BONGO TANGO: Candie’s Inc., the owner of the Bongo trademark, won an injunction last week against its former denim licensees in Los Angeles. New York-based Candie’s and its subsidiary, Unzipped Apparel Inc., filed a breach of contract and fraud lawsuit last month in Los Angeles Superior Court against Sweet Sportswear LLC, Azteca Production International and Apparel Distribution Services, which owned the exclusive right to operate, manufacture and distribute Bongo jeans. The lawsuit seeks more than $50 million in damages. Candie’s wants to get some 600,000 pairs of jeans warehoused by the licensees so it can put them into stores next week in time for back-to-school. Deborah Sorell Stehr, senior vice president and general counsel for Candie’s, said the company planned to post a required $1.7 million bond for the goods. Edward Woods, co-counsel for the defendants, said his clients would file a cross complaint for fraud and breach of conduct in two weeks. Woods said Unzipped owes both ADS and Azteca about $3.5 million. Sweet owner Hubert Guez, who also is named in the suit, is owed $11 million in a promissory note, he said.

This story first appeared in the September 7, 2004 issue of WWD. Subscribe Today.

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