Yes in Licensing Deal With Body Glove
Los Angeles-based Yes Clothing Co. on Tuesday said it has signed a licensing agreement to design, manufacture and market men’s and boys’ sportswear for Body Glove International, the Hermosa Beach company known for its neoprene wetsuits.
The agreement is the first major deal announced by Yes Clothing since designer Georges Marciano stepped down last month as chairman and chief executive of the company. Marciano, who is also former chairman of clothing giant Guess Inc., left Yes as the company is struggling with financial problems, including recent quarterly operating losses.
Marciano acquired a controlling stake in Yes stock in February 1995 and became chief executive four months later. Yes subsequently discontinued its production of private-label clothing for other companies and concentrated on its own brand of products, including denim clothing for women.
The company’s deal with Body Glove is part of an effort by Yes to redevelop its status as a supplier to other private-label companies, said Guy Anthome, chairman and chief executive of Yes.
“This is part of our rebuilding strategy,†Anthome said. “Yes is going back to its roots.â€
He also said the company will abandon its emphasis on denim clothing in the face of stiff competition and will focus on dresses and on a new line of casual clothing for young women. Anthome said stores will receive the new Yes clothing and the new Body Glove line in the spring.
As a result of the licensing deal, the Body Glove label will appear on men’s sportswear for the first time since 1989, when a previous licensee halted production. Yes will produce T-shirts, shorts, pants and casual shirts and jackets for Body Glove.
It will pay Body Glove a royalty of 6% on sales of the men’s line and 5% on boys’ apparel under the five-year agreement, which took effect July 1.
“This allows us to become a full-line clothing company again,†said Randy Meistrell, vice president and co-owner of Body Glove.
Body Glove is the nation’s oldest designer of wetsuits. Its licensees also produce a popular line of swimwear for men and women. The privately held company had about $80 million in sales last year. In Nasdaq trading Tuesday, Yes shares fell 37.5 cents to close at $1.
