DONNKENNY TO ACQUIRE DELTA BURKE’S LABEL
NEW YORK — Donnkenny has reached an agreement to acquire the assets of Ann Travis Inc., which makes the Delta Burke large-size women’s apparel line. Terms of the transaction were not disclosed.
Daniel H. Levy, chairman of Donnkenny, said Travis does some private label, but primarily makes large-size, woven-related separates under the Delta Burke label. Burke is best known as the actress on the TV sitcom, “Designing Woman.”
“We’re really excited about obtaining the Delta Burke name,” Levy told WWD. “We feel the name has a lot of legs to it and can be expanded in a lot of ways. We hope to make it a cornerstone of the Donnkenny business.”
Donnkenny, whose labels include Victoria Jones, Casey & Max, Pierre Cardin and Donnkenny, generated sales of $174 million last year. Travis’s sales reached about $20 million, according to Levy. Levy said Travis’s Mitch Winter, president and one of the principal owners, and Scott Yellin, its head salesperson, have agreed to join Donnkenny.
Levy said the acquisition should be accretive to earnings within the first six months since existing back office and sales support can handle much of the increased Travis business. He also said the move “signals a positive change in the company’s direction” as it refocuses on driving growth with core brands and through acquisitions. The maker of moderate women’s apparel has spent the last three years cutting costs and improving efficiencies after becoming ensnared in a lawsuit that led last year to its former chief executive Richard Rubin pleading guilty to conspiracy to commit securities fraud.