made its first retail acquisition, buying Klein’s, a single-unit, 25-year-old women’s store on the Lower East Side with an upscale offering.
Whether the 6,000-square-foot store at 105 Orchard Street on the corner of Delancey extends its offerings by selling some of the five Pegasus-owned collections is undecided. Pegasus also owns Daryl K, Miguel Adrover, Judith Leiber, Angela Amiri and Pamela Dennis.
“We’re not sure yet what our strategy is,” said Stephen L. Ruzow, chairman and chief executive of Pegasus, in an interview Monday about Klein’s. “But we now have 6,000 square feet in the next hot area of New York City.”
In the past two years, a handful of trendier stores have opened near Klein’s, including the denim-driven streetwear store DDC Lab; the footwear, apparel, and stuffed animal retailer Alife; Zao, which is backed by Elie Tahari; and Seven, which sells high-end European designers.
Ruzow characterized Klein’s as “healthy and profitable” but declined to reveal any profit or sales figures, or how much was paid for the business. A long-term lease on the site was part of the acquisition.
Asked how he became familiar with Klein’s, Ruzow said “a lot of my wife’s friends shop there,” for such labels as Piazza Sempione, Malo, Luciano Barbera and Sonia Rykiel. He became more acquainted with the store when he ran into Ed Klein in the showroom of Pamela Dennis, which sells Klein’s. “We got to talking,” Ruzow said.
Not long after, Ruzow felt Klein’s would be a good addition to the Pegasus Apparel Group, even though it breaks the pattern of buying fashion makers, and though two of the lines, Judith Leiber and Daryl K, do have stores.
“We’ve always said that one of our strengths is in our diversification,” Ruzow noted.